Insurance is an essential aspect of every individual’s life. It provides a sense of security and financial protection in case of any uncertainties. However, not everyone has access to insurance coverage, and this can lead to severe financial and emotional hardships. Recognizing this gap in the market, the Government of India has launched several schemes to provide insurance coverage to individuals, including the Pradhan Mantri Suraksha Bima Yojana (PMSBY).
The PMSBY full form stands for Pradhan Mantri Suraksha Bima Yojana, which is a social security scheme launched by the Government of India in 2015. The scheme provides accidental death and disability insurance coverage to individuals between the ages of 18 to 70 years at an affordable premium of only Rs. 12 per annum. The insurance coverage amount under PMSBY is Rs. 2 lakhs for accidental death and total permanent disability and Rs. 1 lakh for partial disability.
PMSBY is a significant step towards empowering individuals with insurance coverage, especially in a country where a significant percentage of the population is not covered under any insurance schemes. The scheme aims to provide financial security to individuals, especially those from lower-income groups who cannot afford expensive insurance policies.
The enrollment process for PMSBY is effortless and hassle-free. Individuals can enroll in the scheme through their bank accounts by submitting the PMSBY application form available on the National Health Authority (NHA) BIS portal or from any of the participating banks. The scheme is available for both new and existing bank account holders, and the premium is automatically deducted from the bank account on an annual basis.
The NHA BIS portal, or the National Health Authority Business Information System portal, is a platform designed to provide information and services related to various healthcare schemes launched by the Government of India. The portal is managed by the National Health Authority (NHA), which is responsible for implementing and managing various healthcare schemes and initiatives in the country.
The NHA BIS portal provides a platform for individuals to enroll in various healthcare and social security schemes launched by the government, including PMSBY, PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana), and APY (Atal Pension Yojana). The portal allows individuals to access information related to the scheme, including the enrollment process, documents required, and premium payment options. The portal also offers a grievance redressal mechanism, which allows individuals to report any issues related to the enrollment process or the scheme’s functioning.
One of the main benefits of enrolling in PMSBY is that it provides financial assistance to the family members in case of accidental death or disability of the insured individual. The insurance coverage amount can be used for medical expenses, paying off debts, education, or any other expenses that the family may incur due to the individual’s loss of income or disability.
In addition, PMSBY also offers tax benefits to individuals under section 80C of the Income Tax Act. The annual premium paid towards the scheme can be claimed as a deduction from the taxable income, thereby reducing the tax liability.
PMSBY has been a game-changer for individuals who were previously unable to access insurance coverage. The scheme has been successful in reaching out to a large number of people, with over 25 crore individuals enrolled in the scheme as of 2021. The scheme has been particularly popular in rural areas, where there is a lack of awareness and access to insurance policies.
However, despite the scheme’s success, there are still challenges that need to be addressed. One of the main challenges is the lack of awareness among individuals about the scheme and its benefits. Many eligible individuals may not be aware of the scheme’s existence or may not have the necessary information to enroll in it. Therefore, there is a need for more extensive outreach campaigns to create awareness among individuals, particularly those from lower-income groups and rural areas.
Another challenge is the low claim settlement ratio of the scheme. There have been instances where individuals have faced difficulties in getting their claims settled, leading to frustration and mistrust in the scheme. Therefore, there is a need to improve the claim settlement process and make it more transparent and accessible to individuals.
In conclusion, PMSBY has been a significant step towards providing insurance coverage to individuals who were previously unable to access it. The scheme has been successful in reaching out to a large number of people, particularly those from lower-income groups and rural areas. The NHA BIS portal has played a crucial role in enabling individuals to enroll in the scheme easily and without any hassle. However, there are still challenges that need to be addressed, including the lack of awareness and low claim settlement ratio. By addressing these challenges, PMSBY can become even more effective in empowering individuals with insurance coverage and providing financial security to them and their families.