The Finance Minister Mr. Arun Jaitely presented the Union Budget 2015-2016 in the Parliament recently. He promised to launch three low-investment schemes - Pradhan Mantri Jeevan Jyoti Bhima Scheme, Pradhan Mantri Suraksha Bhima Yojana and Atal Pension Yojana. The main purpose of these financial schemes is to benefit the underprivileged and the deprived sections in our country.
Most of the population residing in India do not have insurance cover. Million families struggle to meet their basic needs and having an insurance policy to cover healthcare costs or life would be the last thing on their mind. Being uninsured affects their access to needed medical assistance. Medical treatment is expensive in the current inflation rate. So the Prime Minister of India Mr. Narendra Modi and Mr. Jaitely, have come together to devise a universal insurance scheme for all – mainly to benefit the economically weaker sections of our society.
Pradhan Mantri Suraksha Bhima Yojana was the first life insurance scheme launched by the Government of India. The main intention of launching this scheme is to provide low-cost accidental death cover to all the subscribers. Let us look at the features and benefits of Pradhan Mantri Suraksha Bhima Yojana:-
• A premium of Rs. 12 per year is to be paid, making this insurance scheme the lowest premium insurance policy in India.
• The premium amount will be auto-debited from the bank account in a single instalment.
• Accidental death cover and full disability cover is Rs. 2 lakh.
• A sum assured of Rs. 1 lakh will be provided for partial disability. This will benefit the earning member in the family.
• Proceeds of the policy will be paid to the nominee.
• This insurance policy scheme can be opened by an Indian citizen.
• Minimum age limit for joining this scheme is 18 years.
• Maximum age limit for joining this scheme is 70 years.
• Aadhar card linked to bank account is necessary for opening and operating this insurance policy. No other documents are required to subscribe to this policy.
• Application for this investment scheme is available with selected public sector general insurance companies and insurers. Final list of insurers offering this scheme is yet to be finalised.
• At the time of joining this scheme, the subscriber would get two options. Either he can choose the auto-renewal option or opt for renewing the policy each year.
• In the case of renewing annually, policy will need to be renewed each year in June.
• Long term options are also available. The subscriber can select the auto renewal option.
• Premiums are exempted from tax deductions under Section 80 C of Income Tax Act.
• On maturity, the matured amount will be exempted from tax under Section 10 D. But if the proceeds exceeds Rs. 1 lakh, then Form 15G or 15H needs to be submitted, else TDS of 2 percent will be deducted.
Pradhan Mantri Suraksha Bhima Yojana is a boon for those people who are unable to buy an insurance policy because of the high premiums. At just Rs. 12, people can now avail an insurance cover that provides benefit to the surviving members if something happens to the policy holder. This is definitely a welcome step initiated by the government of India. Please help people working for you like maids, drivers and peons to take advantage of this insurance scheme.
This scheme will be offered by selected public sector general insurance companies like New India Assurance Company, United India Insurance Company, and The Oriental Insurance Company. The government also plans to rope in few other insurers too. This policy will be launched from 1st June, 2015.