March 11, 2015

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Pradhan Mantri Suraksha Bima Yojana – tenant life cover to insurance industry

In the union budget 2015-2016 Indian Finance Minister Arun Jaitley offered a path breaking effort -Pradhan Mantri Suraksha Bima Yojana (PMSBY) to boost the morale of vulnerable in the country. Presently, 40% of vehicles are plying on the roads with insurance. So we can hope with this trigger Government may see more claim applications for the vehicles in the future.

Let’s give a look what’s the catch behind this low cost accidental cover

What is Pradhan Mantri Suraksha Bima Yojana: It is an accidental insurance policy which will cover disablement or death of the policyholder in case of any damage because of accident.

Risk Coverage: Provides a complete disability cover and accidental death coverage of Rs 2 lakh and for the partial disability it will provide a cover of Rs 1 lakh.

Premium: Rs 12 every year

Launch Date: June 2015

Mode of Payment: The amount of premium will be directly deducted by the banks from the policyholder’s account.

Renewal: Policy Holders have to renew the account per annum or auto debit instructions can also work.

Companies offering schemes: National Insurance Company, United India Insurance Corporation, New India Assurance Company and The Oriental Insurance Corporation.

Subscription: Any individual with an Aadhaar link bank account along with the application form can join the scheme.

Conclusion: Those who are without any insurance cover it is an ideal option for them. However for the middle class the cover is not adequate. One can have an equivalent cover normally with roughly Rs 100. Mostly it is not ideal for middle class.


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