The government’s personal accident scheme Pradhan Mantri Suraksha Bima Yojana (PMSBY) has almost touched 100 million enrollments. This plan, which was launhced in May 2015, was an extension of the Jan Dhan Yojana. As on March 1, the scheme covered 99.1 million lives.
The personal accident policy offers a cover of Rs 2 lakh for a premium of only Rs 12 per annum. To make it affordable for everyone, the policy premiums have also not been revised despite insurers requesting a revision.
Jan Dhan Yojana’s aim was to provide bank accounts to all Indians while Jan Suraksha aims to get all Indians under the insurance net.
PMSBY has seen a substantially higher number of enrollments than the term insurance policy Jeevan Jyoti Bima Yojana. The latter has seen 30.8 million enrollments as of March 1, 2017. Insurers said that this is not only because PMSBY was cheaper but also because accidental deaths are higher in the country.
This scheme also covers death or disability resulting from natural calamities. While death due to suicide is not covered, that from murder is.
For death, the maximum cover is Rs 2 lakh as also for total and irrecoverable loss of both eyes, loss of use of both hands/feet. If there is a total and irrecoverable loss of sight in one eye, loss of use of one hand or foot, Rs 1 lakh will be paid as claim.
According to data from Jan Suraksha Yojana website, males in rural areas have taken a lead in taking the personal accident cover followed by urban males. Females in rural areas have also opted for this scheme compared to their urban counterparts.
However, the pace of enrollments has come down, said banks as well as insurers. This was seen in the case of the Jan Dhan Yojana. After the Yogana reached its targeted 150 million enrollments, banks started reducing the aggressive marketing of the schemes.
The claims settlement under the personal accident scheme have been high. As per the data available, about 89.8 percent of the 11,948 claims have been paid.
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