At least 75 percent of Indians are not covered under any form of life insurance, says a report. That, shockingly, is more than the population of the entire Europe. It’s quite shocking that just 25 percent of the population is covered under life insurance. As per the data from India Spend, India’s life insurance penetration was 2.72%. To make life insurance reachable to the rest of the population, the central government launched Pradhan Mantri Suraksha Bima Yojana.
The scheme is available to people in the age group 18 to 70 years with a bank account. Interested applicants should give their consent to join or enable the auto debit option before 31st May for the coverage period from 1st June to 31st May on an annual renewal basis.
An aadhaar card is needed for the KYC and the bank account. The risk coverage under the scheme is Rs 2 lakh for accidental death and full disability, and Rs. 1 lakh for partial disability. The premium of Rs. 20 per annum will be deducted from the account holder’s bank account through an ‘auto-debit’ facility in one instalment. The automatic deduction can only happen if the account holder has allowed for the same.
Pradhan Mantri Suraksha Bima Yojana is being offered by Public Sector General Insurance Companies or any other General Insurance Company, who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose.
The accident insurance shall terminate on certain conditions when the person reaches the age of 70 years old — like the closure of the account with an insufficient balance, in case the person is covered by more than one insurance scheme, if the insurance cover provider ceases to exist due to any technical glitch, administrative reasons, among others.
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