In India, only one in five people has health insurance, and this number is even lower for those in the lower-income bracket. This is a worrying statistic, especially when we consider the high healthcare costs associated with serious illnesses or accidents. Fortunately, the government has introduced several schemes to promote affordable health insurance, one of which is the Pradhan Mantri Suraksha Bima Yojana (PMSBY) scheme.
In this article, we will discuss the PMSBY scheme details, as well as how it can be beneficial for corporate health insurance policies.
What is the PMSBY scheme, and how does it work?
The PMSBY scheme is a government-backed insurance scheme designed to provide accidental death and disability coverage to eligible individuals. The scheme is available to all Indian citizens between the ages of 18-70 years, with a bank account linked to their Aadhaar number. The annual premium for the PMSBY scheme is just Rs. 12 per annum, making it an affordable option for all individuals, regardless of their income level.
The PMSBY scheme provides coverage for accidental death and permanent total disability caused by an accident, as well as coverage for permanent partial disability caused by an accident. The sum assured for accidental death is Rs. 2 lakhs, while the coverage for permanent total disability and permanent partial disability is Rs. 2 lakhs and Rs. 1 lakh, respectively.
To enroll in the PMSBY scheme, individuals must provide their Aadhaar number and bank account details to their respective bank. The premium is automatically deducted from the bank account on an annual basis, and the coverage is valid for one year from June 1 to May 31 of the following year.
Why is the PMSBY scheme beneficial for corporate health insurance policies?
Corporate health insurance policies are a vital part of employee benefits packages provided by companies. These policies are designed to provide healthcare coverage to employees and their families, ensuring that they are protected from the financial impact of illnesses or accidents. However, most corporate health insurance policies do not include accidental death or disability coverage, leaving employees and their families vulnerable in case of an accident.
The PMSBY scheme can complement corporate health insurance policies by providing accidental death and disability coverage to employees. Since the PMSBY scheme is a government-backed insurance scheme, it is reliable and affordable. By adding the PMSBY scheme to their employee benefits package, companies can provide comprehensive healthcare coverage to their employees, ensuring that they are protected from all eventualities.
Additionally, corporate health insurance policies that include the PMSBY scheme can enhance the company’s reputation as an employee-centric organization. By providing comprehensive healthcare coverage to employees, companies can attract and retain top talent, which ultimately leads to improved productivity and profitability.
What are the key features of the PMSBY scheme?
Here are some key features of the PMSBY scheme that employers and employees need to know:
- Affordable premiums: The PMSBY scheme’s annual premium is just Rs. 12 per annum, making it an affordable option for all individuals, regardless of their income level.
- Eligibility criteria: To be eligible for the PMSBY scheme, individuals must be Indian citizens between the ages of 18-70 years, with a bank account linked to their Aadhaar number.
- Coverage: The PMSBY scheme provides coverage for accidental death and permanent total disability caused by an accident, as well as coverage for permanent partial disability caused by an accident. The sum assured for accidental death is Rs. 2 lakhs, while the coverage for permanent total disability and permanent partial disability is Rs. 2 lakhs and Rs. 1 lakh, respectively.
- Renewal: The coverage under the PMSBY scheme is valid for one year from June 1 to May 31 of the following year. Individuals must renew their coverage every year by paying the annual premium.
- Claim process: In case of a claim, the nominee of the insured individual must submit the claim form, death certificate, and other relevant documents to the bank where the policy is linked. The claim amount is deposited in the nominee’s bank account within a few days of the claim being approved.
Conclusion
The PMSBY scheme is a government-backed insurance scheme that provides accidental death and disability coverage to eligible individuals. The scheme is affordable and reliable, making it an excellent option for those who do not have access to comprehensive healthcare coverage. Incorporating the PMSBY scheme into corporate health insurance policies can provide additional benefits to employees and enhance the company’s reputation as an employee-centric organization. As more and more companies prioritize employee health and well-being, it is essential to consider the PMSBY scheme as a valuable addition to employee benefits packages.