PMSBY: Cheapest Disability Insurance in India with Low Premium

As we explained in our infographic on disability statistics in India, the overall income situation of disabled people is really bad. Only around 36% of disabled people are able to find work. Innumerable disabled people are unable to work because of the lack of disabled friendly infrastructure. How would these people pay big premium amounts for the disability insurance plans? And then there are so many cases wherein a person loses her ability to earn due to disability caused by illness or accident. In such cases how the person would pay for the treatment and provide for dependents?

Affordable disability insurance is something that Indian population urgently require. However, such insurance is available only as part of life, health or term insurance. So, at present, you can not take only disability insurance plan from the private sector.

Thankfully, a basic disability insurance plan from the government is available under the Prime Minister’s Suraksha Bima Yojna (PMSBY). With the annual premium of just Rs. 12, this is certainly the cheapest (and probably the only) disability insurance plan in India.

Why Prime Minister’s Suraksha Bima Yojna (PMSBY) is Important?

It is not uncommon to come across cases wherein a grown-up and livelihood earning person becomes permanently or partially disabled. Such unfortunate events not only take away the earning capacity of the person but it also puts financial burden of medical treatment on the family. As a result, poor families reel under very difficult times. If every person could be covered under an affordable disability insurance — such hardships could be eased significantly.

PMSBY scheme provides an accidental death and permanent disability cover of Rs. 2,00,000 and Rs. 1,00,000 cover for permanent partial disability.

In PMSBY, the permanent disability is defined as the irrecoverable loss of

• both eyes
• both hands
• both feet
• one eyesight and loss of use of a hand or a foot

The permanent partial disability is defined as the irrecoverable loss of

• one eye
• one hand
• one foot

For poorer families, getting even Rs. 1,00,000 is a huge help in case tragedy of disability struck them. There are millions in India who find it hard to arrange for two meals a day. For such people, disability can prove to be disastrous. Schemes like PMSBY can be extremely helpful in such cases.

What do you need to get covered under PMSBY?

Any Indian citizen who is aged between 18 to 70 years is eligible for PMSBY. All you need is a savings bank account and Aadhaar Number. If you have a joint savings account, even then you’re eligible for PMSBY. Thus, if three people are jointly holding a bank account, then all three can apply for PMSBY using the same bank account. But, of course, each of them must have a separate Aadhaar Number.

ALSO SEE: Niramaya Health Insurance Scheme

Non-resident Indians (NRIs) are also eligible for PMSBY. Their insurance claims will only be paid in Indian Rupees.

Premium of PMSBY

At present one has to pay only Rs. 12 as annual premium for PMSBY. This premium amount will be reviewed periodically and it may increase if claims would begin to surpass the premium amount collected by the general insurers. However, an unaffordable increase in premium is unlikely because the primary objective of the government is to provide a social security scheme.

How to pay the Premium?

Premium amount will be automatically deducted from your bank account on every 01 June.

How to Register for PMSBY?

You can download the application form from the government’s website. Fill this form and give it in your bank’s branch.

It makes sense that you apply for PMSBY and inform everyone you know about this scheme. This is the least expensive disability insurance plan available in Indian market. If you have registered for PMSBY or have made claims, please share your tips and experience with us. Thank you for using WeCapable.