Skip to main content

Pradhan Mantri Suraksha Bima Yojana

 

Pradhan Mantri Suraksha Bima Yojana under Budget 2015-16

While presenting Budget 2015-16, Finance Minister Arun Jaitely has unearthed a low-premium insurance scheme named "Pradhan Mantri Suraksha Bima Yojana" which aims to increase the insurance penetration in India by providing life cover at a very low annual premium. This social security scheme will be linked to the popular scheme "Pradhan Mantri Jan Dhan Yojana".

Pradhan Mantri Suraksha Bima Yojana will provide insurance cover against accidental death & disability for one year and should be renewed from year to year before 31st May every year.

Pradhan Mantri Suraksha Bima Yojana features:


Eligibility:

Pradhan Mantri Suraksha Bima Yojana is available to the people falls in the age group of 18 years (completed) to 70 years (running) having savings bank account.

In case, individual is having more than one savings account with the same bank or other bank, he would only be eligible to apply for the scheme through any one savings bank account. This means one person can possess only one insurance policy under Pradhan Mantri Suraksha Bima Yojana.

In case, it is found that individual is holding more than one policy i.e. he has applied for this scheme from other savings bank account also. Only one policy shall be continued and all the premiums paid through various savings accounts shall be forfeited.

How to Apply for Pradhan Mantri Suraksha Bima Yojana ?

Interested individual shall first link their Aadhaar card which is mandatory with their savings bank account. Once it is done, a simple consent cum declaration form is to be filled every year and to be submitted to the bank before 1st of June, in order to avail the benefit of this scheme.

Download: Pradhan Mantri Suraksha Bima Yojana Consent/Application Form

There is no time limit for subscribing to this scheme. New eligible entrants can join the scheme in any year on payment of annual premium through auto-debit facility.

Individuals who opted out from this scheme can also at any point rejoin this scheme on the payment of premium subject to the eligibility criteria.

 

Nomination

Nominee name is to be given in the form along with relationship. In case the nominee is minor, name of the guardian is also to be given.

Annual Premium

The premium for this scheme is as low as Rs.12 per annum i.e. Rs.1 per month. However, in case where auto-debit of the account takes place after 1st June, the insurance cover would commence from the first day of the next month i.e. if auto-debit is done on 15th August, than the cover under this scheme would start from 1st September.

Payment Mode of Premium

The eligibility criteria includes person to have savings bank account because the payment mode for the premium is fixed as direct debit from the Bank Account.

This means premium of Rs.12 would be auto debited from your bank account in one installment in the month of May every year.

Currently, only auto-debit facility is available for premium payment.

Risk-Coverage

There are two types of insurance covers provided in this scheme:

S.No.Risk-Coverage/BenefitsSum Insured
1.Death (Natural or Accidental)Rs.2 lakhs
2.Total and irrecoverable loss of both eyes or loss of use of both hands and feet or loss of sight of one eye and loss of use of hand or foot.Rs.2 lakhs
3.Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot.Rs.1 lakh

Term of Risk Coverage:

Pradhan Mantri Suraksha Bima Yojana would provide insurance coverage for one year stretching from 1st June to 31st May every year.

There are two options to get the risk-coverage:

  1. Every year before 1st June, policy holder is required to fill form and renew the scheme, to continue availing the benefits. The premium will be auto-debited once the form is submitted to the bank.
  2. There is also a long-term option, say 2 to 4 years, in the form which can be chosen to avail long-term risk coverage without any break. If this option is chosen, banks will auto-debit the annual premium every year.
 

Where to get this Scheme?

All the public sector general insurance companies such as LIC offers this scheme. Other private insurers can also offer this scheme but has to tie-up with the banks such as SBI, PNB, BOB etc.

Pradhan Mantri Suraksha Bima Yojana details

Termination of the Insurance Cover:

There are few instances where the insurance cover under Pradhan Mantri Suraksha Bima Yojana would come to an end:

  1. On attaining/completing the age of 70 years.
  2. Closure of the savings bank account through which enrollment was done. This means policy is not transferable; you have to stick with the same bank throughout the policy tenure.
  3. Insufficient balance to pay for the premium. This condition, I think would never be a problem for any one. J
  4. In case the premium is not paid on time due to any technical glitch, the risk cover would be terminated for the period of non-payment. Subsequent payment of premium would restore the cover.

Taxation

The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D).

But if the proceeds from insurance policy exceed Rs.1 lakh and no Form 15G or Form 15H is submitted to the insurer, there shall be deduction of TDS at the rate of 2% from the total proceeds.

 

So it is advisable to submit Form 15G or Form 15H as applicable each year to the insurer.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

Mutual Fund Reivew: Birla Sun Life Asset Allocation Conservative

Birla Sun Life Asset Allocation Conservative has numbers on its side to prove its credibility… Don't be surprised to find this Fund of Funds ( FoF ) in our recommendations. It has earned its place. And despite the difference in the structure of the product, there is no arguing with the numbers.   Of the total 6 years of its existence, the fund has been among the top 10 funds in its category in four of them. Last year it put up an average show and the only year it underperformed its peers was in 2008.   One aspect to look at when investing in an FoF is the expense ratio. The expense ratio of an FoF is capped at a lower limit of 0.75 per cent (2.50% for an actively managed fund). However, the FoF not only has its own expense (though lower) but even the expense ratio of the fund it is investing into. Fortunately, the fund manager takes that into account. "Expense is one of the important criteria used for fund selection and is the main reason for our investment in BSL Ind...

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now