The Pradhan Mantri Suraksha Bima Yojana (PMSBY) scheme, launched in May 2015, aimed to provide financial security and insurance coverage to the economically weaker sections of the society. The scheme is an accidental death and disability insurance cover that provides a sum assured of Rs. 2 lakh in case of accidental death or permanent total disability and Rs. 1 lakh in case of permanent partial disability. The scheme was launched with the objective of reducing the burden of medical expenses on the poor and supporting them in times of unforeseen circumstances.
The scheme has had a significant impact on the economic and social welfare of people. It has provided a safety net to families of the insured and has been instrumental in reducing the number of people without any insurance cover. The scheme has also led to an increase in financial literacy among the people, as they have become more aware of the importance of insurance cover and the benefits that it provides.
However, despite its many benefits, the PMSBY scheme has its limitations. Firstly, the coverage provided by the scheme is limited to accidental death and disability. It does not cover any other illnesses or medical expenses. Secondly, the premium charged for the scheme is low (Rs. 12 per annum), which makes it difficult for insurance companies to sustain the scheme. This has led to poor implementation of the scheme in many parts of the country.
Moreover, the low premium charged for the scheme also means limited coverage and that the insured may not get the full sum assured in case of a claim. The claim process is tedious and often involves a lot of paperwork and documentation, which makes it difficult for the poor to avail of the scheme's benefits.
To make the scheme more effective, it is essential to increase the sum assured provided by the
scheme and expand the coverage to include other illnesses and medical expenses. The premium charged for the scheme should also be revised to make it sustainable for insurance companies and provide adequate coverage to the insured.
The government should collaborate with insurance companies and other stakeholders to increase awareness about the PMSBY scheme and its benefits. They should also simplify the claim process and make it easier for people to avail the scheme's benefits. This would ensure that the benefits of the PMSBY scheme reach the intended beneficiaries and help in creating a more inclusive and equitable society.
In conclusion, the PMSBY scheme is a step in the right direction towards providing financial security and insurance cover to the poor and economically weaker sections of society. However, more needs to be done to make the scheme more effective and sustainable. The government and insurance companies should work together to expand the coverage and revise the premium charged and simplify the claim process to ensure that the scheme's benefits reach the intended beneficiaries.
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