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Supplement your Pradhan Mantri Suraksha Bima Yojana with a personal accident insurance

The last visit to the bank was very fruitful for Mr. Rajiv Verma, who was holding an account there for the last ten years. You are wrong if you are thinking that Mr. Verma was happy because he got new currency of Rs 2000 and Rs 500. In fact, he was satisfied because he got himself covered under the Pradhan Mantri Suraksha Bima Yojana   (PMSBY). This insurance policy promised to give him a one-year accidental death and disability cover and ensured family's financial security.

However, the question that worries me is - "Does PMSBY offer complete coverage to Rajiv?" While, it covers disability, what it excludes is hospitalization expenses. Moreover, the scheme is offered only to bank accountholders, so what about those people who are without an account?

It is good that people like Rajiv are taking steps to secure the financial future of their family and our government is also assisting them, but there are some gaps in the PMSBY coverage which need to be filled. And therefore, it is the right time to look for a personal accident insurance policy which fills all the shortcomings.

A way out- Personal Accident Insurance Policy

Do you know what is more painful and fearful than accident or disability? Seeing your family fighting financially to meet their odds! Yes, an accident or a disability not only affects a person's body, it has a direct bearing on that person's family as well. The situation becomes more painful if the breadwinner is involved in an accident. In addition to medical expenses, there is household expenditure that needs to be looked after.

So, instead of moaning over a sad situation after it occurs, it is a wise decision to take the necessary steps today by buying a personal accident insurance policy. It is a comprehensive policy which covers the risk of loss of income due to various types of disability that may happen anywhere across the globe.

It's a no brainer that when you are young, you are more exposed to several types of risks which can disrupt your otherwise smooth life than anything else.

How is personal accident policy different from PMSBY?


Personal Accident Insurance Policy


Age Limit

Any person between 18 years and 80 years

Individual (single or joint) bank account holders between 18 years and 70 years


Accidental death , accident resulting in permanent total disability, accidental hospitalization expenses, accidental hospital daily allowance

Accidental death and disability


1,3 or 5 years

1 year

Hospitalization expenses


Not Covered

Policy issuance certificate

A policy issuance certificate will be given to a policyholder

No certificate will be issued to individual subscribers, as the participating banks are master policyholders

Coverage available under a personal accident policy

The policy covers the following events:

- Accidental Death

- Permanent Total Disability

- Accidental Hospitalization Expenses Reimbursement

- Terrorism and Acts of Terrorism

A personal accident policy works wonders by bridging the gap between term and health insurance policy. A term insurance pays only when a policyholder dies, but what if the person becomes disabled? Similarly, a health insurance policy covers hospitalization expenses, but is it sufficient? What about the loss of income that a policyholder may face after an accident or disability? In all the above situations, a personal accident insurance policy helps by covering an individual in case of an accident and disability.

Is it affordable?

We all consider term insurance as the cheapest policy but the reality is different. In case of a personal accident insurance policy, for a few hundred rupees you can get coverage of several lakhs. Further, unlike other types of policies, the premium of a personal accident policy doesn't depend on the age of aninsurance applicant, as it is decided by occupation or the kind of job a person does. It means, people who are in low-risk jobs like teaching, engineering, etc. pay lower premiums than high-risk jobs like journalism, mountaineering, etc.

Here's how an insurer divides occupations under different heads:

Class 1 (Low Risk)

Class 2 (High Risk)

Class 3 (Very High Risk)



Airline Pilots





Garage Mechanic



Veterinary Doctor 

Circus Performers

Nowadays, various companies are also covering their employees under group personal accident policies. Though, it is a good move, it should not restrict you from buying an individual cover. Once you leave a job, the employer cover also ends. In addition to it, the group policy works on the whims of a company, which can be withdrawn at any time to reduce expenses.

Similarly, instead of going with a personal accident rider, opt for a comprehensive policy, which is more extensive than the former.

Though, it is good to be covered under a PMSBY, I would advise you to also go for an individual personal accident policy, which works well if you buy it along with term and health insurance. Giving a complete protection , a personal accident insurance policy ensures there is nothing left to chance in your insurance portfolio.