Insurance Claims For COVID-19 Deaths Only Under PMJJBY, Not PMSBY

A viral message claiming that insurance benefits for COVID-19 deaths can be claimed under two of the PM's Suraksha Yojana Schemes, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) is misleading.

BOOM found that only PMJJBY covers COVID-19 deaths albeit with certain caveats. The scheme is only applicable to people between the ages of 18-55 who have voluntarily signed up for the scheme that was launched in 2015.

BOOM confirmed with operators of the national toll-free helpline that PMSBY does not cover COVID-19 deaths. This scheme only covers accidental deaths.

This message comes at a time when India is reporting more than 1,000 deaths daily due to COVID-19. Insurance companies were asked to modify their health insurance policies to include expenses incurred for COVID-19 treatment in a Corona Rakshak Policy in July 2020.

The viral message, meant as an advisory to make people aware about the two existing schemes, describes their premiums in detail.

The message reads,"If someone in close relative / friends circle has died due to Covid-19 or for any reason, ask the bank for an account statement or passbook entry from 01-04 to 31-03 of the financial year. Seeing the entry of Rs. 12/- or Rs. 330/- , mark it,Go to the bank and Claim for Insurance. My Humble Request to All of You is that if such cases happen around you. "

BOOM received the message on its WhatsApp helpline requesting verification.

The claim is also viral on Facebook. View all the posts here.

Fact Check

BOOM contacted the PMJJBY and PMSBY national helplines to clarify whether COVID-19 deaths are covered under both the schemes. Compensation for COVID-19 deaths can be claimed under PMJJBY but only after a certain set of conditions are met with while the PMSBY does not cover COVID-19 deaths.

In 2015, Prime Minister Narendra Modi launched two schemes under his Jan Dhan- Jan Suraksha Yojana initiatives for providing social security at affordable premiums for citizens across the country having savings bank accounts.

PMJJBY

The Pradhan Mantri Janjeevan Jyoti Bima Yojana (PMJJBY) provides an annually renewing life insurance at a meagre premium for Rs. 330. The scheme provides a cover of Rs. 2 lakh rupees for a period of a year between June 1 and May 31, annually. Claims will be settled for deaths due to any reason under this scheme.

Every year, Rs.330 are auto-debited from saving accounts of those who voluntarily apply for the scheme. As the scheme follows the guidelines prescribed by LIC, COVID-19 deaths are included in the ambit of reasons where the claim is applicable.

However, this scheme ceases to function if the claimant does not have a bank account or does not belong to the 18-55 age group. COVID-19 deaths of people older than 55 are not liable to benefit from this scheme.

People claiming for compensation under this scheme need to file their claims with their respective banks within 30 days.

PMSBY

The Pradhanmantri Suraksha Bima Yojana (PMSBY) ,on the other hand,can only be availed in cases of accidental deaths or permanent disability. Accidental death, according to the Insurance Regulatory and Development Authority, means a death caused by sudden, unintended and fortuitous external and visible event.

However, under this scheme, COVID-19 deaths are not considered as accidental deaths.

This scheme covers a population of 18-75 at an affordable premium of Rs.12 per annum. Similar to the PMJJY, the scheme provides a cover of Rs. 2 lakh, has to be voluntarily signed up for and the amount is auto-debited annually.

BOOM contacted the national-toll free helpline wherein the operator emphasised that COVID-19 deaths are not accidental under the current guidelines