Govt Scheme 2023 – Get 2 Lakhs Insurance Coverage For 20 Rs – A Scheme By Central Gov – Govt Scheme


In recent years, there has been a growing emphasis on the importance of financial security and insurance coverage, especially in the context of unforeseen accidents or disabilities. With this objective in mind, a scheme has been introduced to provide insurance coverage to individuals aged between 18 and 70 years. This essay aims to delve into the details of the scheme, highlighting its eligibility criteria, coverage benefits, premium deductions, and the participating entities involved. Furthermore, it explores the significance of Aadhar as the primary Know Your Customer (KYC) document and examines the various aspects of permanent disability covered by the scheme. By analyzing these aspects, this essay aims to shed light on the scheme’s purpose, scope, and potential benefits to its participants.

Scheme Eligibility and Coverage Period

The scheme is available to individuals within the age group of 18 to 70 years, provided they possess a bank account and give their consent to join the scheme on or before May 31st. The coverage period for this scheme spans from June 1st to May 31st, and it operates on an annual renewal basis. This means that participants must renew their enrollment each year to ensure continuous coverage. The scheme’s focus on a broad age range ensures that a significant portion of the population has access to its benefits, thereby increasing financial inclusivity.

Aadhar as the Primary KYC

As part of the scheme’s enrollment process, Aadhar is designated as the primary KYC document. Aadhar, an identification system implemented by the Government of India, provides a unique identification number to residents based on their biometric and demographic data. Utilizing Aadhar for KYC purposes streamlines the documentation process, making it more efficient and convenient for individuals seeking to join the scheme. Aadhar’s widespread adoption and its integration into various government and financial systems make it a reliable and secure means of identification.

Insurance Coverage Details

Under the scheme, participants are provided with insurance coverage for accidental death and disability. In the unfortunate event of accidental death or total disability, a claim of Rs. 2 lakh is payable to the nominee or the participant’s legal heir. Additionally, in the case of permanent partial disability, a claim of Rs. 1 lakh is payable to the insured individual. These coverage amounts serve as a safety net, offering financial support during times of distress and ensuring that the insured and their families can cope with the aftermath of an accident or disability.

Permanent Disability Coverage

The scheme’s coverage extends to both permanent total disability and permanent partial disability. Permanent total disability refers to the complete and irrecoverable loss of both eyes, both hands, both feet, or the loss of sight in one eye and the loss of use of one hand or foot. In such cases, the insured individual is eligible to claim the full coverage amount of Rs. 2 lakh. On the other hand, permanent partial disability covers the total and irrecoverable loss of sight in one eye or the loss of use of one hand or foot. For permanent partial disability, the coverage amount is Rs. 1 lakh. By incorporating these provisions, the scheme recognizes the varying degrees of disability and ensures that individuals receive appropriate compensation based on the severity of their condition.

Premium Deductions and Auto-Debit Facility

To participate in the scheme, individuals are required to pay a nominal premium of Rs. 20 per annum. This premium amount is deducted from the participant’s bank account through the auto-debit facility. The auto-debit feature simplifies the payment process by automatically deducting the premium from the insured individual’s bank account in a single installment. This seamless payment mechanism helps ensure timely premium payments, reducing the chances of coverage lapses and allowing participants to enjoy uninterrupted benefits throughout the coverage period.

Participating Entities and Tie-ups

The scheme is offered by Public Sector General Insurance Companies and other General Insurance Companies that are willing to provide the product on similar terms with necessary approvals and tie-ups with banks. This multi-participant approach enhances competition and choice, encouraging insurance providers to offer the scheme’s benefits with attractive terms and conditions. The involvement of both public sector and private insurance companies demonstrates the collaborative effort to extend insurance coverage to a wider audience and promote financial security among the masses.

Coverage Details:

What is Covered? What is not Covered?
  • Permanent total disability with a coverage of Rs.2 lakh
  • Permanent partiality disability with a coverage of Rs.1 lakh
  • Accident leading up to policyholder’s death with coverage if Rs.2 lakhs
  • Suicide deaths are not covered
  • partial disability without irrecoverable loss
  • Non-permanent disabilities are not covered

Banks providing Pradhan Mantri Suraksha Bima Yojana Scheme:

  • Allahabad Bank
  • Axis Bank
  • Bank of India
  • Bank of Maharashtra
  • Bharatiya Mahila Bank
  • Canara Bank
  • Central Bank
  • Corporation Bank
  • Dena Bank
  • Federal Bank
  • HDFC Bank
  • ICICI Bank
  • IDBI Bank
  • IndusInd Bank
  • Kerala Gramin Bank
  • Kotak Bank
  • Oriental Bank of Commerce
  • Punjab and Sind Bank
  • Punjab National Bank
  • South Indian Bank
  • State Bank of Hyderabad
  • State Bank of India
  • State Bank of Travancore
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank


In conclusion, the scheme providing insurance coverage for accidental death and disability serves as a crucial initiative to ensure financial security for individuals in the age group of 18 to 70 years. By adhering to the eligibility criteria and enabling auto-debit for premium deductions, participants can benefit from a comprehensive coverage plan. The scheme’s reliance on Aadhar as the primary KYC document streamlines the enrollment process, while the coverage amounts for accidental death and disability cater to the varying needs of individuals facing different degrees of permanent disability. With the participation of multiple insurance companies and tie-ups with banks, the scheme aims to maximize accessibility and foster healthy competition in the insurance market.

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