PMSBY vs. Corporate Health Insurance: What’s the difference?

PMSBY vs. Corporate Health Insurance

When it comes to ensuring financial security in the face of unexpected medical expenses, individuals often have various options to choose from. Two common choices are the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Corporate Health Insurance. These two options cater to different needs and have distinct features, making it essential to understand their differences before deciding which one suits your requirements best.

PMSBY scheme details:

The pmsby scheme details, Pradhan Mantri Suraksha Bima Yojana  (PMSBY) is a government-backed insurance scheme launched in 2015 as part of the financial inclusion initiative. It primarily focuses on providing insurance cover to individuals, especially those who do not have access to traditional insurance products.

  • Eligibility: PMSBY is available to all Indian citizens between the ages of 18 and 70 years. It is one of the most inclusive insurance schemes, with almost no restrictions on eligibility.
  • Coverage: The primary objective of PMSBY is to provide accidental death and disability insurance. Under the scheme, in the case of accidental death or disability, the nominee or the insured individual receives a pre-specified sum assured.
  • Premium: The premium for PMSBY is quite nominal, making it affordable for a vast portion of the population. It’s typically around Rs. 12 to Rs. 15 per annum.
  • Enrolment: Enrolling in PMSBY is straightforward and can be done through any participating bank. The annual premium is directly debited from the individual’s bank account.
  • Sum assured: PMSBY offers a fixed sum assured, which is typically set at Rs. 2 lakh for accidental death and total disability, and Rs. 1 lakh for partial disability.

Corporate health insurance:

Corporate health insurance, on the other hand, is a type of insurance provided by employers to their employees. It aims to safeguard employees’ health and well-being by covering a wide range of medical expenses.

  • Eligibility: Corporate health insurance is exclusively available to employees of a particular organisation. It is a benefit provided by the employer to attract and retain talent.
  • Coverage: This type of insurance is comprehensive, covering a variety of health-related expenses, including hospitalisation, doctor’s fees, medication, and more. It can also include coverage for dependents, such as the employee’s spouse and children.
  • Premium: The premium for corporate health insurance is typically borne by the employer. In some cases, employees might have to contribute a part of the premium, but it is generally much lower than what they would pay for an individual health insurance plan.
  • Enrolment: Employees are automatically enrolled in the corporate health insurance plan offered by their employer. They do not need to go through a separate application process.
  • Sum assured: The sum assured for corporate health insurance can vary widely depending on the organisation’s policy. It is typically higher than the coverage offered by PMSBY.

Key differences:

Purpose: PMSBY primarily provides financial support in case of accidental death or disability, whereas corporate health insurance focuses on comprehensive health coverage, including hospitalisation and medical expenses.

  • Eligibility: PMSBY is available to all Indian citizens within the specified age group, whereas corporate health insurance is limited to employees of a specific organisation.
  • Coverage: PMSBY offers a fixed sum assured for accidental death and disability, while corporate health insurance covers a broader spectrum of medical expenses, including hospitalisation, surgeries, and outpatient care.
  • Premium: The premium for PMSBY is quite affordable and paid by the individual, while corporate health insurance premiums are typically subsidised by the employer.
  • Enrolment: PMSBY requires individuals to enrol and pay the premium themselves, while corporate health insurance enrolment is automatic for employees.

In conclusion, the choice between PMSBY and corporate health insurance depends on your specific needs and circumstances. If you are an employee, corporate health insurance provided by your employer offers comprehensive coverage for medical expenses, making it a valuable benefit. On the other hand, if you are looking for basic accidental death and disability coverage at a minimal cost, PMSBY may be the better option. Ultimately, both options play a crucial role in ensuring financial security in the face of unforeseen events, but they serve different purposes and cater to distinct segments of the population.

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