Pravasi Bharatiya Bima Yojana is basically an insurance that was formulated to provide insurance cover of a minimum amount of Rs.2.00 lakhs which is payable to the Indian emigrant (nominee) or the legal heir in the event of permanent disability or death of the Indian emigrant who work abroad. Provided the person has obtained the necessary emigration clearance from the concerned POE (Protector of Emigrants).
This insurance policy was actually framed on the recommendation of the Honorable Prime Minister of India on the 9th January, 2003. After the recommendation of the Honorable Prime Minister of India, notification for introducing the "Pravasi Bharatiya Bima Yojana was issued on 13th of November, 2003. This scheme actually came into force on the 25th of December, 2003. This insurance policy is an important product of The New India Assurance Co. Ltd.
This insurance policy is valid for a period of two years or the actual period of the work contract whichever less is. In the event, if the concerned employee is not received at all by the employer on his arrival to the work destination abroad or if the employment of the employer is terminated without any fault of the employer within three months of his joining date or if there is any change in the employment contract to the employer’s disadvantage, then this policy will make necessary arrangements to reimburse one way economy class airfare. The reimburse will be provided only after the grounds of repatriation (as per the employee) are certified by the concerned Indian Mission or Post.