PRADHAN MANTRI SURAKSHA BIMA YOJANA

PRADHAN MANTRI SURAKSHA BIMA YOJANA

Introduction

Prime Minister Suraksha Bima Scheme (PMSBS) or PMSBY is an “Accident Insurance” scheme established by the government of India to provide insurance cover to Indians.
This scheme provides death and disability cover due to an accident.
The yearly premium is only Rs.20 for the coverage of Rs.2.00 lakhs.
No medical checkup required to join the scheme.
There is no waiting period in this scheme. It means death or disability will be covered from day 1 of joining the scheme.
The scheme was effective from 01-June-2015 onwards.
NRI can join the scheme.
Income tax benefits.

Objectives of PMSBS

Work Process

You have to join the scheme in a bank or post office and need to pay yearly premium of Rs.20 to get accident insurance cover of Rs.2.00 lakhs.
This scheme provides accident insurance cover for 1-year only. Hence you need to renew the policy every year to have insurance cover. The maximum age of renewal is 70-years, after that you cannot renew the policy.
In case of unfortunate death or disability due to an accident during the coverage period, your nominees or account holder (as applicable) will get a lump sum amount of Rs.2.00 lakhs.

Eligibility

You must have saving account in a bank or post office.
Age should be 18-70 years. You have to renew the policy every year.
At any time you can have only 1 policy under this scheme.
You can join this scheme even have other accident insurance policy.
The scheme’s insurance coverage period is for 1 year from 1^st June to 31^st May, hence it is recommended to join the scheme on or before 31^st

Death, Disability & Maturity Benefits

Death benefits- 2.00 lakh. This scheme does not cover suicide incidents.
Disability benefits- you will receive Rs.2.00 lakh in case of total and irrevocable loss of both eyes, total and irrevocable loss of both hands, total and irrevocable loss of both feet, loss of one eye and one hand, loss of one eye and one foot.
No maturity benefits.

Income Tax Benefits

Old tax system- yearly premium is eligible for tax deduction under section 80C of Income tax Act. The death or disability cover of Rs.2.00 lakh will also get exemption under section 10D.
New tax system- yearly premium is not eligible for tax deduction, but death or disability covers of Rs.2.00 lakh will get exemption under section 10D.