₹20 Accident Cover
PM Suraksha Bima Yojana (PMSBY)
Verified Indian financial mathematics, statutory regulations, and step-by-step actionable breakdowns.
Expected Yield₹2 Lakh Accident Cover
Lock-In Tenure1 Year Renewable
Risk LevelZero Risk
Tax StatusTax-Free 10(10D)
Overview & Statutory Background
PMSBY is a government-backed accident insurance scheme providing ₹2 Lakh on accidental death or total permanent disability and ₹1 Lakh on partial permanent disability, for an annual premium of ₹20.
Key Features & Operational Guidelines
₹2 Lakh for accidental death or total loss of both eyes/limbs
₹1 Lakh for partial permanent disability
₹20 annual premium auto-debited from the bank account
Renewable every year until age 70
Who is Eligible to Invest?
- •Age 18 to 70 years with a bank account
- •One account per person across banks
Indian Taxation Breakdown
| Stage | Tax Treatment |
|---|---|
| Initial Investment | Premium is minimal; limited deduction benefit. |
| Interest & Returns | N/A. |
| Maturity / Withdrawal | Claim proceeds are tax-free. |
Advantages & Limitations
Key Advantages (Pros)
- ✓Cheapest accident insurance available in India
- ✓No medical examination
- ✓Wide bank network
Important Limitations (Cons)
- ✕Covers accidents only, not illness
- ✕Low sum insured
- ✕Cover lapses if the bank balance is insufficient on the debit date
PM Suraksha Bima Yojana (PMSBY) FAQs
No. PMSBY pays only for accidental death or disability. Pair it with PMJJBY or a term plan for natural death cover.
Calculate Compound Returns
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