May 192015

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

As we tell you – The Pradhan Mantri of India is all set to launch another flagship social security scheme: Pradhan Mantri Suraksha Bima Yojana (PMSBY) – An accidental Death and Disability insurance scheme. Here a detail review on benefits and methodology of scheme is being done. Hope this will assist you all in taking your financial decision as to go for scheme or not.

Target Beneficiary

There are two aspects of PMSBY that make it different in offering and approach.

  1. It is the sheer size and depth of inclusion to bring and get covered the maximum number of people under this scheme.
    1. Today, if an earning member of a family becomes permanently disabled or dies an accidental death, his or her family faces a life in penury and hardship, with no protection or support from any institution or group. By joining the PMSBY scheme and by paying a nominal premium of Rs. 12/- per person per year, he or she will get an insurance cover for a sum of Rs. 2,00,000/-  in case of accidental death or permanent full disability or a sum of Rs. 1,00,000/- (one lakh) in case of partial but permanent disability. The scheme will be valid for a year and it can be renewed every year.All the payments will be directly credited to the beneficiary’s account with no scope for leakages.


Any person between the age of 18 and 70 with a savings bank account and Aadhaar Card can join the scheme.

A person will need to fill out a simple form, mentioning the name of the nominee and linking the Aadhaar Card to the bank account. The person will need to submit the form each year before 1st June to continue the scheme.

With this, the account can be easily activated and the entire premium due will be auto-debited from his or her account.

In other words, all a person has to do is to open a bank account and then ensure the availability of at least Rs. 12/- before 1st June of each year to ensure automatic renewal of the scheme.

A person has the option to go in for a long-term inclusion under the scheme by instructing the bank to auto-renew the scheme every year.

Cost Benefits analysis of scheme

The following benefits are available under the scheme:

Particular of cost Amount of cost in Rs per annum Particulars of benefits Sum assured
Premium per annum per member Rs. 12 Death Rs. 200,000/-
In joint holder of account shall pay their premium separately. Total or irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eyes and loss of use of hand or foot Rs. 200,000/-
Total or irrecoverable loss of sight of one eyes or loss of use of one hand or foot Rs. 100,000/-

The cover under this scheme is in addition to cover under any other insurance scheme the subscriber may be cover under.

Tax Benefit

The entire premium paid by the subscribers will be tax free under Section 80C. Furthermore, all the proceeds received up to Rs. 1,00,000/- (one lakh) will be tax exempt under Section 10(10D).

For all the proceed amounts exceeding Rs. 1,00,000/-, a TDS at the rate of 2% of the total proceeds will apply if Form 15H or Form 15G is not submitted to the insuring agency.

Further information / assistance

For further information on Pradhan Mantri Suraksha Bima Yojana (PMSBY), please log onto: or One can also call the National toll free numbers: 1800 110 001 / 1800 180 1111.