What is the Full Form of PMSBY – Features, Benefits and Eligibility

PMSBY Full Form

PMSBY full form is Pradhan Mantri Suraksha Bima Yojana, a government accident insurance scheme for individuals holding bank accounts between the ages of 18 and 70 years. The insurance scheme covers accidental death, and permanent or partial disability, and comes with an annual premium obligation of just ₹20 automatically debited from the registered bank account of beneficiary.

Here are the coverage details:

Features of PMSBY

• Accidental insurance coverage of up to ₹2 lakh at an extremely nominal annual premium of ₹20
• Tax deduction benefit under Section 80C of the I-T Act on premiums paid
• No tax on PMSBY sum received up to ₹1 lakh under Section 10(10D) of the I-T Act
• Availability of a long-term policy or an annually renewable policy
• Annual premium amount directly debited from the linked savings account
• Multiple public and private banks, alongwith insurers offer the PMSBY scheme

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Benefits of PMSBY

• Extremely cost-effective accidental insurance coverage of up to  ₹2 lakh, backed by the government
• Financially helpful for dependents in the unfortunate event of the subscriber’s death in an accident
• Auto-debit for premiums aids convenient premium payments minimising the possibility of policy lapse due to late payment
• Flexibility for subscribers to discontinue their PMSBY policy as per their wish
• Large network of banks and insurers offering the insurance policy
• Multiple tax benefits

PMSBY Eligibility Criteria

• Any individual between 18 years and 70 years with a valid Aadhaar
• The subscriber must have a savings bank account linked to his/her Aadhaar
• If bank account is not linked with Aadhaar, the copy of the same needs to be attached with the PMSBY application form
• Subscribers must join the PMSBY scheme with a single bank account
• All account holders of a joint account can join the scheme

Final Word

The Pradhan Mantri Suraksha Bima Yojana or PMSBY is a valuable social security scheme that aims to provide affordable insurance coverage against accidental death or injury to all sections of society. By enrolling in this scheme, individuals can protect themselves and their families from the financial burden of unexpected events.

That said, if you’re looking for a higher coverage against hospitalisation expenses, you may choose Navi Health Insurance for sum insured up to ₹1 crore with premiums starting at just ₹235 per month. Just download the Navi app, and start your policy in a few minutes in a 100% paperless manner!