PM Suraksha Bima Yojana Offers ₹2 Lakh Accident Cover For Just ₹20 A Year, Here’s How It Works

In a country where unexpected accidents can instantly disrupt family finances, affordable insurance plays a crucial role in financial planning. Many people remain unaware that a government-backed accident insurance scheme offers substantial protection at a cost lower than a cup of tea. With automatic annual renewal, wide eligibility and clearly defined benefits, this scheme is designed to provide financial relief during life-altering situations. According to experts, understanding how this policy works can help families secure essential protection with minimal effort and expense.

What Is The Government Accident Insurance Scheme

The Pradhan Mantri Suraksha Bima Yojana is a government-supported accident insurance programme created to provide financial assistance in the event of accidental death or disability. It focuses on ensuring that individuals and their families are not left vulnerable after unforeseen incidents. The scheme is linked directly to a bank or post office savings account, making enrolment and premium payment straightforward. According to financial experts, its simplicity and affordability make it one of the most accessible insurance options available today.

Extremely Affordable Annual Premium

One of the most striking features of this accident insurance scheme is its cost. The annual premium is just ₹20 per year, which is automatically deducted from the policyholder’s linked savings account. The auto-debit typically takes place on or before 1 June each year, ensuring continuity of coverage without requiring manual renewal. Experts point out that such a low premium removes a major barrier that often prevents individuals from opting for insurance coverage.

Coverage Period And Automatic Renewal

The insurance coverage runs for one year at a time, starting from 1 June and ending on 31 May of the following year. As long as the account holder maintains sufficient balance and provides consent for auto-debit, the policy is renewed automatically each year. This ensures uninterrupted protection without the need for repeated applications. According to experts, automatic renewal reduces the risk of accidental lapses that could leave families exposed.

Financial Support In Case Of Accidental Death

In the unfortunate event of the policyholder’s accidental death, the scheme provides financial compensation of ₹2 lakh to the nominated beneficiary. This amount can help families manage immediate expenses and financial obligations during a difficult time. Experts emphasise that while the sum may not replace long-term income, it offers vital short-term relief when families are most vulnerable.

Benefits For Severe Disability

The scheme also offers coverage for severe and permanent disabilities resulting from accidents. If the insured individual suffers total and irrecoverable loss of both eyes, both hands, both feet, or loss of sight in one eye along with loss of a hand or foot, a compensation of ₹2 lakh is payable. According to insurance experts, this provision recognises the long-term financial challenges associated with permanent disabilities and aims to provide meaningful support.

Partial Disability Coverage Explained

For partial disabilities such as loss of vision in one eye or permanent loss of use of one hand or one foot, the scheme provides compensation of ₹1 lakh. This benefit can help cover medical costs, rehabilitation expenses or loss of income. Experts note that including partial disability coverage makes the scheme more comprehensive and practical for real-world accident scenarios.

Who Can Enrol In The Scheme

Individuals between 18 and 70 years of age are eligible to enrol, provided they have an active bank or post office savings account and consent to auto-debit of the premium. The wide age range allows working professionals, self-employed individuals and even senior earners to participate. According to experts, linking the scheme to existing savings accounts simplifies access and boosts participation.

When Does The Coverage End

The insurance coverage ends when the policyholder turns 70 years old, closes the linked savings account, or fails to maintain sufficient balance for premium deduction. It is also important to note that even if a person enrols through multiple accounts, the maximum insurance coverage remains capped at ₹2 lakh. Experts advise maintaining adequate account balance to avoid accidental policy termination.

Why This Scheme Is Important

For a negligible annual cost, this accident insurance scheme provides meaningful financial protection against some of life’s most unpredictable risks. It is especially relevant for individuals working in physically demanding or high-risk environments. According to experts, combining this policy with other insurance plans can significantly strengthen a family’s overall financial safety net without adding financial strain.

Disclaimer: This article is for information purposes only. The views, suggestions and explanations shared are based on general understanding and expert opinions. Readers are advised to consult financial or insurance professionals before making any insurance-related decisions.