What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
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Pradhan Mantri Suraksha Bima Yojana is the government-sponsored accident insurance scheme that was established to guarantee financial stability in the event of unexpected accidents. It is designed specifically to serve individuals who may not have the capacity to purchase costly insurance products, but need a stable cover. The program targets simplicity, affordability, and availability everywhere in the country.
Commonly known as PMSBY, this scheme ensures that even a small annual contribution can offer meaningful coverage. It operates via the available banking systems, and enrollment is easy; it does not involve complicated processes. To millions of households, it serves as a simple safety net in hard times as a result of accidental death or disability.
The scheme was introduced to bridge the insurance gap in India, especially among low-income and middle-income groups. Accidents do not discriminate, and this initiative aims to make sure financial support is available when it is needed the most.
The PMSBY scheme is a one-year renewable personal accident insurance programme. It provides insurance against accidental death and permanent disability. The policy is done on an annual basis, and payment should be renewed every year to keep the benefits.
Some important factors to remember about the PMSBY Scheme are:
PMSBY is an acronym that means Pradhan Mantri Suraksha Bima Yojana. The essence of the scheme is to offer affordable accident insurance cover to a significant proportion of the population.
It intends to cushion individuals and their families against unexpected financial burden due to accidents, and more so, when the victim is the main breadwinner.
The government recognised that a large fraction of the population was uninsured or underinsured. Lack of coverage meant that many families could not afford to cover the expenses of accidents.
Key reasons for introducing the scheme include:
The PMSBY policy is designed in such a way that it is simple and comprehensible even to those who have never purchased insurance before.
The amount of coverage remains constant and is not dependent on profession, income, or location.
Type of Claim
Sum Assured
Accidental Death
₹2,00,000
Permanent Total Disability
Permanent Partial Disability
₹1,00,000
This fixed benefit design makes it transparent and consistent to all the subscribers.
The PMSBY insurance compensates in case of death or irreversible disability due to an accident. Permanent total disability generally involves the loss of both eyes or both limbs, and partial disability involves the loss of one eye or one leg.
After verification, the amount of the claim is directly credited to the bank account of the beneficiary.
The low PMSBY premium is one of the most appealing features of the scheme.
This nominal price enables both rich and poor people to get the scheme without straining their budgets.
The period of coverage is one year, between 1st June and 31st May. The premium is automatically deducted with the auto-debit facility, as long as there is an adequate balance.
This option eliminates the chances of forgetting renewals and ensures that there is continuity of protection.
The plan provides long-term gains that are practical and go beyond the basic insurance cover.
Accidents may interfere with revenue and stability. The scheme payout assists families to cover both short-term and long-term costs, which include:
The scheme is also one of the low-cost accident insurance covers in the market at only 20 rupees per annum. Such low entry cost promotes participation by workers in informal sectors, daily wage earners, as well as small business owners.
The plan is open to any person who has a savings account. Both the rural and the urban population are eligible to enrol without specialised insurance knowledge.
The eligibility requirements are easy and are aimed at covering a large population base.
To enrol, the applicant must:
The coverage is automatically terminated when the insured reaches the maximum age limit.
The candidates should be Indian citizens and have a savings account in India.
NRIs are eligible provided they have a savings account in an Indian bank. Claims are, however, settled in Indian currency and in accordance with the scheme guidelines.
Insurance coverage under PMS is limited to accidental events.
In case the insured dies as a direct consequence of an accident, the nominee gets the entire amount assured. The cause of death should be accidental and must be backed by official documentation.
Permanent total disability encompasses such conditions as:
The amount of coverage is awarded in full to the insured in these instances.
Permanent partial disability includes:
In this instance, half the amount insured is payable.
The scheme has obvious exclusions to prevent misuse and misunderstanding.
Not covered under the policy:
It is significant to learn about exclusions before admission.
The premium structure is clear and simple to handle.
Description
Amount
Base Premium
₹20
Additional Charges
Nil
Total Annual Cost
The policy renews automatically every year through the auto-debit system. No fresh documents are required unless there is a change in the bank account or the nominee.
There are no hidden charges. Only the fixed PMS by premium is deducted annually.
Minimal documentation is required to make enrollment easy.
Common documents include:
Banks may request additional verification if necessary.
Enrollment can be done through multiple channels.
Offline application steps:
Some insurance partners assist banks in processing enrollments. The policy, however, remains linked to the bank account.
Many banks support digital enrollment:
The claim process is structured to reduce delays and confusion.
Documents generally required include:
After submission and verification, claims are typically settled within a few weeks, subject to document completeness.
Claims are submitted through the bank where the insured was enrolled. The bank forwards documents to the insurer for processing.
Death due to murder may be covered if it is classified as accidental. Each case is reviewed based on legal and police reports.
Coverage may end under certain conditions.
Automatic cancellation may occur if:
Coverage can sometimes be restored by:
Aspect
PMSBY
PMJJBY
Type of Insurance
Accident
Life
Annual Premium
₹436
Coverage Amount
₹2 lakh
Eligible Age
18–70
18–50
Nature of Cover
Accidental only
All causes
Both schemes complement each other and can be subscribed to together.
Subscribers can contact their bank branch for assistance. Most banks also provide customer care support for enrollment, renewal, and claims.
Insurance partners associated with the scheme also assist with claim-related queries.
Applicants must be between 18 and 70 years of age.
The annual PMS by premium is ₹20.
Yes, if the death is classified as accidental based on an official investigation.
NRIs with an Indian savings bank account may apply, subject to scheme rules.
Beneficiaries must submit the claim through the insured person’s bank along with the required documents.
