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.
Overview of Pradhan Mantri Suraksha Bima Yojana (PMSBY)
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.
What is the PMSBY Scheme?
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:
- Only covers accidental death and disability.
- Available through any savings bank account.
- Equal benefits to every subscriber.
- Easy enrolment and renewal procedure.
PMSBY Full Form and Purpose
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.
Why the Government Introduced PMSBY
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:
- Enhancing financial inclusion.
- Lessening the financial strain after an accident.
- Promoting insurance awareness.
- Assisting families in times of emergencies.
Key Features of the PMSBY Policy
The PMSBY policy is designed in such a way that it is simple and comprehensible even to those who have never purchased insurance before.
Coverage Amount
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 |
₹2,00,000 |
Permanent Partial Disability |
₹1,00,000 |
This fixed benefit design makes it transparent and consistent to all the subscribers.
Accidental Death & Disability Benefits
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.
PMSBY Premium Details
The low PMSBY premium is one of the most appealing features of the scheme.
- Annual premium is ₹20
- Charged once per year
- Auto-debited from the associated bank account.
This nominal price enables both rich and poor people to get the scheme without straining their budgets.
Annual Coverage and Auto-Debit Facility
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.
Benefits of the Pradhan Mantri Suraksha Bima Yojana
The plan provides long-term gains that are practical and go beyond the basic insurance cover.
Financial Protection Against Accidents
Accidents may interfere with revenue and stability. The scheme payout assists families to cover both short-term and long-term costs, which include:
- Medical bills
- Daily household needs
- Education costs
- Outstanding loans
Low-Cost Annual Premium
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.
Accessibility for All Bank Account Holders
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.
Eligibility Criteria for PMSBY
The eligibility requirements are easy and are aimed at covering a large population base.
Age Limit
To enrol, the applicant must:
- Be at least 18 years old
- Not exceeding 70 years of age
The coverage is automatically terminated when the insured reaches the maximum age limit.
Nationality Requirements
The candidates should be Indian citizens and have a savings account in India.
Can NRIs Apply for PMSBY?
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.
What is Covered Under PMSBY Insurance?
Insurance coverage under PMS is limited to accidental events.
Accidental Death
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
Permanent total disability encompasses such conditions as:
- Loss of both hands
- Loss of both feet
- Loss of sight in both eyes
- Loss of one hand and one foot
The amount of coverage is awarded in full to the insured in these instances.
Permanent Partial Disability
Permanent partial disability includes:
- Loss of one eye
- Loss of one hand or one foot
In this instance, half the amount insured is payable.
What is Not Covered Under PMSBY?
The scheme has obvious exclusions to prevent misuse and misunderstanding.
Not covered under the policy:
- Death due to natural causes
- Illness-related death
- Suicide or intentional self-harm
- Disability caused by disease
- Death caused by alcohol or drugs.
It is significant to learn about exclusions before admission.
PMSBY Premium: Charges, Payment Methods & Renewal
The premium structure is clear and simple to handle.
Annual Premium Breakdown
Description |
Amount |
Base Premium |
₹20 |
Additional Charges |
Nil |
Total Annual Cost |
₹20 |
Auto-Debit Timelines
- The payment of the premium is made prior to the commencement of the policy.
- A sufficient balance should exist.
- An unsuccessful debit can lead to a policy lapse.
PMSBY Renewal Process
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.
PMSBY Renewal Charges Explained
There are no hidden charges. Only the fixed PMS by premium is deducted annually.
Documents Required for PMSBY Scheme Enrollment
Minimal documentation is required to make enrollment easy.
Common documents include:
- Aadhaar card ora valid ID
- Savings bank account details
- Nominee information
- Consent for auto-debit
Banks may request additional verification if necessary.
How to Apply for Pradhan Mantri Suraksha Bima Yojana?
Enrollment can be done through multiple channels.
Applying Through Banks
Offline application steps:
- Visit your bank branch
- Request the PMSBY form
- Fill in personal and nominee details
- Submit signed consent for auto-debit
Applying Through Insurance Companies
Some insurance partners assist banks in processing enrollments. The policy, however, remains linked to the bank account.
Online & Mobile Banking Enrollment Steps
Many banks support digital enrollment:
- Log in to net banking or the mobile app
- Navigate to insurance schemes
- Select PMSBY
- Confirm details and submit consent
PMSBY Claim Process: Step-by-Step Guide
The claim process is structured to reduce delays and confusion.
Who Can File the Claim?
- Nominee in case of death
- Insured individual in case of disability
Required Claim Documents
Documents generally required include:
- Duly filled claim form
- Death certificate or disability certificate
- FIR or police report
- Hospital or post-mortem report
- Bank account details
Claim Settlement Timelines
After submission and verification, claims are typically settled within a few weeks, subject to document completeness.
How Beneficiaries Can Claim the Insurance Amount
Claims are submitted through the bank where the insured was enrolled. The bank forwards documents to the insurer for processing.
Does PMSBY Cover Death by Murder?
Death due to murder may be covered if it is classified as accidental. Each case is reviewed based on legal and police reports.
Termination of PMSBY Coverage
Coverage may end under certain conditions.
When the Policy Gets Cancelled Automatically
Automatic cancellation may occur if:
- The bank account is closed
- Insufficient balance at renewal
- Multiple enrollments detected
- Insured crosses the maximum age
How to Reactivate Coverage
Coverage can sometimes be restored by:
- Re-enrolling through the bank
- Providing fresh consent
- Ensuring sufficient balance
PMSBY vs PMJJBY: Key Differences You Should Know
Aspect |
PMSBY |
PMJJBY |
Type of Insurance |
Accident |
Life |
Annual Premium |
₹20 |
₹436 |
Coverage Amount |
₹2 lakh |
₹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.
PMSBY Toll-Free Number & Customer Support
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.
FAQs
What is the eligibility age limit for PMSBY?
Applicants must be between 18 and 70 years of age.
What is the annual premium amount for PMSBY?
The annual PMS by premium is ₹20.
Does PMSBY cover death due to murder?
Yes, if the death is classified as accidental based on an official investigation.
Can NRIs apply for the PMSBY scheme?
NRIs with an Indian savings bank account may apply, subject to scheme rules.
How can beneficiaries claim the PMSBY insurance amount?
Beneficiaries must submit the claim through the insured person’s bank along with the required documents.
