Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed renewable one-year personal accident insurance scheme offering Rs 2 lakh cover for accidental death or total permanent disability and Rs 1 lakh for partial permanent disability, at an annual premium of Rs 20, available to bank account holders aged 18-70.
PMSBY was launched simultaneously with PMJJBY and APY on 9 May 2015 as the accident insurance component of the government's social security tripod for low-income earners. The premium of Rs 20 per annum is among the lowest anywhere globally for accident insurance of this coverage quantum, made possible by massive scale enrollment, government support, and group insurance cost efficiencies. The Rs 20 premium has remained unchanged since launch, though periodic actuarial reviews have been conducted.
The scheme is implemented through non-life insurance companies (general insurers) empanelled with participating banks, with the master policy held by the bank. The annual premium is auto-debited from the linked savings account on 1 June each year. Eligibility covers individuals aged 18 to 70 with a savings bank account at a participating institution. Unlike PMJJBY (which caps enrollment at age 50), PMSBY extends to age 70, reflecting that accident risk can affect individuals across a broader working age range.
Coverage triggers under PMSBY are specific: the insured event must be an 'accident' as defined under the policy — a sudden, unforeseen, and involuntary event that results in injury. Death or total permanent disability (loss of both eyes, both hands, both feet, or one eye and one limb) qualifies for the full Rs 2 lakh payout. Partial permanent disability (loss of one eye or one limb) triggers a Rs 1 lakh payment. Death or disability from illness, pre-existing conditions, suicide, or self-inflicted injury is explicitly excluded, as the product covers only accidental causes.
Claim settlement under PMSBY is processed through the bank branch, with the nominee or claimant submitting the prescribed claim form, FIR copy (for accidental death), post-mortem report (if applicable), disability certificate from a government hospital (for disability claims), and other supporting documents. The insurer settles claims within 30 days of receiving complete documentation under the Insurance Regulatory and Development Authority's claim settlement guidelines.
PMSBY's cumulative enrollment crossed 45 crore accounts as of 2024, with claims paid exceeding Rs 3,500 crore. The scheme's penetration into rural and semi-urban populations has been substantial, particularly when bundled with Jan Dhan accounts opened under the Pradhan Mantri Jan Dhan Yojana. Together, PMJJBY and PMSBY provide a foundational accident and life protection layer for economically vulnerable households at a combined cost of Rs 456 per year.