Accidents can happen unexpectedly, causing financial distress to families. To provide affordable accident insurance, the Government of India launched the Pradhan Mantri Suraksha Bima Yojana (PMSBY) in 2015. This government-backed scheme offers accidental death and disability coverage at a minimal annual premium, making it accessible to all sections of society. In this blog post, we’ll cover its features, eligibility, benefits, the application process, and much more.
What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)? :
PMSBY is a personal accident insurance scheme designed to provide financial protection against accidental death or disability. It offers coverage of up to ₹2 lakh at a nominal premium of ₹20 per year. The policy is renewable annually and is managed by public and private insurance companies through banks.
Features of PMSBY :
- Launch Date: May 9, 2015
- Implementing Authority: Ministry of Finance, Government of India
- Type: Personal Accident Insurance
- Coverage Amount:
- ₹2 lakh for accidental death or permanent total disability
- ₹1 lakh for partial disability
- Premium: ₹20 per year (may change in future)
- Policy Term: One year, renewable annually
Auto-Debit: Premium is auto-debited from the bank account.
Eligibility Criteria for PMSBY :
To enrol in PMSBY, applicants must meet the following criteria:
- Age: 18 to 70 years
- Bank Account: Must have a savings bank account linked to the scheme.
- Auto-Debit Consent: Must consent to auto-debit of the annual premium from their account.
- Multiple Policies: Only one policy is allowed per person, even if multiple bank accounts exist.
Benefits of PMSBY :
Accidental Death Benefit:
₹2 lakh payout to the nominee if the policyholder dies due to an accident.
Permanent Total Disability:
₹2 lakh payout if the insured suffers total and permanent disability, such as loss of both eyes, both hands, or both legs.
Permanent Partial Disability:
₹1 lakh payout for partial disability, such as loss of one eye or one limb.
Low Premium:
Just ₹20 per year, making it the most affordable accident insurance scheme.
Widely Accessible:
Available across India through most banks and insurance providers.
Read This Also: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
How to Apply for PMSBY? :
Step 1: Contact Your Bank
- Visit the bank where you have a savings account. Most public and private sector banks offer PMSBY.
Step 2: Fill Out the Form
- Request or download the PMSBY application form from the bank’s official website.
- Download the form here jansurksha portal or visit the bank to collect the form.
- Fill out the required details, including name, age, bank account number, and nominee information.
Step 3: Submit the Form
- Submit the completed form at the bank branch or enrol through the bank’s online portal or mobile app.
Step 4: Premium Deduction
- After enrollment, the annual premium of ₹20 will be auto-debited from the bank account.
Documents Required for PMSBY :
- Aadhaar Card (for KYC)
- Savings Bank Account Details
- Duly Filled Application Form
Nominee Information
Claim Process for PMSBY :
In the event of accidental death or disability, the nominee or the insured person (if alive) can file a claim. The process is as follows:
Inform the Bank: Notify the bank where the policy is registered.
Submit the Claim Form: Fill out the claim form available from the bank or insurance company’s website.
Provide Supporting Documents:
Death certificate (in case of accidental death)
FIR or accident report
Medical report for disability claims
Verification and Payout: After document verification, the claim amount is transferred to the nominee’s or insured’s bank account.
Reasons for Policy Termination :
The policy coverage under PMSBY will be terminated in the following cases:
- Non-payment of Premium: If the annual premium is not paid due to insufficient bank account balance.
- Closure of Bank Account: If the linked savings account is closed.
- Age Limit Exceeded: If the policyholder reaches the age of 70.
Multiple Policies Found: If multiple policies are detected in the policyholder’s name.
Challenges and Limitations of PMSBY :
- Limited Coverage: Maximum coverage of ₹2 lakh may be insufficient for families needing higher financial protection.
- No Maturity Benefits: It is a pure accident insurance policy without savings or maturity benefits.
Policy Expiration: Policyholders must maintain sufficient account balances to keep the policy active
PMSBY vs Other Insurance Plans :
| Criteria | PMSBY | Personal Accident Plans (Private) |
| Premium Amount | ₹20 per year | Varies (₹500 – ₹5,000 per year) |
| Coverage Amount | ₹2 lakh | ₹5 lakh or more |
| Policy Term | One year (renewable) | Up to 5 years or more |
| Medical Check-Up | Not required | Usually required for higher coverage |
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a crucial financial safety net for millions of Indians, particularly those in low-income and unorganized sectors. Its minimal premium, hassle-free enrollment process, and accident coverage make it an essential scheme for individuals looking for basic accident insurance. While its coverage is limited, PMSBY is an ideal starting point for people seeking financial protection against accidental mishaps.
FAQs about PMSBY :
- Q: Can NRIs enroll in PMSBY?
A: Yes, provided they have a savings account in India. - Q: Is the premium refundable?
A: No, once deducted, the premium is non-refundable. - Q: Can I update my nominee?
A: Yes, you can change the nominee details by visiting your bank. - Q: What happens if I miss the premium payment?
A: The policy will lapse if the premium is not paid on time. - Q: Can I have multiple PMSBY policies?
A: No, only one policy is allowed per person.
All information provided in this blog is for general informational purposes only. We recommend verifying details from official government sources before applying to any scheme.
