Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme launched in 2015 to provide affordable insurance coverage to Indian citizens.

The scheme offers financial protection against accidental death and disability at an annual premium of just rupees 20. Any individual between 18 and 70 years of age with a savings account can enroll in the PMSBY scheme.

The policy is renewed every year through auto-debit from the subscriber’s bank account. Due to its low premium and simple enrollment process, the PMSBY policy has become one of India’s largest social security schemes.

What is the PMSBY Policy?

The PMSBY policy is an accident insurance policy that provides financial assistance to the insured person or their family in case of accidental death or disability. Unlike life insurance, the scheme covers only accident-related events and does not provide benefits for natural death or illnesses.

Under the PMSBY policy, the government has partnered with insurance companies and banks to make accident insurance accessible to every citizen at a very affordable cost.

The scheme will cover for one year and is renewable from year to year.

Pradhan Mantri Suraksha Bima Yojana Scheme Details

Pradhan Mantri Suraksha Bima Yojana was launched by the Government of India in May 2015. The policy provides insurance coverage of up to ₹2 lakh and is available to individuals aged between 18 and 70 years. The premium is automatically deducted from the subscriber’s savings bank account every year.

PMSBY policy period runs from 1 June to 31 May. Subscribers only need to maintain a sufficient balance in their bank accounts to continue receiving insurance benefits.

Features of Pradhan Mantri Suraksha Bima Yojana

1. Premium

The annual premium for PMSBY is rupees 20 per subscriber. The amount is deducted automatically from the linked bank account once every year. Since the premium is very low, the scheme is affordable for people from all income groups.

2. Coverage amount

PMSBY provides accident insurance coverage of up to 2 lakh. In the event of accidental death or permanent total disability, the insured person or nominee receives 2 lakh. In case of partial permanent disability, the compensation amount is 1 lakh rupees.

3. Eligibility

Any Indian citizen between 18 and 70 years of age can join the scheme. The applicant must have a savings bank account or post office account and must provide consent for auto-debit of the premium amount.

4. Payment mode

The premium amount is paid through auto-debit from the subscriber’s bank account. Once enrolled, the amount is automatically deducted every year, making the renewal process simple and convenient.

5. Renewal

PMSBY policy is renewed annually. The insurance cover continues as long as the subscriber maintains a sufficient balance in the account and allows the premium to be deducted before the renewal date.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) Benefits

a. Tax benefits

PMSBY does not provide any specific tax deduction on the annual premium amount. However, the claim amount received by the nominee or beneficiary is generally exempt from tax according to the applicable income tax provisions.

Moreover, the premium paid will also be tax-free under Section 80C of the Income Tax Act.

b. Low premium

The annual premium of ₹20 makes the PMSBY policy one of the most affordable insurance schemes in India. The low cost allows even economically weaker sections to obtain accident insurance coverage.

What is covered and what is not covered in the PMSBY Policy

PMSBY provides coverage only for accidents. The scheme pays compensation in cases of accidental death, permanent total disability, and certain forms of permanent partial disability. Loss of both eyes, loss of both hands or feet, or loss of one eye along with one limb are covered under the policy.

However, natural death, death caused by illnesses, suicide, and self-inflicted injuries are not covered under the scheme. Since PMSBY is strictly an accident insurance policy, medical conditions and non-accidental causes of death are excluded.

How to apply for the PMSBY scheme?

Individuals can apply for the PMSBY scheme through their bank branch, internet banking portal, mobile banking application, or participating post offices. During enrollment, the applicant must provide consent for automatic premium deduction and nominate a beneficiary.

Once the application is approved and the premium is deducted, the insurance cover becomes active for the policy year.

How to claim PMSBY?

If the insured person dies due to an accident, the nominee must inform the bank and submit the required claim documents, including the death certificate and accident-related documents. In disability cases, medical certificates and disability documents must be provided.

After the documents are verified, the insurance company processes the claim and transfers the compensation amount directly to the beneficiary’s bank account.

Exclusion

The major exclusions include suicide or suicidal attempts under the influence of drugs or liquor, intentional self-injury, or loss arising from an act due to a breach of law with or without criminal intent.

Termination of PMSBY Insurance cover

The individual will not be entitled to any benefit, and the accident cover will get terminated in case of any of the following events-

1. In case the individual attains 70 years of age.

2. The account has been closed as there are insufficient funds in the account to keep the insurance active.

3. When a person is covered by more than one account. Insurance cover will be limited to only one account, and the premium on other accounts will be forfeited.

4. When the insurance cover is ceased due to any technical reasons like insufficiency of funds on the due date or any administrative issues, the same can be reinstated on receipt of the full annual premium (subject to conditions that may be laid down).

The risk cover will be suspended during this period, and reinstatement of risk cover will be at the sole discretion of the Insurance Company.

PMSBY vs PMJJBY

Bottomline

Pradhan Mantri Suraksha Bima Yojana is a low cost accident insurance scheme that provides financial protection against accidental death and disability. Although the coverage amount may not be enough as a complete insurance solution, it can offer valuable support to families during difficult times.

With its affordable premiums, simple enrollment process, and nationwide reach, PMSBY has become an important social security initiative for millions of Indians. Along with broader national initiatives such as Make in India that focus on economic growth and development, schemes like PMSBY contribute towards building greater financial security and social protection across the country.

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Frequently Asked Questions (FAQs)