Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Sandarbha Desk
Sandarbha Desk
Source: mapsofindia
  • Pradhan Mantri Suraksha Bima Yojana (PMSBY) is one of the three social security schemes that the government had announced in the 2015 Budget.
  • The other two being Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY).
  • As of September 12, 2016, nearly 9.6 crore people had enrolled under PMSBY, with almost 2 lakh joining it on a weekly basis.

What is PMSBY? 

  • An accident insurance scheme, PMSBY offers a one-year accidental death and disability cover, which can be renewed annually.

What all is covered and for how much?

  • Under PMSBY, the risk coverage available is Rs 2 lakh for accidental death and permanent total disability, and Rs 1 lakh for permanent partial disability.
  • Permanent total disability is defined as total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of an eyesight and loss of use of a hand or a foot.
  • Permanent partial disability is defined as total and irrecoverable loss of an eyesight or loss of use of a hand or foot.
  • The cover will be in addition to any other insurance plan the subscriber has. The scheme is not a Mediclaim, i.e., there is no provision for reimbursement of hospitalization expenses following an accident, resulting in death or disability.

Important inclusions and exclusions 

  • Accidents, any death or disability (as defined under PMSBY) resulting from natural calamities is covered under PMSBY.
  • While death due to suicide is not covered, that from murder is covered.
  • Partial disability without irrecoverable loss of an eyesight or loss of use of one hand or foot is not covered.
  • Also, the family gets no insurance benefit if the subscriber commits suicide.


  • All individual (single or joint) bank account holders in the 18-70 year age group are eligible to join PMSBY.
  • In case you have multiple bank accounts in one or different banks, then you will be eligible to join the scheme through one bank account only.
  • In the case of a joint account, all holders of the account can join the scheme.
  • Even NRIs are eligible, but if a claim arises, the claimed benefit will be paid to the beneficiary/nominee only in Indian currency.

How much is the premium and how to pay

  • The premium payable is Rs 12 per annum per member and will be deducted from his bank account through an ‘auto debit’ facility in one installment on or before June 1 every year.
  • However, in cases where auto debit takes place after June 1, the cover shall commence from the date of auto debit of premium by the bank.
  • The annual renewal dates shall be June 1 in subsequent years.
  • Even if one gets enrolled with more than one bank, the claim, if applicable, will be paid by only one bank and the other premium may get forfeited.
  • The premium will be reviewed based on annual claims experience.
  • However, barring unforeseen adverse outcomes, efforts would be made to ensure that there is no upward revision of the premium in the first three years.
  • Also, there won’t be any policy certificate issued to individual subscribers as the participating banks will be the master policyholders.

Where to buy the scheme from? 

  • The scheme is offered/administered through Public Sector General Insurance Companies (PSGICs) and other general insurance companies, in collaboration with participating banks.
  • The banks are free to engage any general insurance company for implementing the scheme for their subscribers.
  • To enroll, you can download the form from, and submit it to your banker.
  • Some banks have initiated an SMS-based enrollment process too.
  • It can be done through net banking also.
  • Initially, for the cover period from June 1, 2015, to May 31, 2016, the subscribers were expected to enroll and give their auto debit option by May 31, 2015, which was extended up to May 31, 2016.
  • Subscribers who wish to continue beyond the first year have to give their consent for auto debit before May 31 for successive years.
  • The cover is for a one-year period, starting June 1 to May 31. The option to join/pay by auto debit has to be given by May 31 of every year.

Till what period is the cover for 

  • The accident cover of the member will terminate/be restricted in any of the following events:

i. On attaining age 70.

ii. Closure of bank account or insufficiency of balance to keep the insurance in force.

iii. In case a member is covered through more than one account and the premium is received by the insurance company inadvertently, the insurance cover will be restricted to one account and the premium will be forfeited.

What to do in case of a claim 

  • PMSBY covers deaths caused by an accident and confirmed by documentary evidence.
  • In the case of incidents like road, rail and similar vehicular accidents, drowning, death involving any crime, etc., the accident should be reported to police.
  • In the case of incidents like a snake bite, fall from a tree, etc, the cause should be supported by immediate hospital record.
  • In the case of death of the account holder, the claim can be filed by the nominee/appointee as per the enrolment form or by his legal heir/s in case there is no nomination made by him.
  • The disability claim will be credited to the bank account of the insured bank account holder.
  • Death claims will be remitted to the bank account of the nominee/legal heir(s).
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