PMSBY – Pradhan Mantri Suraksha Bima Yojana


The Pradhan Mantri Suraksha Bima Yojana (PMSBY) stands as a vital safety net designed to protect individuals across India. This insurance scheme offers coverage against accidents, ensuring financial security during challenging times.

PMSBY - Pradhan Mantri Suraksha Bima Yojana
PMSBY – Pradhan Mantri Suraksha Bima Yojana


PMSBY is like a safety net that truly cares – that’s what PMSBY, the Personal Accident Insurance Scheme, is all about. It’s like a guardian angel for those unexpected moments, offering support in case of accidental death or disability due to accidents.

This shield of protection covers you for a year, with the option to renew each year. This heartwarming scheme is managed by dedicated government and general insurance companies, working hand in hand with banks.

Banks, like trusted friends, can choose the perfect insurance company to extend this caring plan to their customers, ensuring peace of mind for all.

Coverage Area Of PMSBY

Every person who holds a savings bank account, and falls between the ages of 18 and 70, at one of the participating banks can be a part of PMSBY.

If someone has multiple bank accounts in different places, they can only join PMSBY through one of those accounts. For verification, Aadhar will be the main document needed for the bank account.

PMSBY Period Covered

The coverage will last for a year, starting from June 1st to May 31st of the following year. To be part of this coverage, individuals need to choose the option to join and pay through automatic deduction from their designated bank account.

This decision must be made by May 31st each year. Joining after this date is possible by paying the full annual premium. Moreover, applicants can choose to enroll and have the premium automatically deducted for a longer period, as long as the scheme continues with any revised terms based on past experience.

If someone decides to leave PMSBY at any point, they can re-join using the same method in future years. People who become eligible for the scheme in the upcoming years, as well as those who were eligible but didn’t join earlier, will also have the opportunity to join while the scheme is ongoing.

PMSBY Premium

The cost is Rs. 20 per year for each member. The premium will be taken from the account holder’s bank account using the ‘auto debit’ feature.

This will happen in a single payment on or before June 1st for the annual coverage period of the scheme. But if the auto debit occurs after June 1st, the coverage will start from the date of the auto debit.

PMSBY Benefits

(a) In case of unfortunate death, the benefit amount is Rs. 2 Lakh.

(b) If there’s a total and irrecoverable loss of both eyes, loss of use of both hands or feet, or a combination of loss of sight in one eye and loss of use of a hand or foot, the benefit remains at Rs. 2 Lakh.

(c) For instances of total and irrecoverable loss of sight in one eye or loss of use of one hand or foot, the benefit is set at Rs. 1 Lakh.

Who Is Eligible For PMSBY

People who have personal bank accounts at the participating banks and are between 18 and 70 years old (including those who have completed 18 years and are closer to their next birthday), and who agree to join and set up automatic deductions as described earlier, will be included in the scheme.

Master Policy Holder Of PMSBY

The bank where a person joins will hold the main policy for all the members taking part. The process for managing and settling claims has been made straightforward and user-friendly. The general insurance company in charge of this, along with the participating banks, has developed this process together.

Termination of cover In PMSBY

The member’s accident coverage will end if any of these events occur, and no benefits will be given:

  • When the member turns 70 years old (nearest birthday).
  • If the bank account is closed or if there’s not enough balance to keep the insurance active.
  • If a member is accidentally covered by more than one account and the insurance company receives premium payments for both, the coverage will be limited to one account only. The premium for the duplicate insurance will not be refunded.
  • If the insurance coverage stops due to technical reasons like not having enough balance on the due date or administrative issues, it can be reinstated by paying the full annual premium, based on certain conditions. During this period, the coverage will be temporarily paused, and reinstating it will depend on the insurance company’s decision.
  • The participating banks will deduct the premium amount in the same month when the auto debit option is set up, preferably in May each year. They will then send the due amount to the Insurance Company within that same month.

PMSBY Administration

PMSBY, following the details mentioned above, will be managed according to the standard procedures outlined by the Insurance Company. The process of transferring information and the required format for data will be provided separately.

The participating bank will be responsible for collecting the appropriate annual premium from the account holders within the set timeframe through the ‘auto-debit’ method.

The bank will collect and hold the enrollment forms and auto-debit authorizations in the specified format. If a claim is made, the Insurance Company might ask for these documents. The Insurance Company has the right to request these documents at any point.

The acknowledgment slip could be used as both an acknowledgment slip and an insurance certificate. The performance of the scheme will be reviewed annually to make any necessary adjustments, based on experience.

Appropriation of Premium In PMSBY

  • The insurance premium you need to pay to the Insurance Company is Rs. 20 per person per year.
  • The payment for managing the administrative and operational aspects of the scheme by the Bank is now Rs. 2 per person each year for PMSBY. This amount includes the commission paid to Business Correspondents and agents.
  • The amount the insurer pays to Business Correspondents and agents is Rs. 1 per person, but this is only for new enrollments.
  • Please note: If you choose to enroll yourself voluntarily through electronic means, the money saved from the administrative cost (mentioned in point 2) will be passed on to you as a benefit. This means the insurance premium you pay (mentioned in point 1) will be reduced accordingly.
  • The scheme started on June 1st, 2015. The renewal date will be every June 1st in the following years.

The scheme might be stopped before the next renewal date if circumstances require it.


PMSBY a.k.a. Pradhan Mantri Suraksha Bima Yojana stands as a symbol of the government’s commitment to citizens’ well-being. It offers a safety net against accidents, empowering individuals to face life’s uncertainties with resilience. PMSBY not only secures lives but also embodies the nation’s efforts to create a more secure and confident future for all.

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