Pradhan Mantri Suraksha Bima Yojana
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accidental insurance scheme that provides Rs 2 lakh cover for accidental death and permanent total disability, and Rs 1 lakh for permanent partial disability. The annual premium is just Rs 20, making it one of the most affordable insurance products available in India.
What Is PMSBY?
PMSBY was launched in May 2015 as part of the Jan Suraksha schemes. It provides basic accident insurance to individuals who may not be able to afford regular insurance products. The scheme is implemented through banks and insurance companies empanelled by the government.
Enrollment is done through a bank savings account. The premium is auto-debited from the account each year on June 1.
Key Features
– **Cover amount**: Rs 2 lakh for accidental death and permanent total disability; Rs 1 lakh for permanent partial disability
– **Annual premium**: Rs 20 (plus GST, currently Rs 20 flat since GST on PMSBY is nil)
– **Age eligibility**: 18 to 70 years
– **Enrollment**: through savings bank account; auto-debit of premium each year
– **Policy year**: June 1 to May 31
What Counts as Accidental Death and Disability?
The scheme covers death or disability caused by accidents, including road accidents, drowning, falls, and similar unforeseen events. Death or disability due to illness, suicide, or self-inflicted injury is not covered.
– **Permanent total disability**: loss of both eyes, or loss of use of both hands or feet, or loss of one eye and one hand or foot
– **Permanent partial disability**: loss of sight in one eye, or loss of use of one hand or foot
How to Enroll
You can enroll through your bank’s net banking portal, mobile app, or by visiting the branch and filling the PMSBY enrollment form. The premium is auto-debited from your savings account on June 1 each year.
Who Should Buy PMSBY?
PMSBY is designed for the economically weaker sections but is open to all. At Rs 20 per year, it is a valuable supplement for anyone. It is especially useful for informal sector workers, daily wage earners, farmers, and self-employed individuals who lack employer-provided accident coverage.
Practical Example
Sunil, a daily wage construction worker, enrolls in PMSBY through his Jan Dhan account. He pays Rs 20 per year. He meets with a construction accident that causes the loss of one hand. He is eligible for Rs 1 lakh under the permanent partial disability benefit. This amount helps his family manage during his recovery and rehabilitation period.
Key Takeaways
– PMSBY provides Rs 2 lakh accidental death and disability cover for just Rs 20 per year
– Available to savings account holders aged 18 to 70
– Premium is auto-debited annually on June 1
– Covers accidental death and permanent total or partial disability; illness-related deaths are not covered
– One of the most cost-effective insurance covers available in India
