PM Suraksha Bima Yojana: Accident Insurance at Rs 20

Overview

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme launched in May 2015 under the Ministry of Finance. It provides affordable accidental death and disability coverage to bank account holders across India. The annual premium is just Rs 20, making it accessible to low-income groups.

Objective

The scheme was introduced to extend insurance coverage to the large uninsured population in India. It aims to provide a basic financial safety net to families in the event of accidental death or permanent disability of the primary earner.

Benefits

• Rs 2 lakh coverage for accidental death or total permanent disability
• Rs 1 lakh coverage for partial permanent disability
• Annual premium of only Rs 20, auto-debited from the bank account
• Coverage period from 1 June to 31 May each year, renewable annually
• Simple claim settlement process through the participating bank

Eligibility

• Age between 18 and 70 years
• Must hold an active savings bank account with a participating bank
• Aadhaar must be linked to the bank account (primary KYC)
• Can enroll in only one account if holding multiple bank accounts

Exclusions

• Death or disability due to suicide or self-inflicted injury
• Death or disability arising from criminal acts by the insured
• Accidents under the influence of drugs or alcohol
• Accidental injuries arising out of war or nuclear risks
• Non-accidental deaths (natural causes, illness) are not covered

Application Process

1. Visit your bank branch, net banking portal, or mobile banking app
2. Submit a simple enrollment form or opt in through the bank’s digital platform
3. Provide Aadhaar details for KYC verification
4. Authorize auto-debit of the Rs 20 annual premium from your savings account
5. Receive confirmation of enrollment from the bank

Documents Required

• Aadhaar card (linked to bank account)
• Active savings bank account details
• Completed enrollment form (available at bank branches or online)
• Nominee details with relationship proof