Pradhan Mantri Suraksha Bima Yojna (PMSBY)

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed social security insurance scheme aimed at providing affordable accidental insurance coverage to individuals, particularly those from economically weaker sections of society. Launched on 9 May 2015 by the Government of India, PMSBY forms an integral part of the government’s mission for universal social security alongside the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY).

Background and Objectives

Before the introduction of PMSBY, access to formal insurance in India was limited, particularly among the poor and unorganised workers who faced high vulnerability to accidents and loss of livelihood. Recognising this gap, the government introduced PMSBY to ensure that citizens, especially low-income groups, have access to an affordable risk protection mechanism.
The main objectives of PMSBY are:

1. To provide affordable accidental insurance coverage to individuals across all age groups within the eligible category.
2. To offer financial protection to families in the event of accidental death or disability of the breadwinner.
3. To promote a culture of insurance and financial security among the masses.

The scheme is administered under the Department of Financial Services (DFS), Ministry of Finance, in collaboration with public sector general insurance companies and several private insurance providers.

Launch and Implementation

The Pradhan Mantri Suraksha Bima Yojana was formally launched by Prime Minister Narendra Modi on 9 May 2015 in Kolkata, as part of the government’s broader initiative to expand financial inclusion and social welfare coverage. The scheme was introduced simultaneously with PMJJBY (life insurance) and APY (pension), completing a comprehensive social security framework under the Jan Suraksha Programme.

Eligibility and Coverage

PMSBY is open to all Indian citizens who meet the following criteria:

• Age Limit: 18 to 70 years.
• Bank Account: The applicant must have a savings bank account linked with the scheme.
• Aadhaar Linkage: Aadhaar serves as the primary identity document for enrolment and claim settlement.
• Auto-Debit Facility: The premium is auto-debited from the insured person’s bank account on an annual basis.

Insurance Coverage Offered:

• Accidental Death: ₹2 lakh compensation in case of death due to an accident.
• Permanent Total Disability: ₹2 lakh compensation for total and irrecoverable loss of both eyes, hands, or legs.
• Permanent Partial Disability: ₹1 lakh compensation for loss of one eye, hand, or leg.

Premium Structure

The PMSBY is designed to be highly affordable, with an annual premium of ₹20 per member. The amount is automatically debited from the account holder’s savings account between 1 May and 31 May each year, covering the period from 1 June to 31 May.
This low-cost structure has made PMSBY one of the most accessible insurance schemes in India, especially for low-income groups and workers in the informal sector.

Enrolment Process

The enrolment under PMSBY is simple and can be completed through various channels:

• Bank Branches: Account holders can enrol directly at their bank branch.
• Online Mode: Many banks offer digital enrolment through internet banking or mobile banking applications.
• Business Correspondents (BCs): In rural and remote areas, BCs assist citizens in enrolling and renewing the scheme.

The enrolment is renewable annually, with an auto-debit facility ensuring continued coverage without requiring repeated manual renewals.

Nodal Agencies and Institutional Framework

The implementation of PMSBY involves coordination among multiple stakeholders:

• Participating Banks: Facilitate enrolment, premium collection, and auto-debit processes.
• Insurance Companies: Public sector and authorised private insurers underwrite the policies and process claims.
• Government Ministries: The Department of Financial Services oversees monitoring and policy direction.
• State Nodal Departments: Coordinate awareness campaigns and monitor coverage across states.

Claim Settlement Procedure

In case of accidental death or disability, the claim process is designed to be simple and time-bound.

1. Claim Intimation: The nominee or legal heir must inform the bank or insurer within 30 days of the accident.
2. Documentation: Required documents include the claim form, FIR (in case of an accident), post-mortem report (for death claims), and medical certificate (for disability).
3. Verification: The bank and insurer verify the claim and documents.
4. Settlement: Upon approval, the claim amount is credited directly into the nominee’s bank account within a few weeks.

The scheme’s simplified claim process ensures that beneficiaries receive timely assistance during emergencies.

Achievements and Progress

Since its inception, PMSBY has achieved extensive outreach across India, particularly among rural and semi-urban populations. As of 2025, key achievements include:

• Over 35 crore enrolments across the country.
• Total claims settled exceeding ₹1.5 lakh crore in compensation.
• Active participation of more than 20 insurance companies, including both public and private entities.
• High penetration among low-income and rural households, reflecting enhanced financial protection.

The success of PMSBY has been strengthened by its integration with Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts, which have served as the primary channel for enrolments.

Advantages and Socio-Economic Impact

The PMSBY has contributed significantly to India’s social security framework through the following benefits:

• Financial Protection: Provides immediate financial relief to families affected by accidental death or disability.
• Inclusivity: Ensures coverage for low-income individuals and informal workers who are often excluded from formal insurance.
• Simplified Access: Easy enrolment and auto-debit facilities make participation hassle-free.
• Affordability: Minimal annual premium enhances accessibility across all economic strata.
• Complementary Coverage: Works in conjunction with PMJJBY and APY to offer comprehensive financial security.
• Promotion of Insurance Culture: Increases awareness about the importance of insurance among first-time policyholders.

Challenges and Limitations

Despite its success, PMSBY faces certain operational and structural challenges:

• Low Awareness Levels: Many eligible individuals remain unaware of the scheme’s benefits or renewal requirements.
• Dormant Accounts: Inactive Jan-Dhan or bank accounts may result in failed premium debits.
• Claim Delays: Documentation and verification processes can sometimes delay settlements.
• Low Renewal Rate: Some beneficiaries do not renew policies annually due to oversight or lack of information.
• Limited Coverage Amount: The compensation amount, though significant, may be insufficient to cover long-term financial needs of the family.

Efforts to address these challenges include periodic awareness campaigns, digital reminders for renewals, and simplified claim processes.

Role During Crises and Social Welfare Integration

PMSBY has provided crucial financial support during national emergencies and disasters. Many beneficiaries of the scheme have received compensation following accidents caused by floods, road mishaps, and other calamities. During the COVID-19 pandemic, the scheme continued to protect millions of low-income workers and their families from financial shocks arising from accidental deaths.
The integration of PMSBY with the Jan-Dhan–Aadhaar–Mobile (JAM) trinity has enabled seamless implementation, ensuring efficient premium collection, claim settlements, and beneficiary tracking.

Global and Policy Significance

The PMSBY exemplifies India’s efforts toward achieving universal social protection and aligns with the United Nations Sustainable Development Goals (SDGs), particularly Goal 1 (No Poverty) and Goal 3 (Good Health and Well-being). Internationally, it is recognised as one of the most cost-effective and large-scale social insurance models in the world.
It reflects India’s shift toward inclusive financial architecture, integrating financial inclusion with social security to empower vulnerable populations.

Future Prospects

To strengthen and expand PMSBY’s impact, the government aims to:

• Increase coverage through intensified awareness and outreach programmes.
• Introduce digital claim settlement systems for faster disbursements.
• Explore higher insurance coverage options in line with inflation and rising living costs.
• Encourage private sector participation and innovative micro-insurance models.
• Enhance integration with other social protection schemes for comprehensive risk coverage.