Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme in India aimed at providing affordable insurance security to the masses. It targets the large portion of the Indian population that lacks access to formal social security structures. The scheme functions as a one-year cover, renewable from year to year, offering financial protection against death or disability caused by accidents.
Institutional Framework and Launch Details
Nodal Ministry and Department
The scheme is administered and monitored by the Department of Financial Services (DFS) under the Ministry of Finance, Government of India.
Launch Date and Timeline
PMSBY was formally launched by the Prime Minister on May 9, 2015, along with two other social security programs, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY).
Implementation Agencies
The scheme is offered and administered through Public Sector General Insurance Companies (PSGICs) or any other general insurance companies that choose to offer the product on similar terms through partnerships with participating banks and Post Offices.
Eligibility Criteria and Enrolment Framework
Age Eligibility Bracket
The scheme is open to all individual bank and Post Office account holders aged between 18 years (completed) and 70 years (near birthday).
Account Linkage Mandate
Applicants must possess an active individual savings bank account or Post Office savings account. In the case of multiple savings accounts held by an individual in one or across different banks, the person is eligible to join the scheme through only one savings bank account.
KYC Requirements
Aadhaar is recognized as the primary Know Your Customer (KYC) document for opening and validating the insurance account, and it must be linked to the designated savings account.
Auto-Debit Consent
Enrolment requires the account holder to submit an explicit, one-time or annual auto-debit consent form, authorizing the participating bank to deduct the premium directly from their savings account every year.
Premium Structure and Financial Revisions
Annual Premium Cost
The premium is currently fixed at ₹20 per annum per member.
Premium Revisions
At its inception in 2015, the premium was set at ₹12 per annum. Following a comprehensive review of the historical claims experience and to maintain the financial viability of the underwriting insurance companies, the Ministry of Finance revised the premium to ₹20 per annum, effective from June 1, 2022.
Mode of Deduction and Renewal Cycle
The premium is automatically debited from the beneficiary’s account in a single installment between May 25 and May 31 of every successive year. The insurance cover period runs from June 1 of the commencement year to May 32 (May 31) of the subsequent year.
Risk Coverage and Benefit Matrix
The scheme provides financial compensation based on the nature of the physical injury sustained during an accident. The benefits are structured to address absolute fatality as well as varied levels of permanent physical anatomical loss.
| Nature of Incident and Resulting Casualty | Risk Coverage / Sum Insured |
| Accidental Death | ₹2,00,000 (Rupees Two Lakh) |
| Total and Irrecoverable Loss of Both Eyes | ₹2,00,000 (Rupees Two Lakh) |
| Loss of Use of Both Hands or Both Feet | ₹2,00,000 (Rupees Two Lakh) |
| Loss of Sight of One Eye and Loss of Use of One Hand or One Foot | ₹2,00,000 (Rupees Two Lakh) |
| Total and Irrecoverable Loss of Sight of One Eye | ₹1,00,000 (Rupees One Lakh) |
| Total and Irrecoverable Loss of Use of One Hand or One Foot | ₹1,00,000 (Rupees One Lakh) |
Exclusion and Termination Conditions
Exclusions from Coverage
The accidental risk cover does not extend to deaths or disabilities caused by suicide, intentional self-injury, or execution of a legal death sentence. However, casualties resulting from natural calamities like floods, earthquakes, or landslides, as well as deaths due to murder, are covered under the scope of the scheme.
Termination of Insurance Cover
The accident cover for an individual member terminates automatically upon the occurrence of any of the following milestones:
- The member reaches the maximum age threshold of 70 years.
- The designated savings bank account is closed due to inactivity or lack of compliance.
- The account suffers from insufficiency of funds to debits the required annual premium at the time of renewal.
- The beneficiary chooses to claim the full sum insured under a permanent total disability scenario, rendering future renewals void.
Fund Apportionment and Institutional Cost Structure
The annual premium collected from the beneficiary is split among the various participating stakeholders to sustain the administrative and delivery mechanisms of the scheme.
Insurance Premium Share
Out of the total ₹20 annual fee, a sum of ₹18 is directly transferred to the underwriting insurance company to cover the core actuarial risk pool.
Business Correspondent / Agent Commission
A sum of ₹1 is allocated to bank agents, corporate Business Correspondents (BCs), micro-agents, or insurance brokers as an incentive for onboarding, executing forms, and maintaining continuous door-to-door public relations.
Administrative Cost Share of Banks
The remaining ₹1 is retained by the participating bank or Post Office to defray operational costs, automated electronic data interchange setups, and data handling expenses.
Core Scheme Metrics and Performance Indicators
- Cumulative Enrolments: Over 45.50 Crore individual accounts have been actively enrolled under the PMSBY framework since its inception.
- Total Settled Claims: Insurance companies have successfully settled over 1.30 Lakh individual accidental death and disability claims under the program.
- Aggregate Disbursal Value: The cumulative financial compensation transferred directly to beneficiaries and nominees exceeds ₹2,600 Crore.
Key Trivia and Analytical Points for Prelims
Not a Natural Death Benefit
PMSBY exclusively covers accidental casualties. If an enrolled member dies due to natural medical ailments, infectious diseases, heart attacks, or age-related failures, no financial claim can be made under this scheme. Such events fall under the companion scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
Definition of Accident
For the purposes of this scheme, an accident is defined as a sudden, unforeseen, and involuntary event caused by external, violent, and visible means.
Non-Taxable Claim Benefits
The insurance claim amount paid out to the nominee or the disabled beneficiary is fully exempt from income tax regulations under Section 10(10D) of the Income Tax Act.
Direct Benefit Transfer (DBT) Framework
All claims under PMSBY are settled via online electronic clearance mechanisms, and the insurance sum is transferred directly into the bank account of the beneficiary or the registered legal nominee, bypassing physical checks or intermediate handling.
Global Premium Comparison
At its baseline launch pricing of ₹12 per annum, PMSBY was recognized as one of the lowest-cost micro-insurance programs anywhere in the world, working out to a nominal cost of just 1 rupee per month for an individual citizen.
Last Modified: June 13, 2026