The Pradhan Mantri Suraksha Bima Yojana (PMSBY) represents an accident insurance program backed by the Indian government. Introduced on May 8, 2015, its primary objective is to offer accessible accident coverage to individuals without insurance, particularly those from economically vulnerable segments of society.

A Comprehensive Look at the PMSBY:

Core Elements of PMSBY:

• Scheme Category: Accidental Insurance

• Duration of Coverage: One year, with the option for annual renewal from June 1st to May 31st.

• Management: Overseen by Public Sector General Insurance Companies and other willing General Insurance companies, collaborating with participating Banks and Post Offices.

• Annual Fee: ₹20 per member. This amount is automatically deducted from the subscriber's bank or post office account, typically around June 1st each year.

• Eligibility Criteria for PMSBY :

  • Individuals must be between 18 and 70 years of age.

  • They need to hold a savings bank account with a participating bank or post office.

  • Enrollment requires their consent and authorization for automatic premium deduction.

  • While Aadhaar serves as the primary identification for KYC, it is not a mandatory requirement for joining.

  • Non-Resident Indians (NRIs) with eligible bank accounts in India are also eligible to enroll.

• Enrollment Methods  for PMSBY: Participation can be initiated by:

  • Visiting a bank branch or post office and submitting the application form.

  • Utilizing online banking or mobile banking platforms of participating banks.

  • Engaging with Banking Correspondents (BCs).

  • Select banks also provide enrollment via SMS.

• Financial Protection:

  • Death due to Accident: A sum of ₹2 Lakh is payable to the designated nominee.

  • Complete and Irreversible Disability: The insured receives ₹2 Lakh in cases of:

    • Total and permanent loss of sight in both eyes.

    • Loss of use of both hands or both feet.

    • Loss of sight in one eye and loss of use of one hand or one foot.

  • Permanent Partial Disability: The insured is entitled to ₹1 Lakh for conditions including:

    • Total and irreversible loss of sight in one eye.

    • Loss of use of either one hand or one foot.

• Policy Termination: The insurance coverage ceases under the following circumstances:

  • Upon the insured reaching the age of 70 years.

  • If the linked bank or post office account is closed.

  • Due to insufficient funds in the account to maintain the policy's validity.

  • If an individual is covered under multiple accounts (in such instances, only one policy remains active, and premiums for other policies may be forfeited).

• Exclusions from Coverage: The scheme does not provide benefits for death or disability resulting from:

  • Natural causes or sickness.

  • Pre-existing health conditions.

  • Intentional self-harm or suicide attempts.

  • Being under the influence of alcohol or drugs.

• Claim Procedure in PMSBY :

  • In the event of an accident leading to death or disability, the insured party or the nominee should promptly notify the relevant bank.

  • A claim form must be obtained from the bank, the insurance provider, or their website.

  • The completed claim form, along with necessary documentation (death certificate, disability certificate from a certified civil surgeon, First Information Report (FIR) if applicable, post-mortem report if applicable, hospital discharge summary), should be submitted to the bank within 30 days of the accident.

  • For incidents like road or railway accidents, drowning, or those involving criminal activity, a police report (FIR) is typically required. For other incidents such as snake bites or falls, immediate medical records from a hospital may be sufficient.

  • The claim amount for disability is directly deposited into the insured's bank account, while death claims are transferred to the nominee's or legal heir's account.

Key Considerations of PMSBY:

• Policyholders have the option to renew their coverage on an annual basis.

• Individuals can choose to opt out and rejoin the scheme in subsequent years by paying the full annual premium.

• The scheme's operation is linked to the subscriber's bank account, with premiums deducted automatically.

• The insurance coverage provided under PMSBY is supplementary to any other insurance policies the subscriber may hold.

• Nomination details can be specified in the enrollment form, and it is essential to keep this information up to date.

The PMSBY stands as a vital social security initiative by the Government of India, aimed at offering financial protection to its citizens against accidental death or disability at a very nominal cost. As of May 2025, the scheme has garnered significant participation, with crores of enrollments and substantial claim amounts disbursed, highlighting its extensive reach and positive impact on the population.