🚨 PMSBY
Government-backed accident insurance scheme providing ₹2 lakh cover for accidental death at just ₹20/year.
What is PMSBY?
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme that provides affordable personal accident coverage for death or disability caused by an accident. Unlike life insurance (which covers death from any cause), PMSBY specifically covers accidental events only.
The scheme was launched on 9th May 2015 by Prime Minister Narendra Modi as part of the government's financial inclusion initiative, alongside PMJJBY.
Benefits & Coverage
PMSBY provides coverage for three scenarios arising from accidents:
| Event | Coverage Amount | When it Applies |
|---|---|---|
| Accidental Death | ₹2 lakh | Death resulting from an accident |
| Total & Permanent Disability | ₹2 lakh | Loss of both eyes, or loss of use of both hands/feet, or loss of one eye and one hand/foot |
| Partial Disability | ₹1 lakh | Loss of one eye, or loss of use of one hand/foot |
Key Point: The coverage is accident-specific – natural death, illness, or self-inflicted injuries are NOT covered under PMSBY.
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What is PMSBY?
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme that provides affordable personal accident coverage for death or disability caused by an accident. Unlike life insurance (which covers death from any cause), PMSBY specifically covers accidental events only.
The scheme was launched on 9th May 2015 by Prime Minister Narendra Modi as part of the government's financial inclusion initiative, alongside PMJJBY.
Benefits & Coverage
PMSBY provides coverage for three scenarios arising from accidents:
| Event | Coverage Amount | When it Applies |
|---|---|---|
| Accidental Death | ₹2 lakh | Death resulting from an accident |
| Total & Permanent Disability | ₹2 lakh | Loss of both eyes, or loss of use of both hands/feet, or loss of one eye and one hand/foot |
| Partial Disability | ₹1 lakh | Loss of one eye, or loss of use of one hand/foot |
Key Point: The coverage is accident-specific – natural death, illness, or self-inflicted injuries are NOT covered under PMSBY.
Premium
At just ₹20 per annum (less than ₹2 per month), PMSBY is one of the most affordable insurance products available in India:
- Premium Amount: ₹20 per year per member
- Payment Method: Auto-debit from the subscriber's bank/Post office account in one instalment
- Coverage Period: One year (1st June to 31st May), renewable annually
The extremely low premium is possible because of the group insurance structure and government backing, which keeps administrative costs minimal.
Administration
The scheme operates through a Master Policy structure similar to PMJJBY:
- Administered by: Public Sector General Insurance Companies (PSGICs) and other approved general insurers
- In collaboration with: Participating banks and post offices
| Entity | Role |
|---|---|
| General Insurance Company (e.g., New India Assurance) | Issues ONE master policy to the bank |
| Bank/Post Office | Holds the master policy on behalf of ALL enrolled customers |
| Individual Customers | Are covered UNDER the master policy (not separate policies) |
Eligibility
The scheme has broad eligibility criteria to maximize coverage:
- Age Group: All individuals in the age group of 18 to 70 years are entitled to join (wider range than PMJJBY's 18-50)
- Account Requirement: Must have a savings account with a participating bank or post office
- Exclusions: Institutional account holders are NOT eligible
- NRIs: Any NRI having an eligible bank account with a branch located in India can also enroll
Note: Subscribers can join through multiple accounts if they hold accounts with different banks, but claims will only be settled under ONE policy.
Key Takeaways
| Parameter | Details |
|---|---|
| Launch Date | 9 May 2015 |
| Age Limit | 18 - 70 years |
| Accidental Death Cover | ₹2 lakh |
| Total Disability Cover | ₹2 lakh |
| Partial Disability Cover | ₹1 lakh |
| Premium | ₹20 per annum |
| Coverage Type | Accident only (NOT natural death/illness) |
PMJJBY vs PMSBY: Key Differences
Both schemes were launched together on the same day, but they serve different purposes:
| Feature | PMJJBY | PMSBY |
|---|---|---|
| Type | Life Insurance | Accident Insurance |
| Coverage Trigger | Death due to any cause | Death/disability due to accident only |
| Sum Assured | ₹2 lakh | ₹2 lakh (death/full disability), ₹1 lakh (partial) |
| Premium | ₹436/year | ₹20/year |
| Age Limit (Enrollment) | 18-50 years | 18-70 years |
| Coverage Until Age | 55 years | 70 years |
| Administered By | Life insurers (LIC, etc.) | General insurers (New India, etc.) |
Tip: Many people enroll in BOTH schemes together for comprehensive coverage – PMJJBY covers natural death while PMSBY provides additional accident coverage at minimal extra cost (₹436 + ₹20 = ₹456/year for ₹4 lakh total accidental death cover).
Summary Cheat Sheet
| Concept / Topic | Key Details / Explanation |
|---|---|
| Full Form | Pradhan Mantri Suraksha Bima Yojana |
| Type | Accident Insurance (covers accidental events only) |
| Launch Date | 9 May 2015 |
| Premium | ₹20 per annum (auto-debit from bank/PO account) |
| Accidental Death Cover | ₹2 lakh payable to nominee |
| Total & Permanent Disability | ₹2 lakh (loss of both eyes, both hands/feet, or one eye + one hand/foot) |
| Partial Disability | ₹1 lakh (loss of one eye, one hand, or one foot) |
| NOT Covered | Natural death, illness, disease, self-inflicted injuries |
| Age Eligibility | 18 to 70 years (wider than PMJJBY's 18-50) |
| Coverage Period | 1st June to 31st May (annual, renewable) |
| Administered By | General insurers (PSGICs like New India Assurance) |
| Policy Structure | Master Policy held by bank on behalf of all customers |
| NRI Eligibility | Eligible with an Indian bank account |
| Key Difference from PMJJBY | PMSBY = accident only; PMJJBY = any cause of death |
| Combined Strategy | PMJJBY (₹436) + PMSBY (₹20) = ₹456/year for ₹4 lakh accidental death cover |
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