Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme – Eligibility and Benefits (2025 Full Guide)

Introduction

In India, where a large section of the population is still financially vulnerable, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) offers a powerful solution—affordable accident insurance for every citizen. For just ₹20 per year, one can access accidental death and disability coverage up to ₹2 lakh. Launched in 2015 under the larger umbrella of the Jan Suraksha Schemes, PMSBY has proven to be a safety net for millions of low-income families.

This article is a complete 2025 guide to the PMSBY scheme. We’ll cover eligibility, benefits, how to enroll, claim process, pros and cons, and real-life impact stories that show why this scheme matters more than ever.

Let’s dive in.

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What is PMSBY?

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accidental insurance scheme that provides financial support to individuals or their families in case of accidental death or disability.

✅ Launched on:

• 9th May 2015

✅ Target Group:

• People aged 18–70 years with a savings bank account

✅ Annual Premium:

• ₹20 per annum, auto-debited from your bank account

✅ Sum Insured:

• ₹2 lakh for accidental death or full disability

• ₹1 lakh for partial disability

It is one of the most affordable insurance schemes globally, ensuring even the poorest households can access risk coverage.

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Key Features of PMSBY

Here are the standout features that make PMSBY popular among all income groups:

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Eligibility Criteria for PMSBY

To enroll in PMSBY, you must meet the following conditions:

1. Age: Between 18 to 70 years

2. Bank Account: You must have a savings bank account

3. Consent: You must provide consent for auto-debit of premium

4. Aadhaar Linking: Aadhaar card must be linked to your bank account

5. Residency: Only Indian citizens or residents can apply

If you meet the above criteria, you are eligible for PMSBY—regardless of your occupation, income, or social category.

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Coverage Benefits under PMSBY

Let’s break down the benefits of PMSBY in detail:

1. Accidental Death

• If the insured person dies due to an accident, the nominee receives ₹2 lakh.

2. Total Disability

• If the insured suffers loss of both eyes or both limbs, or becomes permanently disabled due to an accident, ₹2 lakh is paid.

3. Partial Disability

• If the insured loses one eye or one limb, the claim amount is ₹1 lakh.

4. Low Premium

• At just ₹20 per annum, this is the lowest-cost insurance for the coverage it provides.

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How to Enroll in PMSBY

✅ Online Method

Most national and private banks in India offer PMSBY through their net banking portals. Here’s how to enroll online:

1. Login to your internet banking account

2. Go to Insurance > Government Schemes > PMSBY

3. Read the terms and conditions

4. Enter nominee details

5. Click on Submit/Enroll

6. ₹20 will be auto-debited from your account

✅ Offline Method

If you’re not internet-savvy, follow these steps:

1. Visit your bank branch

2. Ask for the PMSBY enrollment form

3. Fill in your details and nominee information

4. Submit with Aadhaar and bank account number

5. Bank official will process and confirm your enrollment

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List of Banks Offering PMSBY

All major public and private sector banks offer PMSBY:

• State Bank of India (SBI)

• Punjab National Bank (PNB)

• HDFC Bank

• ICICI Bank

• Bank of Baroda

• Axis Bank

• Union Bank of India

• Kotak Mahindra Bank

• Central Bank of India

• Canara Bank

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How the Premium Payment Works

The premium of ₹20 is:

• Auto-debited annually from your linked savings account

• Deducted on or before 31st May every year

• The policy period is 1st June to 31st May annually

Make sure you have at least ₹20 in your account before May 31st each year to avoid policy lapse.

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How to File a Claim Under PMSBY

In case of an accident, the claim process is straightforward:

✅ For Accidental Death:

1. Inform the bank where the account is held

2. Submit a claim form along with:

   • Death certificate

   • Postmortem report

   • FIR copy (if required)

   • Nominee’s identity and bank account details

3. Claim is processed and amount is credited to nominee’s account

✅ For Disability:

1. Submit:

   • Medical certificate of disability

   • Accident details and FIR

   • Identity proof of insured

2. Bank sends documents to the insurance company

3. Amount is credited to insured’s account

Time Frame: Claims are generally settled within 30–45 days.

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PMSBY vs Other Insurance Schemes

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Real-Life Examples of PMSBY Helping Families

👩‍🌾 Case 1: A Farmer from Uttar Pradesh

Ramesh Yadav, a 38-year-old farmer from UP, tragically died in a tractor accident. His wife received ₹2 lakh under PMSBY, helping her pay off debts and continue her children’s education.

🛵 Case 2: Daily Wage Worker in Kerala

Shalini Pillai lost her leg in a road accident. She had enrolled in PMSBY through her bank. Within 45 days, she received ₹1 lakh, which helped her with surgery and post-operative care.

These stories highlight how a mere ₹20 investment can bring life-saving financial support.

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Advantages of PMSBY

• ✅ Affordable: Anyone can afford ₹20/year

• ✅ Simple Process: Easy enrollment and claim process

• ✅ Nominee Support: Family is covered in case of death

• ✅ Auto-renewal: No need to re-apply each year

• ✅ Widespread Reach: Covers urban and rural populations

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Disadvantages and Challenges

• ❌ Limited Coverage: ₹2 lakh may not be sufficient in major accidents

• ❌ Low Awareness: Many eligible citizens are still unaware

• ❌ Bank Dependency: Must have a savings account

• ❌ Claim Documentation: FIRs and postmortem reports can delay claims

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Awareness Campaigns for PMSBY

The government and banks frequently organize:

• Financial Literacy Drives

• Village Camps

• Social Media Campaigns

• Bank Mitra (Business Correspondent) Trainings

These initiatives aim to increase participation, especially among women and rural citizens.

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Latest PMSBY Updates in 2025

As of this year, a few updates have been made:

• The accident insurance is now valid globally, not just within India

• The government is considering increasing the sum insured to ₹3 lakh

• A mobile app is in development to let users manage their policies

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Common Myths About PMSBY

❌ Myth 1: Only salaried people can apply

Truth: Even daily wage earners and unemployed individuals can apply.

❌ Myth 2: You need to pay monthly

Truth: Only ₹20 once a year, no monthly payments.

❌ Myth 3: Claims never get settled

Truth: Claim settlement rate is over 90%, as per official data.

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How PMSBY Supports India’s Financial Inclusion Mission

PMSBY plays a key role in the government’s agenda to:

• Protect low-income groups

• Reduce financial vulnerability

• Promote social security

• Achieve universal insurance coverage

It aligns with the Digital India, Jan Dhan Yojana, and Ayushman Bharat missions.

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Frequently Asked Questions (FAQs)

Q1: What if I miss premium payment?

Your coverage will lapse. You can re-enroll next year or visit the bank to reactivate.

Q2: Can I enroll in PMSBY and PMJJBY both?

Yes. You can get accident and life coverage together.

Q3: What documents are needed for a claim?

Death certificate, FIR, postmortem, identity proof, nominee bank details.

Q4: Can I enroll using my Jan Dhan account?

Yes, Jan Dhan accounts are eligible.

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Conclusion

In a world where accidents can derail lives, Pradhan Mantri Suraksha Bima Yojana offers a simple but powerful solution. For just ₹20 per year, it provides peace of mind to millions of Indian families. Whether you’re a farmer, student, factory worker, or homemaker—you are eligible and should not ignore this vital scheme.

So, if you haven’t enrolled yet, visit your bank or do it online. Share this guide with friends, family, and those in need.

One small step can mean a world of difference in times of crisis.

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