Maarg Manthan · Topic 8.3

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Current Affairs & Government Schemes › Financial Inclusion and Insurance Schemes · Topic 8.3

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a one-year renewable accident insurance scheme of the Ministry of Finance, launched on 9 May 2015 from Kolkata. It gives Rs 2 lakh on accidental death or total permanent disability and Rs 1 lakh on partial permanent disability, to savings bank account holders aged 18 to 70 years, for a premium of Rs 20 a year, auto-debited from the account. It is offered by public sector general insurers and other insurers through banks and post offices. About 58.78 crore cumulative enrolments were reported by 1 July 2026, making it the largest of the three Jan Suraksha schemes.

5 min read · UPSC Prelims · Current Affairs & Government Schemes · Financial Inclusion and Insurance Schemes

At a Glance

Ministry Finance
Launched 9 May 2015
Cover Rs 2 lakh death or total disability, Rs 1 lakh partial
Premium Rs 20 a year
Age 18 to 70
Exam link UPSC Prelims, Current Affairs and Government Schemes: Financial Inclusion and Insurance Schemes

Where Does It Fit?

This is the third topic of the macro on financial inclusion and insurance. It is the accident cover among the three Jan Suraksha schemes and has the lowest premium of any government insurance scheme. Previous topic: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Next topic: Atal Pension Yojana (APY).

What Are the Features of PMSBY?

Feature	Detail
Type	One-year renewable accident insurance, with cover from 1 June to 31 May each year
Launch	9 May 2015, with PMJJBY and Atal Pension Yojana
Eligibility	Persons aged 18 to 70 years with a savings bank or post office account and consent to auto-debit. Entry is only up to 70, and cover ends at that age
Cover	Rs 2 lakh for accidental death and total permanent loss of both eyes, both hands or feet, or one eye and one hand or foot. Rs 1 lakh for loss of one eye, one hand or one foot
Premium	Rs 20 a year since 1 June 2022, raised from Rs 12
Insurers	Public sector general insurance companies and private insurers who have an agreement with banks
Claim	Claims are made through the bank branch where the account is held, with an accident report and a disability certificate where relevant

What Do the Numbers and Limits Show?

Enrolments: A Finance Ministry statement of July 2026 reported about 58.78 crore cumulative enrolments. This counts all enrolments since 2015, including those not renewed
Claims: With PMJJBY, claims of about Rs 25,160 crore had been settled by May 2026, as reported, and a larger share of claims by number relates to life cover
One cover only: A person can have only one cover even with several accounts
What is not covered: Death by suicide, natural death and disease are not covered, which is why life cover is a separate scheme as in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Lapse: The cover ends if the account has too little balance on the debit date, or if the account is closed
Umbrella view: The three schemes are described together in Jan Suraksha Schemes (Umbrella Social Security Schemes)

What Else Should You Remember?

Premium change: The premium of the Pradhan Mantri Suraksha Bima Yojana rose from Rs 12 to Rs 20 in June 2022 because of claims experience, after seven years at Rs 12
Disability definition: Total permanent disability means loss of both eyes, both hands or both feet, or one eye and one hand or one foot, and partial means loss of one eye, hand or foot
Link with account: The policy depends on a savings account, which links it to the Pradhan Mantri Jan Dhan Yojana, as in Pradhan Mantri Jan Dhan Yojana (PMJDY)
Roads: Road accidents are a major cause of accidental deaths in India, so the scheme matters for drivers, labourers and farmers
Premium sharing: The premium covers the insurer, the bank for administration and the business correspondent
No subsidy: There is no Government premium subsidy, so the low premium rests on large numbers and low administrative cost
Waiting period: There is no waiting period for accidental death, unlike the life cover
Claim rejection: Rejection often arises from lapsed cover due to low balance, missing documents or non-qualifying injuries
Regulation: The Insurance Regulatory and Development Authority of India oversees the insurers
Exam trap: PMSBY has the highest age limit, 70, among the three schemes, while PMJJBY has 50 and Atal Pension Yojana has 40
Awareness: Many holders do not know that they are covered, and the nominee may not know how to file a claim

Why Does It Matter for the Exam?

Date: 9 May 2015
Cover: Rs 2 lakh and Rs 1 lakh
Premium: Rs 20 a year
Age: 18 to 70
Common errors: Mixing the premium and age with PMJJBY, or treating it as life insurance for natural death

As an analytical point, accident cover at a very small premium is valuable for workers whose income depends on their body. A simple claim process, awareness of the nominee and a link to a hospital cash benefit would add real protection.

Why Is This Topic Important?

Numbers Cover and premium
Age limits Compare three schemes
Concept Accident versus life cover

What Came Next?

The next topic covers the pension scheme launched on the same day. Next topic: Atal Pension Yojana (APY).

Key People and Terms

PMSBY Accident insurance scheme
Total disability Loss of both limbs or eyes
Partial disability Loss of one limb or eye
Premium Yearly payment
Nominee Claim receiver

Exam Corner

Points to Remember

Launched: 9 May 2015.
Cover: Rs 2 lakh and Rs 1 lakh.
Premium: Rs 20.
Age: 18 to 70.
Enrolments: about 58.78 crore (July 2026).

Do Not Confuse With

PMSBY and PMJJBY Accident cover versus life cover for any death
PMSBY and Ayushman Bharat Accident cash cover versus hospitalisation cover
PMSBY and Atal Pension Yojana Insurance versus pension savings

Memory Hook

Twenty rupees a year, two lakh for an accident, seventy is the age limit.

Mains Angle

Questions ask whether very low-cost insurance gives real protection. These points give a balanced frame.

Strengths Very low premium, wide reach and no medical test
Weaknesses Lapses, low awareness and narrow cover
Way forward Auto-renewal, awareness and easier claims

A Question You May Face

An original practice question, not a past paper question.

“Examine the role of low-cost accident insurance such as PMSBY in the social security architecture of India.”

How to Answer

Introduce Scheme, cover and premium.
Role Safety net for informal workers.
Gaps Lapse, awareness, limited cover.
Way Auto-renewal and easy claims.

GS Relevance

Prelims: launch, cover, premium, age limits, disability rules. GS Paper 3: financial inclusion, insurance penetration. GS Paper 2: social security schemes.

Frequently Asked Questions

What is the Pradhan Mantri Suraksha Bima Yojana?

PMSBY is a one-year renewable accident insurance scheme launched on 9 May 2015 by the Ministry of Finance. It pays Rs 2 lakh for accidental death or total permanent disability and Rs 1 lakh for partial disability, to account holders aged 18 to 70 years, for a premium of Rs 20 a year.

Who is eligible for PMSBY?

Any person aged 18 to 70 years who holds a savings bank or post office account and agrees to auto-debit of the premium is eligible. A person can have only one PMSBY cover. Cover is renewed each year from 1 June, and it ends at age 70 or if the account lacks balance.

What is the premium of PMSBY?

The premium is Rs 20 a year since 1 June 2022, raised from Rs 12 which had held since the launch in 2015. It is debited from the savings bank account once a year through auto-debit, around the end of May, and covers the period from 1 June to 31 May.

What does PMSBY cover?

PMSBY covers accidental death and permanent disability. It pays Rs 2 lakh for accidental death and for total permanent loss of both eyes, both hands or feet, or one eye and one hand or foot. It pays Rs 1 lakh for loss of one eye, one hand or one foot.

What is the latest status of PMSBY?

A Finance Ministry statement of July 2026 reported about 58.78 crore cumulative enrolments in PMSBY, the largest among the three Jan Suraksha schemes. Together with PMJJBY, claims of about Rs 25,160 crore had been settled by May 2026. These are reported figures and change over time.

PYQ Practice — Statement Analysis

1 PMSBY gives Rs 2 lakh on accidental death.

True

It also pays Rs 1 lakh for partial disability.

2 The premium of PMSBY is Rs 436 a year.

False

It is Rs 20. Rs 436 is the PMJJBY premium.

3 The entry age for PMSBY is 18 to 70 years.