The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-sponsored personal accident insurance scheme launched in 2015 under the Ministry of Finance. This scheme provides financial protection to Indian citizens in case of accidental death or disability.
PMSBY is part of the Jan Suraksha Initiatives, alongside Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY), aimed at ensuring social security coverage for the masses, especially those in the unorganized sector.
The scheme is designed to be simple, affordable, and accessible through bank accounts, making it ideal for widespread coverage among all sections of society.
Who is Eligible for PMSBY?
The eligibility criteria for PMSBY are simple, allowing wide access to citizens. The following points outline eligibility:
- Individuals must be between 18 and 70 years of age (age nearer birthday).
- Must have a savings bank account or post office account in India.
- Must provide consent for auto-debit of the annual premium.
- Must possess a valid Aadhaar card.
Persons not eligible:
- Members of the armed forces.
- Personnel in the merchant navy.
- Individuals already covered under another government-sponsored accident insurance scheme.
What are the Key Features of PMSBY?
The scheme has several features that make it accessible and beneficial to the common citizen:
| Feature | Details |
| Accidental Death and Disability Cover | – Rs. 2 lakh for accidental death or total permanent disability. – Rs. 1 lakh for partial disability. |
| Low Premium | Annual premium of Rs. 20 per member. |
| Automatic Payment | Premium is auto-debited from the participant’s bank or post office account, usually on or before 1st June each year. |
| Coverage Duration | Coverage is valid from June 1 to May 31 of the following year.Members joining mid-year are covered from the premium debit date until May 31 of the next year. |
| Renewal | The scheme can be renewed annually with payment of the premium. |
| No Medical Examination | Enrollment does not require any medical tests, making it accessible to all eligible participants. |
| Termination Conditions | – On reaching 70 years of age. – If the account is closed or insufficient funds exist. – If premium is not paid within 30 days of the due date. – If Aadhaar or bank account details change, the insurance company must be notified within 30 days. |
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What are the Benefits of PMSBY?
PMSBY provides financial support to families and individuals in case of unforeseen accidents. Key benefits include:
- Accidental Death: Nominee receives Rs. 2 lakh.
- Total and Irrecoverable Disability: Rs. 2 lakh for loss of both eyes, both hands/feet, or one eye plus one hand/foot.
- Partial Disability: Rs. 1 lakh for loss of one eye or one hand/foot.
- Affordable Coverage: Extremely low premium ensures financial security for the poor and middle class.
The primary purpose is to provide financial relief to families in case of accidents, covering treatment, rehabilitation, and financial losses.
How can One Enroll in PMSBY?
Enrollment is easy and straightforward. Participants can enroll via:
- Bank Branches – Submit an application form at the participating bank.
- Internet Banking – Enrollment can be done digitally.
- Post Offices – Policy enrollment and premium payment can also be done through post offices.
The premium is auto-debited, making renewals hassle-free. Participants can also choose a long-term continuous enrollment option to avoid missing out on coverage.
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Are there Any Tax Benefits Under PMSBY?
PMSBY provides limited but significant tax benefits:
- Premium Deduction: The annual premium of Rs. 20 is eligible for tax deduction under Section 80C of the Income Tax Act, 1961.
- Tax-Free Payouts: Benefits received under PMSBY, including death and disability claims, are exempt under Section 10(10D).
How does PMSBY Fit into India’s Social Security Framework?
Before PMSBY and other Jan Suraksha Initiatives, a majority of Indians were without accident, life, or health insurance. According to the 2011-12 NSSO survey, nearly 88% of workers in the unorganized sector lacked formal pension or insurance coverage.
PMSBY leverages bank accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) to provide:
- Affordable financial security to millions of citizens.
- Coverage for low-income and unorganized sector workers.
- A step toward universal social security in India.
What are the Key Facts and Figures About PMSBY?
The key facts and figures about PMBSY:
| Feature | Detail |
| Launched | 9th May 2015 |
| Ministry | Ministry of Finance |
| Type | Personal Accident Insurance |
| Annual Premium | Rs. 20 |
| Coverage Amount | Rs. 2 lakh (death/total disability), Rs. 1 lakh (partial disability) |
| Eligibility | Age 18–70 years, savings/post office account |
| Renewal | Annually, via auto-debit |
| Subscribers (2022) | 22 crore active subscribers |
| Claims Paid (2022) | Rs. 2,513 crore |
| Premium Collected Since Launch | Rs. 1,134 crore |
| Target | 37 crore active subscribers in 5 years |
Also Check: List of Government Schemes of India
Key Takeaways
| Feature | Summary |
| Scheme Type | Government-backed personal accident insurance |
| Eligibility | Bank/post office account holders aged 18–70 |
| Premium | Rs. 20/year |
| Coverage | Rs. 2 lakh for death/total disability, Rs. 1 lakh for partial disability |
| Enrollment | Banks, post offices, internet banking |
| Auto-Debit | Premium auto-debited annually |
| Termination | Age 70, account closure, non-payment, Aadhaar/bank changes |
| Tax Benefits | Deduction under Section 80C, payout exempt under Section 10(10D) |
| Significance | Social security coverage for unorganized sector & low-income groups |
| Launch Date | 9 May 2015 |
Questions on PMSBY
- Who administers the PMSBY scheme?
a) Ministry of Home Affairs
b) Ministry of Finance
c) Ministry of Health
d) Ministry of Social Justice
e) Reserve Bank of India - What is the annual premium for PMSBY?
a) Rs. 50
b) Rs. 100
c) Rs. 20
d) Rs. 200
e) Rs. 500 - What is the maximum age limit for joining PMSBY?
a) 60 years
b) 65 years
c) 70 years
d) 75 years
e) 80 years - What is the coverage for partial disability under PMSBY?
a) Rs. 50,000
b) Rs. 1 lakh
c) Rs. 1.5 lakh
d) Rs. 2 lakh
e) Rs. 2.5 lakh - PMSBY was launched in which year?
a) 2014
b) 2015
c) 2016
d) 2017
e) 2018 - Which government scheme is PMSBY linked to for banking infrastructure?
a) Pradhan Mantri Jan Dhan Yojana
b) PMJJBY
c) APY
d) PMAY
e) NPS - How is the PMSBY premium collected?
a) Cash only
b) Cheque only
c) Auto-debit from bank/post office account
d) Online payment only
e) None of the above - Which of the following groups is not eligible for PMSBY?
a) Citizens aged 50
b) Armed forces personnel
c) Post office account holders
d) Savings bank account holders
e) Citizens aged 30 - The death or disability benefit under PMSBY is exempt under which section of the Income Tax Act?
a) Section 80C
b) Section 10(10D)
c) Section 24
d) Section 80D
e) Section 115B - Which of the following is NOT a Jan Suraksha Initiative?
a) PMSBY
b) PMJJBY
c) Atal Pension Yojana
d) Pradhan Mantri Awas Yojana
e) None of the above
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Answer Key:
| Question Number | Answer |
| 1 | b) Ministry of Finance |
| 2 | c) Rs. 20 |
| 3 | c) 70 years |
| 4 | b) Rs. 1 lakh |
| 5 | b) 2015 |
| 6 | a) Pradhan Mantri Jan Dhan Yojana |
| 7 | c) Auto-debit from bank/post office account |
| 8 | b) Armed forces personnel |
| 9 | b) Section 10(10D) |
| 10 | d) Pradhan Mantri Awas Yojana |
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