PMSBY (Pradhan Mantri Suraksha Bima Yojana)

What is PMSBY?

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-designed personal accident insurance scheme that covers death and disability caused by an accident. It is a one-year policy, renewed every year by auto-debit from the member's savings account at a participating bank or post office. Launched on 9 May 2015, it is the lowest-cost of the three Jan Suraksha schemes and has the widest reach, with over 50 crore cumulative enrolments by March 2025.

The scheme is administered by public sector and private general insurers in partnership with banks, which act as master policyholders. It is overseen by the Department of Financial Services.

How PMSBY works

The premium was raised from ₹12 to ₹20 from 1 June 2022 because claims had far exceeded premiums collected since launch. Joint account holders can each enrol. NRIs with eligible Indian bank accounts can join, with claims paid in rupees. A person can be covered through only one account, and duplicate premium is forfeited.

Late enrolment is allowed during the year on payment of the annual premium, with cover starting from the date of the debit. A small portion of the premium is paid to business correspondents or agents as commission on new enrolments and to the bank towards administration; where a customer enrols electronically on their own, the commission saving is passed on to them.

What counts as an accident. The Department of Financial Services defines it as a sudden, unforeseen and involuntary event caused by external, violent and visible means. Murder and natural calamities are covered; suicide is not. Road, rail, drowning and crime-related deaths need a police report, and cases like snakebite or a fall from a tree need hospital records.

Key numbers

Source: Press Information Bureau, May 2025. Women formed just over half of enrolments and rural residents about 72 to 74 per cent. As on 31 March 2025, IRDAI recorded PMSBY being offered by four public sector and eight private general insurers. In its 2024-25 data, IRDAI counted 3,703 lakh persons covered under PMSBY with gross premium of about ₹755 crore.

What PMSBY means for distribution

• It is the entry point for accident cover. At ₹20, PMSBY is often the first insurance policy a rural or low-income customer holds. Banks, post offices and business correspondents enrol members during account opening, Jan Dhan drives and gram panchayat campaigns.
• Renewal depends on balance. Cover lapses quietly if the account is short of ₹20 on the debit date. A simple balance reminder before 1 June keeps cover alive.
• Claim support is the real service. Families often do not know the scheme covered the deceased. Branch staff and business correspondents who check scheme status after an accidental death, and help with the police report and claim form, make the scheme work.
• It supports insurers' social sector obligations. Lives covered under government schemes count towards the social sector obligations of general insurers under IRDAI's 2024 regulations.
• It is a foundation for upgrades. ₹2 lakh does not replace income for most families, and PMSBY pays nothing for illness. A conversation about PMJJBY, health cover and individual accident policies follows naturally, without suggesting the scheme is enough.