Pradhan Mantri Suraksha Bima Yojana

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Pradhan Mantri Suraksha Bima Yojana is a government-backed accident insurance scheme in India. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20% of India’s population has any kind of insurance, this scheme aims to increase the number.


Pradhan Mantri Suraksha Bima Yojana is available to people between 18 and 70 years of age with bank accounts. It has an annual premium of ₹12 (18¢ US) excluding service tax, which is about 14% of the premium. The amount will be automatically debited from the account. In case of accidental death or full disability, the payment to the nominee will be ₹2 lakh (US$3,000) and in case of partial Permanent disability ₹1 lakh (US$1,500). Full disability has been defined as loss of use in both eyes, hands or feet. Partial Permanent disability has been defined as loss of use in one eye, hand or foot.[1][2]

This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme. Most of these account had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes.


Private banks have complained that the Government should focus on upper middle class instead of the poorer section. Western scholars and Congress have argued that financial inclusion is a myth and serving such large number of people would only increase the burden and work-load of public sector.

Mode of payment of premium

The premium amount will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment for the entire year, as per the option to be given on enrollment. Members may also give one-time mandate for auto-debit every year till the scheme is in force, subject to re-calibration that may be deemed necessary on review of experience of the scheme from year to year

Termination of benefit cover

In following cases the cover will be terminated and no benefit will be payable to the subcribers.

  1. On attaining age 70 years or the age nearest birth day
  2. At the time of renewal in subsequent years,due to insufficiency of balance to keep the insurance in force the account gets closed.
  3. In case a subscriber is covered by more than one account and premium is paid by the subscriber intentionally, insurance cover will be restricted to one only and the premium shall be liable to be forfeited.
  4. If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium, subject to conditions that are to be issued in future. During this period, the risk cover will be” suspended” and reinstatement of risk cover will be at the sole discretion of Insurance Company.

Pradhan Mantri Suraksha Bima Yojana Participating banks will deduct the premium amount in the same month when the auto debit option is given, preferably in May of every year, and remit the amount due to the Insurance Company in that month itself.

Claim Process

PMSBY claim process is like claiming other insurance from either private or governmental bank. You need to be prepare with each supporting document and must inform bank. Below steps can be summarised as claim process of Pradhan mantri suraksha Yojana.

  1. Need to inform the bank( There are more than 25 banks) regarding accident.
  2. Claim should be submitted to the Bank from which PMSBY has been bought.
  3. Claim Form should be submitted within 30 days after incidence.
  4. Submit claim supporting document like FIR, death certificate, report of post mortem, disability certificate (if any) and the discharge certificate.
  5. After Verification Bank will provide insurance amount to nominee or legal heir.

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