Pradhan Mantri Suraksha Bima Yojana

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Pradhan Mantri Suraksha Bima Yojana
Prime Minister(s)Narendra Modi
Key peopleArun Jaitley
Launched9 May 2015; 4 years ago (2015-05-09)

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.[1] It was formally launched by Prime Minister Narendra Modi on 8 May in Kolkata.[2] As of May 2016, only 20% of India's population has any kind of insurance, this scheme aims to increase the number.[3]


Pradhan Mantri Suraksha Bima Yojana is available to people (Indian Resident or NRI) between 18 and 70 years of age with bank accounts. It has an annual premium of 12 (17¢ US) exclusive of taxes. The GST is exempted on Pradhan Mantri Suraksha Bima Yojana. The amount will be automatically debited from the account. The accident insurance scheme will have one year cover from june 1 to May 31 and would be offered through banks and administered through public sector general insurance companies.

In case of accidental death or full disability, the payment to the nominee will be 2 lakh (US$2,900) and in case of partial Permanent disability 1 lakh (US$1,400). 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] Further, death due to suicide, alcohol, drug abuse, etc. are not covered.

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.[3] Now all Bank account holders can avail this facility through their net-banking service facility at any time of the year.[4]


A rising loss ratio has forced general insurers to urge the government to hike the premium for the scheme.[5]


As of 24 April 2017, 10 crore people have already enrolled for this scheme. 9,705 claims have been disbursed against 12,975 claims received.[6]

In April 2017, Haryana Government has announced that all Haryana residents in the age group of 18–70 years will be covered by PMSBY, wherein the state government would reimburse the premium to the beneficiary.[7]

See also[edit]


  1. ^ a b "Jan Suraksha: Social security for masses, pricing woes for insurers", Business Standard, 8 May 2015
  2. ^ a b "Banks advertise Pradhan Mantri Bima Yojana ahead of the roll out", Live Mint, 8 May 2015
  3. ^ a b "'Jan Suraksha schemes to help eliminate Jan Dhan's zero balance accounts'". Business Standard. 8 May 2015. Retrieved 9 May 2015.
  4. ^ "'Pradhan Mantri Suraksha Bima Yojana: Accidental death, disability cover@Rs 12 p.a'". Economic Times. 22 September 2016. Retrieved 22 September 2016.
  5. ^ "State-run insurers seek to increase PMSBY premium". The Financial Express (India). Retrieved 22 April 2017.
  6. ^ "Pradhan Mantri Suraksha Bima Yojana stats". Jan Suraksha. Retrieved 30 April 2017.
  7. ^ "Haryana extends accidental insurance cover to all residents". The Times of India. Retrieved 22 April 2017.