Pradhan Mantri Suraksha Bima Yojana (PMSBY)

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08 min read

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a social security scheme that offers one-year accidental death and disability cover, that can be renewed yearly. PMSBY is one of the three social security schemes that was announced in the Government in the 2015 budget. The other two being Atal Pension Yojana (APY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Who Is Eligible For PMSBY?

All individual bank account holders, whether single or joint account status, in the age group 18-70 years, are eligible to join the PMSBY scheme.
Points to be noted:

  • In case the individual holds multiple accounts in multiple banks then he will be allowed to join the scheme through one bank account only
  • In the case of joint account holders, all the holders will be allowed to join the scheme
  • NRI’s can also join the scheme; however, in the event of a claim arising, the beneficiary/ nominee will be paid in Indian currency only.

What Is The Premium Amount?

The premium amount is Rs.12 per annum per member and will be auto-debited from the account of the holder. The premium is a nominal amount to encourage the weaker sections to participate in the scheme. The amount will be deducted on or before June 1st; if it is deducted after June 1st, then the cover shall commence on the date of auto-debit.

What Is Covered In The Pradhan Mantri Suraksha Bima Yojana?

The risk cover is Rs. 2 lakh for accidental death and permanent disability and Rs. 1 lakh for permanent partial disability.
Permanent disability is defined as total and irrecoverable loss of both eyes or loss of use of both or one hand or foot.
Permanent partial disability is defined as total and irrecoverable loss of an eyesight or loss of use of a hand or foot

Note – This is in addition to any insurance plan an individual has. Also, this is not a Mediclaim and hence does not cover hospitalisation expenses.
The following table illustrates the causes leading to death or disability that are covered in the scheme:

Cause of disability/death Coverage
Accidents Yes
Natural Calamities Yes
Suicide No
Murder Yes

What Is The Period Of Enrolment?

The period of enrolment is starting from June 1st to May 31st of the subsequent year, i.e a period of one year. The instruction for auto-debit has to be given to the bank by May 31 every year. It is a yearly scheme, and hence the individual must provide consent for auto-debit before May 31 of subsequent years.

How To Apply For Pradhan Mantri Suraksha Bima Yojana?

The scheme is offered and administered by the Public Sector General Insurance Companies (PSGICs) and other general insurance companies in collaboration with the participating banks. The individual can register by contacting the affiliated bank or an insurance company or can download the form from the Government website – https://www.jansuraksha.gov.in/Forms-PMSBY.aspx.

The participating banks are offering application to the scheme through SMS or net banking. The individual needs to submit the form and the Aadhar card.
The following are the steps to enrol to the scheme through SMS:

  • The individual will receive the activation SMS.
  • The individual must respond to the SMS as ‘PMSBY Y’.
  • The individual will receive the acknowledgement message.
  • The Bank will process the request with the information available in the savings account.

Points to be noted:

  • The bank will obtain the demographic details of the nominee, nominee relationship and date of birth from the savings account. In case the information is not available then the individual will have to go to the nearest branch to apply for the scheme.
  • In case of failure of the auto-debit transaction, the insurance cover ceases to be in force.

The following are the steps to enrol to the scheme through Net Banking:

  • Login to the internet banking account.
  • Click on Insurance.
  • Identify the account that will be used for paying the premium.
  • Verify all the details and confirm.
  • Download the acknowledgement and save it for future reference.

Points to be noted
The individual can choose to replicate the nominee details as appearing in the savings bank account or can opt for a new nominee.

What Is The Procedure For Raising A Claim?

In the event of an unfortunate incident like an accident, drowning, etc. the same must be reported to the police. In all other cases, the hospital record evidencing the event must be available.
In case of death, the claim can be filed by the nominee/ appointee as per the enrolment form or by the legal heirs in case of no nominee. The claim for disability will be credited in the bank account of the individual. In case of death, it will be credited to the bank account of the nominee/legal heir.
The claims form can be downloaded at https://www.jansuraksha.gov.in/Forms-PMSBY.aspx.

Can The Scheme Be Terminated?

The Scheme will be terminated in the happening of any of the following events:

  • The individual turns 70.
  • Closure of a bank account or insufficiency of balance to keep insurance alive.
  • In case of multiple bank accounts and receipt of the premium is inadvertently received by the insurance company, the insurance cover will be restricted to one account and the premium to be forfeited.

List of Participating Banks

  • Allahabad Bank
  • Axis Bank
  • Bank of India
  • Bank of Maharashtra
  • Bharatiya Mahila Bank
  • Canara Bank
  • Central Bank
  • Corporation Bank
  • Dena Bank
  • Federal Bank
  • HDFC Bank
  • ICICI Bank
  • IDBI Bank
  • IndusInd Bank
  • Kerala Gramin Bank
  • Kotak Bank
  • Oriental Bank of Commerce
  • Punjab and Sind Bank
  • Punjab National Bank
  • South Indian Bank
  • State Bank of Hyderabad
  • State Bank of India
  • State Bank of Travancore
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank

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