In India, a large percentage of the population works in unorganized sectors — daily wage earners, small shopkeepers, delivery workers, and laborers who have no formal insurance protection. For families that depend entirely on a single earning member, even a minor accident can cause severe financial stress. Understanding this ground reality, the Government of India launched the PMSBY Accident Insurance Scheme to provide affordable and reliable accidental insurance coverage to every citizen.
PMSBY stands for Pradhan Mantri Suraksha Bima Yojana, a social security insurance plan designed to protect individuals and their families from the financial consequences of accidental death or disability. For just a very small yearly premium, the scheme offers high coverage, ensuring that families remain financially stable even in difficult times.
This guide explains the PMSBY Accident Insurance Scheme in simple human language — what it is, who can apply, benefits, premium details, claim procedure, and everything you need to know before enrolling.
What Is the PMSBY Accident Insurance Scheme?
The PMSBY Accident Insurance Scheme is a government-backed accident insurance plan launched in 2015 under the Jan Suraksha initiative. It offers accidental death and disability insurance at an extremely low premium.
Key Features of PMSBY
- Premium: ₹20 per year (revised from ₹12)
- Coverage:
- ₹2 lakh for accidental death
- ₹2 lakh for permanent total disability
- ₹1 lakh for partial disability
- Age Limit: 18–70 years
- Renewable annually
- Auto-debit from bank account
PMSBY is one of the most affordable accident insurance plans in India, making it accessible even to low-income households.
Objectives of PMSBY Accident Insurance Scheme
The government introduced the scheme with clear objectives:
1. Provide Financial Protection After Accidents
Accidents can happen anytime — road accidents, workplace injuries, slip-and-fall incidents, or unexpected events. PMSBY ensures financial support during such situations.
2. Affordable Premium for Every Citizen
By keeping the premium extremely low, the scheme ensures even the poorest households can afford insurance coverage.
3. Promote Social Security Awareness
Millions of Indians were previously uninsured. PMSBY encourages people to take insurance seriously.
4. Reduce Economic Burden on Families
The payout helps the family manage expenses, clear debts, and maintain stability after the loss of an earning member.
Eligibility for PMSBY Accident Insurance Scheme
To enroll, individuals must meet the basic eligibility criteria.
1. Age Requirement
- Minimum: 18 years
- Maximum: 70 years
Enrollees must fall within this age bracket at the time of subscription.
2. Active Bank Account Required
The policy premium is auto-debited yearly, so a valid savings bank account is necessary.
3. Aadhaar Linkage
The bank account should ideally be linked with Aadhaar to avoid claim delays.
4. One Policy per Person
A person can take only one PMSBY policy, even if they have multiple bank accounts.
5. Auto-Debit Mandate
Subscribers must give consent for yearly auto-debit of the premium amount.
Coverage Under PMSBY Accident Insurance Scheme
The scheme covers accidental risks such as:
- Road accidents
- Accidental falls
- Industrial/workplace accidents
- Fire accidents
- Explosion-related injuries
- Drowning
- Natural calamities causing accidental injury
- Accidents involving vehicles, machinery, or tools
Coverage Amount
- ₹2,00,000 – Accidental death
- ₹2,00,000 – Permanent total disability
- ₹1,00,000 – Partial but permanent disability
This ensures both life protection and disability support.
What Is Not Covered Under PMSBY? (Exclusions)
Even though PMSBY is a generous scheme, certain conditions are not covered.
Exclusions Include:
- Suicide or self-inflicted injury
- Death due to natural causes or illness
- War or terrorism-related injuries
- Alcohol or drug-influenced accidents
- Criminal activities
- Non-accidental death
Claims are only accepted when the cause is clearly accidental.
Premium Details of PMSBY Accident Insurance Scheme (2025)
The annual premium for PMSBY is extremely low, making it the most affordable insurance plan in the country.
Premium Breakdown:
Total Premium: ₹20 per year
- Insurance Company Share
- Government Share
- Administrative Costs
The amount is automatically deducted from your bank account between May and June every year unless you cancel the policy.
How to Enroll in PMSBY Accident Insurance Scheme (Step-by-Step Guide)
Enrolling in PMSBY is simple and can be done in multiple ways.
1. Apply Through Your Bank Branch
Most nationalized, private, and rural banks offer PMSBY enrollment.
Steps:
- Visit your bank branch
- Ask for PMSBY enrollment form
- Fill basic details (name, address, age, Aadhaar, nominee information)
- Submit filled form
- Provide auto-debit consent
2. Apply Through Internet Banking
If your bank supports online PMSBY enrollment, follow these steps:
- Log in to your net banking
- Go to “Insurance Services”
- Select PMSBY
- Confirm personal details
- Provide auto-debit approval
- Submit
- Download acknowledgment receipt
3. Apply Through Mobile Banking / UPI Apps
Some banks allow PMSBY registration via apps such as:
- SBI YONO
- HDFC Mobile Banking
- ICICI iMobile
- Paytm Payments Bank
- Airtel Payments Bank
Simply navigate to Insurance → PMSBY → Enroll.
4. Apply Through Common Service Centres (CSC)
Residents in rural or remote areas can visit nearby CSC centres and apply via assistance from the operator.
Benefits of PMSBY Accident Insurance Scheme
The scheme provides multiple benefits beyond simple financial coverage.
1. High Coverage at Extremely Low Premium
For just ₹20 per year, getting ₹2 lakh coverage is unmatched in the insurance sector.
2. Financial Security for Families
In case of accidental death, the family receives monetary support quickly.
3. Disability Support
If the earning member becomes permanently disabled, PMSBY provides compensation to help with living expenses and treatment.
4. Nationwide Coverage
The policy is valid across India, regardless of the subscriber’s location.
5. Simple Claim Procedure
Minimal documents are required, making it easy for families to claim benefits.
6. Auto-Renewal Feature
Once enrolled, the policy renews every year automatically.
Nominee Details and Importance in PMSBY
Adding a nominee ensures immediate payout to the right person in case of the policyholder’s death.
Who Can Be a Nominee?
- Spouse
- Parents
- Children
- Legal guardian
Always keep nominee details updated.
Claim Procedure Under PMSBY Accident Insurance Scheme
Filing a claim is straightforward. Here’s how it works:
Step-by-Step PMSBY Claim Process
1. Inform the Bank or Insurance Company Immediately
Within 30 days of the accident.
2. Collect Required Documents
- Accident report
- Hospital records
- FIR (if applicable)
- Death certificate (in case of death)
- Disability certificate (issued by a government doctor)
- Policy number
- ID proof of the claimant
3. Submit Claim Form
Submit the PMSBY claim form along with documents to the bank or insurer.
4. Verification
The bank and insurance company verify the details.
5. Payout
Within weeks, the amount is transferred to the nominee or policyholder.
Important Points to Remember When Filing a Claim
- Claims must be filed within 30 days of the incident
- Disability claims must include a medically certified disability report
- Any mismatch in documents may delay the payout
- Fraudulent claims are rejected immediately
Comparison: PMSBY vs Regular Accident Insurance Policies
PMSBY
- Cost: ₹20/year
- Coverage: Up to ₹2 lakh
- Best for low-income groups
Regular Accident Insurance
- Cost: ₹500–₹5,000/year
- Coverage: ₹5 lakh–₹50 lakh
- More benefits but higher premium
PMSBY is ideal for people who need basic accident insurance at an affordable cost.
Who Should Definitely Enroll in PMSBY Accident Insurance Scheme?
This scheme is suitable for:
- Daily wage workers
- Laborers
- Farmers
- Delivery professionals
- Drivers and riders
- Homemakers (can also enroll)
- Students above 18
- People with unstable income
- Anyone who cannot afford regular insurance
Even if you already have a private insurance plan, PMSBY is an excellent add-on due to its extremely low cost.
Frequently Asked Questions (FAQs)
1. Is PMSBY only for low-income people?
No. Anyone between 18–70 years with a bank account can join the scheme.
2. Can I have multiple PMSBY policies?
No. Only one policy per person is allowed.
3. What happens if I don’t have enough money in my account during auto-debit?
Your policy may lapse. You can reactivate it by paying the premium manually.
4. Is PMSBY available through all banks?
Yes. Most national, private, regional, and cooperative banks offer this scheme.
5. Can I cancel the PMSBY policy anytime?
Yes. You can submit a cancellation request to your bank.
6. Is natural death covered under PMSBY?
No. Only accidental death and disability are covered.
Conclusion
The PMSBY Accident Insurance Scheme is one of the most thoughtful and affordable initiatives for ensuring financial safety in India. In a country where accidents are common and incomes are often unstable, this scheme provides families with critical support when they need it the most. For just a minimal yearly premium, individuals receive substantial insurance coverage that protects their loved ones from economic hardship.
If you or someone you know is still not enrolled, this is the right time to join. It’s simple, affordable, and immensely helpful. One small step can secure your family’s future.
