Pradhan Mantri Suraksha Bima Yojana (PMSBY)

What is PMSBY?

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a governmentbacked accidental death and disability insurance scheme launched on 1May2015. It is designed to provide a modest but essential financial safety net to the informal sector, salaried workers and other individuals who might not otherwise have access to affordable insurance.

Key points:

• Annual premium of (shoot, don't need that many) actually the premium is only **** (i.e., ).
  (Sorry, the symbol got repeatedjust remember the premium is per year.)
• Coverage for accidental death, total permanent disability (TPD) and partial permanent disability (PPD).
• Automatic renewal each year unless the member opts out.
• Implemented through banks, post offices and selected insurance intermediaries.

Eligibility Criteria

To be eligible for PMSBY, a person must satisfy all of the following:

• Be a resident Indian aged **18 to 70 years** on the first day of the policy year.
• Have a **savings bank account** (including a Jan Dhan account) with a participating bank.
• Be a **bank account holder** who has opted for autodebit of the premium.
• Not be covered under any other accidental death or disability policy with a higher sum assured.

Benefits & Coverage

All claims are paid taxfree under Section10(10) of the Income Tax Act, 1961.

Premium & Payment Details

The premium is a **flat ()** per year, deducted automatically from the members savings account on **1st March** (or the nearest business day). The amount is nominal, making the scheme affordable for lowincome households.

How to Enrol in PMSBY

1. Visit any branch of a participating bank or post office where you hold a savings account.
2. Ask the bank officer for the PMSBY enrolment form or fill the request online through the banks netbanking portal.
3. Provide your Aadhaar number (optional but recommended) and sign the consent for autodebit.
4. The bank will forward your details to the insurer (Life Insurance Corporation of India LIC). You will receive a welcome SMS/email confirming the policy.
5. From the next policy year onward, the premium will be deducted automatically on 1March.

Enrolment is free of charge; only the annual premium is levied.

Claim Process

What to do after an accident

• Report the incident to the nearest police station and obtain a FIR (First Information Report).
• Contact the bank where the policy is held; the bank will forward the claim to the insurer.
• Submit the following documents to the insurer:
  • Original policy document (or policy number).
  • Copy of FIR and medical certification of disability (if applicable).
  • Bank account details of the nominee/insured.
  • Any additional documents requested by the insurer.

Timeframe

Once all documents are verified, the insurer settles the claim within **15 days** for death benefits and **30 days** for disability benefits.

Frequently Asked Questions

Can I optout of the scheme?

Yes. You can opt out by submitting a written request to your bank before 31December of the policy year. The request is effective from 1January of the next year.

What if I change my bank account?

You must enrol again with the new bank. The policy does not automatically transfer between banks.

Is the sum assured sufficient for my family?

PMSBY is intended as a basic safety net. Many families supplement it with other life or health insurance policies for higher coverage.

Does PMSBY cover natural death?

No. The scheme only covers death or disability caused by accidents.

Can a senior citizen (above 70) enrol?

Eligibility ends at 70years. Persons older than 70 must look for other insurance options.