Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Overview

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a governmentbacked accident insurance scheme launched on 31 May 2015. It aims to provide inexpensive personal accident cover to every Indian citizen aged 18 to 70 years who holds a savings bank account (including Jan Dhan, Savings, or Current accounts). The scheme is administered by the Ministry of Finance in partnership with the Insurance Regulatory and Development Authority of India (IRDAI) and a network of publicsector insurers.

Key objectives include:

• Extending a safety net to low and middleincome workers.
• Encouraging the habit of insurance among the uninsured.
• Providing quick financial assistance in case of accidental death or disability.

Eligibility

To be eligible for PMSBY, an individual must meet all of the following criteria:

1. Age between 18 and 70 years on the date of enrollment.
2. Holder of a savings bank account (including Jan Dhan, Savings, or Current accounts) that is linked with Aadhaar.
3. Have a valid mobile number registered with the bank.
4. Consent to the automatic annual premium deduction of INR10 from the linked account.

There is no upper limit on the number of policies a person can hold, but a single individual can only have one PMSBY policy linked to a particular bank account.

Coverage & Benefits

PMSBY offers a simple, threetier benefit structure:

The scheme does not cover selfinflicted injuries, acts of war, or natural causes like disease. It is strictly an accidental insurance product.

Premium & Payment

The annual premium is a fixed INR10 per policyholder. The amount is autodebited on the policy renewal date (usually the last working day of the month) from the bank account linked to the scheme. If the balance is insufficient, the policy lapses automatically for that year but can be reenrolled in the next cycle without any additional paperwork.

Key points about the premium:

• No medical examination is required.
• No documentation other than the bank-Aadhaar link.
• Zero claimfree premium refund the amount is not returned even if no claim is made.

How to Apply

The enrollment process is straightforward and can be completed in three ways:

1. At the Bank Branch

1. Visit any participating bank branch with your Aadhaar card and a valid mobile number.
2. Fill the PMSBY enrollment form provided by the bank.
3. The bank will verify Aadhaar, link it to your account, and deduct INR10 immediately.

2. Through Internet Banking

1. Log in to your banks internet banking portal.
2. Navigate to the Insurance or PMSBY section.
3. Follow the onscreen instructions to link Aadhaar and authorize the premium deduction.

3. Via Mobile Banking Apps

1. Open your banks mobile app and go to the Insurance menu.
2. Select PMSBY and complete the Aadhaar authentication using OTP.
3. Confirm the premium payment of INR10.

Once enrolled, you will receive an SMS confirmation with the policy number and the next renewal date.

Claim Process

In the unfortunate event of an accident, the following steps are required to file a claim:

1. Notification: The nominee or the policyholder (if alive) must inform the insurer within 30 days of the accident.
2. Documentation: Submit the claim form along with the original police FIR (if applicable), death certificate or medical certificate, and a copy of the policy holders bank statement.
3. Assessment: The insurer may appoint a medical panel to evaluate the extent of disability.
4. Settlement: Upon verification, the insurer transfers the benefit amount directly to the nominees bank account within 15 days of claim approval.

All claims are processed free of charge; the policyholder does not need to pay any additional fees.

Frequently Asked Questions

Is PMSBY portable across banks?

Yes. If you change banks, you must cancel the existing policy and reenroll with the new bank. The coverage restarts from the date of new enrollment.

Can I increase the sum assured?

No. PMSBY offers a fixed sum assured of INR2,00,000 for death/PTD and INR1,00,000 for PPD. For higher coverage, other government schemes like Arogya Suraksha Pensions/Private insurers can be considered.

What happens if I miss the premium payment?

If the autodebit fails, the policy lapses for that year. You can reenroll in the next enrollment window (typically in MayJune) without any penalty.

Is the benefit taxexempt?

The accidental death benefit is taxfree under Section10(10D) of the Income Tax Act, provided the premium does not exceed INR100 per year. Since PMSBYs premium is only INR10, the benefit qualifies for exemption.

Who is the nominee?

The policyholder can nominate any person while registering. If no nominee is specified, the claim will be processed as per the legal heirs succession rules.