Pradhan Mantri Suraksha Bima Yojana (PMSBY): Complete Guide to Benefits, Eligibility, and Impact

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a transformative government-backed accident insurance scheme in India, designed to provide affordable financial protection against accidental death and disability. Launched as part of the Government of India’s vision to ensure financial inclusion and social security, PMSBY has become a cornerstone of accessible insurance for millions of citizens. This comprehensive guide covers everything you need to know about PMSBY, including its launch date, key features, eligibility, benefits, vision, impact, frequently asked questions (FAQs), and a set of 10 multiple-choice questions (MCQs) with detailed solutions to test your understanding.

What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a one-year personal accident insurance scheme that provides coverage for accidental death and disability due to accidents. Administered by the Ministry of Finance, Government of India, the scheme is renewable annually and offered through Public Sector General Insurance Companies (PSGICs) and other general insurance providers in collaboration with participating banks and post offices. With an affordable premium of just ₹20 per annum, PMSBY aims to make accident insurance accessible to all, particularly low-income and underserved sections of society.

Launch Date and Key Figures

PMSBY was launched on May 9, 2015, by Prime Minister Shri Narendra Modi during the Union Budget 2015-16. The scheme officially began providing coverage from June 1, 2015, aligning with the government’s broader financial inclusion initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY).

Key Features of PMSBY

PMSBY is designed to be simple, affordable, and inclusive. Here are its key features:

1. Affordable Premium: The annual premium is ₹20 per member, auto-debited from the policyholder’s savings bank or post office account. This low cost ensures accessibility across income groups.
2. Coverage Period: The policy provides one-year coverage from June 1 to May 31, renewable annually. For those enrolling after June 1, coverage begins once the premium is debited and continues until May 31 of the following year.
3. Coverage Details:
   • Accidental Death: ₹2 lakh paid to the nominee in case of the policyholder’s death due to an accident.
   • Total and Permanent Disability: ₹2 lakh for complete loss of both eyes, loss of use of both hands or feet, or total paralysis.
   • Partial Disability: ₹1 lakh for irrecoverable loss of sight in one eye or loss of use of one hand or foot.
4. Auto-Debit Facility: The premium is automatically debited from the policyholder’s bank or post office account between May 25 and May 31 each year, unless the policyholder opts out.
5. No Medical Examination: Enrollment does not require a medical check-up, making it hassle-free.
6. Tax Benefits: Premiums paid are eligible for deduction under Section 80C of the Income Tax Act, 1961, and the sum insured up to ₹1.5 lakh is non-taxable under Section 10(10D).
7. Wide Accessibility: Available to individuals aged 18 to 70 years with a savings account in a participating bank or post office.

Eligibility Criteria for PMSBY

To enroll in PMSBY, individuals must meet the following criteria:

• Age: Between 18 and 70 years.
• Bank Account: Must hold a savings bank or post office account (single or joint).
• Aadhaar: Aadhaar card is the primary KYC document for verification.
• Enrollment: Consent for auto-debit of the ₹20 premium is mandatory.
• Single Account Rule: If an individual has multiple accounts, they can enroll through only one account.

Non-Resident Indians (NRIs) with eligible bank accounts in India can also enroll, but claim benefits are paid in Indian currency only.

How to Enroll in PMSBY

Enrolling in PMSBY is straightforward and can be done via SMS, internet banking, or in-person at a bank or post office. Below are the steps:

Via SMS:

1. Receive an activation SMS from your bank.
2. Reply with ‘PMSBY Y’ to activate the scheme.
3. Receive an acknowledgment message.
4. The bank processes the premium auto-debit from your savings account.

Via Internet Banking:

1. Log in to your bank’s internet banking portal.
2. Navigate to the insurance section.
3. Select the account for premium payment.
4. Review and confirm the details.
5. Download the confirmation receipt and note the reference number.

Via Bank/Post Office:

1. Visit your bank or post office branch.
2. Fill out the PMSBY application form (available in multiple languages, including English, Hindi, Bengali, Marathi, Oriya, Telugu, Tamil, and Gujarati).
3. Submit valid proof of identity (e.g., Aadhaar card) and accurate nominee details.
4. Consent to the auto-debit facility for the premium.

Vision of PMSBY

The vision of PMSBY is to create a universal social security system in India, ensuring financial protection for all citizens, especially those in the unorganized and low-income sectors. By offering affordable accident insurance, the scheme aims to:

• Promote Financial Inclusion: Encourage savings account usage and integrate insurance into the financial planning of underserved populations.
• Provide Financial Security: Mitigate the economic impact of accidental death or disability on families.
• Reduce Financial Vulnerability: Protect low-income households from falling into debt or poverty due to unforeseen accidents.
• Support National Development: Foster a financially secure population to contribute to India’s economic growth.

Impact of PMSBY

Since its launch in 2015, PMSBY has had a significant impact on India’s social security landscape:

• Mass Enrollment: As of recent data, over 28 crore individuals have enrolled in PMSBY, reflecting its widespread acceptance.
• Affordable Access: The ₹20 premium has made accident insurance accessible to millions, particularly in rural and semi-urban areas.
• Financial Relief: The scheme has provided timely financial support to families affected by accidental deaths or disabilities, reducing economic distress.
• Increased Awareness: PMSBY, alongside schemes like PMJDY and PMJJBY, has raised awareness about insurance and financial planning among underserved communities.
• Simplified Claims Process: The scheme’s tie-up with banks and post offices has streamlined enrollment and claims, enhancing trust in government-backed insurance.

Despite its success, challenges like low claim settlement ratios and lack of awareness in remote areas remain, but ongoing efforts by the government and insurance providers aim to address these gaps.

Frequently Asked Questions (FAQs)

1. What is the full form of PMSBY?
   The full form of PMSBY is Pradhan Mantri Suraksha Bima Yojana.
2. Who is eligible for PMSBY?
   Individuals aged 18 to 70 years with a savings bank or post office account can enroll.
3. What is the premium for PMSBY?
   The annual premium is ₹20, auto-debited from the account.
4. What does PMSBY cover?
   It covers accidental death (₹2 lakh), total permanent disability (₹2 lakh), and partial disability (₹1 lakh).
5. Does PMSBY cover natural calamities?
   Yes, deaths or disabilities caused by natural calamities (considered accidents) are covered, but suicide-related deaths are not.
6. Can NRIs enroll in PMSBY?
   Yes, NRIs with eligible bank accounts in India can enroll, but claim benefits are paid in Indian currency.
7. How is the premium paid?
   The premium is auto-debited annually from the policyholder’s savings account between May 25 and May 31.
8. What happens if the premium is not paid?
   If the premium is not paid within 30 days of the due date, the policy terminates.
9. Are there tax benefits under PMSBY?
   Yes, premiums are eligible for deduction under Section 80C, and the sum insured up to ₹1.5 lakh is non-taxable under Section 10(10D).
10. Can I enroll in PMSBY through multiple bank accounts?
    No, enrollment is allowed through only one savings account.

Top 20 MCQs on PMSBY with Detailed Solutions

Below are 10 multiple-choice questions to test your knowledge of PMSBY, along with detailed solutions.

1. What is the annual premium for PMSBY?
   A) ₹12
   B) ₹20
   C) ₹100
   D) ₹50
   Answer: B) ₹20
   Solution: The annual premium for PMSBY is ₹20 per member, auto-debited from the savings account.
2. When was PMSBY launched?
   A) May 9, 2015
   B) June 1, 2016
   C) January 1, 2015
   D) April 1, 2014
   Answer: A) May 9, 2015
   Solution: PMSBY was launched by Prime Minister Narendra Modi on May 9, 2015, with coverage starting from June 1, 2015.
3. What is the coverage amount for accidental death under PMSBY?
   A) ₹1 lakh
   B) ₹2 lakh
   C) ₹3 lakh
   D) ₹5 lakh
   Answer: B) ₹2 lakh
   Solution: PMSBY provides ₹2 lakh for accidental death or total permanent disability.
4. Who can enroll in PMSBY?
   A) Individuals aged 18–60 years
   B) Individuals aged 18–70 years
   C) Individuals aged 21–65 years
   D) Only senior citizens
   Answer: B) Individuals aged 18–70 years
   Solution: The scheme is open to individuals aged 18 to 70 years with a savings account.
5. What is the coverage for partial disability under PMSBY?
   A) ₹50,000
   B) ₹1 lakh
   C) ₹2 lakh
   D) No coverage
   Answer: B) ₹1 lakh
   Solution: PMSBY provides ₹1 lakh for partial disability, such as loss of sight in one eye or loss of use of one hand or foot.
6. Which document is primarily required for PMSBY enrollment?
   A) PAN card
   B) Aadhaar card
   C) Voter ID
   D) Passport
   Answer: B) Aadhaar card
   Solution: Aadhaar is the primary KYC document for enrolling in PMSBY.
7. Does PMSBY cover death due to natural calamities?
   A) Yes
   B) No
   C) Only earthquakes
   D) Only floods
   Answer: A) Yes
   Solution: Deaths or disabilities caused by natural calamities (considered accidents) are covered under PMSBY.
8. How is the PMSBY premium paid?
   A) Cash payment
   B) Auto-debit from savings account
   C) Online payment only
   D) Cheque payment
   Answer: B) Auto-debit from savings account
   Solution: The ₹20 premium is auto-debited annually from the policyholder’s savings account.
9. What happens if the policyholder changes their bank account?
   A) Policy continues automatically
   B) Policy terminates unless updated within 30 days
   C) Premium is refunded
   D) No impact on coverage
   Answer: B) Policy terminates unless updated within 30 days
   Solution: The policyholder must inform the insurance company of a change in bank account within 30 days, or the policy will terminate.
10. Which section of the Income Tax Act allows deduction for PMSBY premiums?
    A) Section 80D
    B) Section 80C
    C) Section 10A
    D) Section 44AD
    Answer: B) Section 80C
    Solution: Premiums paid for PMSBY are eligible for deduction under Section 80C of the Income Tax Act, 1961.11. When was the Pradhan Mantri Suraksha Bima Yojana (PMSBY) officially launched? a) May 1, 2014 b) April 15, 2015 c) May 9, 2015 d) June 1, 2016

    **Solution:**
    The correct answer is **c) May 9, 2015**. PMSBY was formally launched by Prime Minister Narendra Modi on this date in Kolkata.
    

    12. What is the annual premium payable for the Pradhan Mantri Suraksha Bima Yojana (PMSBY)? a) Rs. 12 b) Rs. 20 c) Rs. 330 d) Rs. 436

    **Solution:**
    The correct answer is **b) Rs. 20**. The scheme offers coverage at an annual premium of Rs. 20 per member.
    

    13. What is the maximum age limit to be eligible for Pradhan Mantri Suraksha Bima Yojana (PMSBY)? a) 50 years b) 60 years c) 65 years d) 70 years

    **Solution:**
    The correct answer is **d) 70 years**. Individuals between 18 and 70 years of age are eligible to enroll in PMSBY.
    

    14. In case of accidental death under PMSBY, what is the sum assured payable to the nominee? a) Rs. 1 Lakh b) Rs. 2 Lakh c) Rs. 5 Lakh d) Rs. 10 Lakh

    **Solution:**
    The correct answer is **b) Rs. 2 Lakh**. For accidental death, the nominee receives a sum assured of Rs. 2 Lakh.
    

    15. Which of the following is NOT covered under Pradhan Mantri Suraksha Bima Yojana (PMSBY)? a) Accidental death due to natural calamity b) Permanent total disability due to accident c) Death due to suicide d) Partial permanent disability due to accident

    **Solution:**
    The correct answer is **c) Death due to suicide**. Suicide is an exclusion under PMSBY, while accidental death and various forms of accidental disability are covered.
    

    16. How is the premium for PMSBY paid? a) Through manual cash deposit at the bank b) Via online fund transfer (NEFT/RTGS) c) Through auto-debit facility from the bank account d) By post-dated cheques

    **Solution:**
    The correct answer is **c) Through auto-debit facility from the bank account**. The annual premium is automatically debited from the subscriber's bank account.
    

    17. What is the coverage period for PMSBY, which is annually renewable? a) January 1st to December 31st b) April 1st to March 31st c) June 1st to May 31st d) October 1st to September 30th

    **Solution:**
    The correct answer is **c) June 1st to May 31st**. The cover is valid for one year, starting from June 1st and ending on May 31st of the next year.
    

    18. If an individual has multiple bank accounts, how many PMSBY policies can they avail? a) As many as they have bank accounts b) Only one policy across all bank accounts c) Two policies at maximum d) Depends on the bank’s discretion

    **Solution:**
    The correct answer is **b) Only one policy across all bank accounts**. An individual is eligible to join the scheme through one bank account only.
    

    19. In case of total and irrecoverable loss of sight of one eye or loss of use of one hand or foot due to an accident, what is the compensation under PMSBY? a) Rs. 50,000 b) Rs. 1 Lakh c) Rs. 1.5 Lakh d) Rs. 2 Lakh

    **Solution:**
    The correct answer is **b) Rs. 1 Lakh**. For partial permanent disability, such as the loss of sight of one eye or loss of use of one hand or foot, the compensation is Rs. 1 Lakh.
    

    20. Which government ministry is responsible for the Pradhan Mantri Suraksha Bima Yojana? a) Ministry of Health and Family Welfare b) Ministry of Home Affairs c) Ministry of Finance d) Ministry of Rural Development

    **Solution:**
    The correct answer is **c) Ministry of Finance**. PMSBY is a government-backed scheme administered by the Ministry of Finance.

Conclusion

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a landmark initiative that has revolutionized access to accident insurance in India. With its low premium, wide coverage, and simple enrollment process, it empowers millions to secure their families against unforeseen accidents. By fostering financial inclusion and providing a safety net, PMSBY aligns with India’s vision of a financially secure and resilient population. Enroll today through your bank or post office to take advantage of this affordable and impactful scheme.

For more details, visit jansuraksha.gov.in or contact your nearest bank or post office.