Life is unpredictable, and accidents can occur without warning. For many middle-class and low-income families, the sudden loss or disability of the primary earner can lead to severe financial hardship. To provide affordable financial protection, the Government of India launched the Pradhan Mantri Suraksha Bima Yojana (PMSBY).
What makes this scheme especially attractive is its extremely low premium—so low that it costs less than a cup of tea annually. Here’s a detailed guide on how the scheme works, who can apply, and what benefits you can receive.
PM Suraksha Bima Yojana is a government-backed accidental insurance scheme that provides financial assistance in case of death or disability due to an accident.
Initially launched with an annual premium of ₹12, the cost was later revised to ₹20 per year, making it one of the most affordable insurance covers in India. On a monthly basis, this works out to less than ₹2.
The scheme is designed to ensure that even economically weaker sections can access basic accident insurance protection.
The PMSBY benefit structure is divided into two main categories:
If the insured person dies due to an accident, the nominee receives a lump sum of ₹2 lakh.
Permanent total disability (such as loss of both eyes or both limbs): ₹2 lakh
Permanent partial disability: ₹1 lakh
This financial support can provide crucial relief to families during difficult times.
Joining PMSBY is simple, but applicants must meet certain requirements:
Age must be between 18 and 70 years
Must have a savings bank account or post office account
Must give consent for auto-debit of the premium
Premium of ₹20 is automatically deducted every year on or before 1 June
The simplicity of enrollment has made PMSBY one of the most widely adopted social security schemes in the country.
You don’t need to visit multiple offices to enroll. The process is straightforward.
Visit your bank branch where you hold a savings account
Fill out the PMSBY enrollment form
Submit and activate auto-debit consent
Most banks now allow activation through:
Net banking
Mobile banking apps
Internet banking portals
Once enrolled, your coverage starts as per the scheme cycle.
Before subscribing, keep these key rules in mind:
The insurance is valid for one year only (1 June to 31 May)
It must be renewed annually
If your bank balance is insufficient and the premium is not deducted, the policy may lapse
Even if you hold multiple bank accounts, you can enroll through only one account
Staying aware of these conditions ensures uninterrupted coverage.
Private accident insurance policies often come with higher premiums, which may be unaffordable for many households. PMSBY bridges this gap by offering low-cost, high-impact protection backed by the government.
For just ₹20 a year, families can secure meaningful financial support in case of unforeseen accidents—making it a practical safety net for millions.
The Pradhan Mantri Suraksha Bima Yojana is a small investment that can provide significant peace of mind. With minimal paperwork, automatic renewal, and substantial coverage, it stands out as one of India’s most accessible insurance schemes.
If you have not enrolled yet, consider contacting your bank or activating it through net banking today. A tiny annual premium could make a big difference to your family’s financial security.
