The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is one of the cheapest and most popular accident insurance plans in India. The Pradhan Mantri Suraksha Bima Yojana (PMSBY) policy, launched by Government of India in May 2015, aimed to provide affordable accidental death and disability cover to all the bank account holders in the country particularly keep benefit for economically weaker section/rural population. So far, the PMSBY policy is operated by Department Financial Services from Ministry of Finance in 2026 and continues to be one of India’s key financial inclusion measures and social safety nets.

This article explains what are the ingredients with which you can prepare your perfect meal plan with PMSBY (every thing you want to know about eligibility, premium, coverage, claim process, renewal and FAQ), so that none of your questions left behind before making a call at the time of subscription in 2026.

What is the PMSBY Policy?

PMSBY- The Pradhan Mantri Suraksha Bima Yojana is a one-year personal accident insurance policy (Renewable each year). While life insurance products cover death from any cause, the PMSBY policy only covers accidents this makes it a cheap add-on rather than a substitute for complete life insurance. The premium levied for the scheme has been calculated using an actuarial number, including all risk factors considered along with existing mortality.

PMSBY is an annually renewable policy, so subscribers will need to pay the annual premium to keep this cover in force. It is available with public sector banks, private sector banks and post offices; the subscription is linked to a subscriber’s savings account via auto-debit.

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Key Features of the PMSBY Policy in 2026

What makes the PMSBY policy unique is its ease of understanding and low premium. These defining features make this scheme so popular among the citizens of India.

• Lowest premium – The PMSBY policy is affordable even to the lowest income groups at Rs. 20/year (Rs. 19 for electronic/voluntary enrolment via mobile/internet banking).
• Coverage – The PMSBY gives a cover of Rs. 2 lakh for accidental death or total permanent disability.
• Automatic renewal: The PMSBY coverage is for a period of one year from 1st June to 31st May, subject to the payment of an annual premium which is auto-debited from the bank account linked to your insurance policy.
• Eligibility criteria for PMSBY- Simple eligibility – PEEPS aged 18 to 70, Final members just require a bank account (in favour of the member) and consent for auto-debit is required for joining.
• No medical tests needed – Unlike several private accident insurance policies, PMSBY does not require going through any health check-up to apply for the policy.
• Excess to existing cover – Insurance under the scheme will provide insurance in excess of amount insured under any other insurance policy already covered by the subscriber.

Eligibility Criteria for the PMSBY Policy

An individual is eligible to subscribe to PMSBY policy only if he/she can fulfil the following criteria:

• The applicant should have a savings bank account with any NeoBank or Post office which is the participant under this scheme.
• Age limit: 18 years (completed) to 70 years (nearest birthday)
• The candidate will have to consent to be a part of the scheme and facilitate auto-debit of premium.
• When one individual has more than one savings bank account in the same or different banks he/she can join his/her PMSBY policy through a single savings bank account.
• While Aadhaar is not a requirement for enrolment in the scheme, it has been given precedence as primary KYC document of the bank account.

PMSBY Policy: Premium and Coverage Table

The table below gives the basic financial details of how PMSBY works in 2026.

Particulars	Details
Scheme Name	Pradhan Mantri Suraksha Bima Yojana (PMSBY Policy)
Launch Date	May 9, 2015
Administering Body	Department of Financial Services, Ministry of Finance, Government of India
Eligible Age	18 to 70 years
Annual Premium (Offline)	Rs. 20 per year
Annual Premium (Electronic mode)	Rs. 19 per year
Coverage Period	June 1 to May 31 (renewable annually)
Cover for Accidental Death	Rs. 2 lakh
Cover for Total & Permanent Disability	Rs. 2 lakh
Cover for Partial Disability	Rs. 1 lakh
Mode of Premium Payment	Auto-debit from linked bank account
Number of Accounts Allowed	Only one account per subscriber
Medical Examination	Not required
Nomination Facility	Available

The PMSBY policy can be easily touted as one of the cheapest accident insurance product available in India today and this table just makes things absolutely clear.

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Benefits Offered Under the PMSBY Policy

The main attraction of the PMSBY policy is how much coverage you get in proportion to what you pay. Official details claimed that in case of unfortunate death, a sum of Rs. 2 lakh is payable to the nominee under the scheme.

In case of total and irrecoverable loss of both the eyes, or loss of use of both hand or foot and also for simultaneous permanent incapacity for work due to unfortunate incident causing Only one eye blindness + limb (use) disability is covered up to Rs. 2 lakh which can be claimed by the subscriber. In case partial, total and permanent blind using one eye or loss of use of a hand or leg, a sum of Rs. 1 lakh is recoverable by the subscriber.

What the PMSBY Policy Covers And Does Not Cover It is important to know what a PMSBY policy covers and does not cover. Similar losses are also covered as per the scheme and are assumed to be accidents. Loss of life or loss of any body part due to any natural calamity is also included in this scheme. The PMSBY policy provides coverage for death due to murder but not for deaths due to suicide.

How to Enrol in the PMSBY Policy

Enrolling in the PMSBY policy is a straightforward process:

• Go to your bank branch or sign in on the net banking/mobile banking application.
• Enroll for PMSBY or Pradhan Mantri Bima Yojana
• On the Application Form, enter your name, details of nominee and bank account information.
• Giving your approval for annual auto debit of premium amount
• Step 5: Wait for the Approval – Enrolment in the PMSBY policy is generally approved in a couple of working days.

Banks also enable self- subscription on the Jan Suraksha portal apart from subscribing via internet banking under the insurance tab of schemes launched by Prime Minister Bima Yojana. It has made the PMSBY scheme much easier for digital users to access, and also makes them eligible for their subsequently discounted electronic premium rate.

PMSBY Policy Renewal Process

The PMSBY policy is a annual term insurance product. Thus, it needs to be renewed every year. The renewal is automatic as long as the subscriber has balanced enough money in a bank account that they have linked to the service. The premium, which is determined from time to time for the renewal of coverage under the scheme, shall be deducted every year after May 25 but not later than June 1 each year.

In case of auto-debit unsuccessful due to insufficient balance in account, the PMSBY policy cover lapses that year. That said, subs can typically re-enrol for the following years if they remain eligible. One should keep sufficient balance for PMSBY every year by the end of May so that one never misses an update and continues receiving all benefits.

Claim Process Under the PMSBY Policy

In the unfortunate case of a death or disability due to any reason, the nominee or subscriber would have to go through a prescribed claims process in order to receive benefits of the PMSBY policy:

• Inform the bank – Contact the bank branch from which you availed the PMSBY policy immediately after your accident.
• Step 1: Get claim forms – One has to visit the bank branch where the policy was issued or access through Jan Suraksha portal and fill the claim application form.
• Documentation Submission – Death certificate, FIR/post-mortem report (in case of accidental death claims), disability certificate (for disability claims), nominee bank details etc.
• Confirmation by bank – the claim raised is confirmed and submitted to the insurance company aligned with PMSBY policy of a particular bank.
• Claim Settlement – The entire amount is credited to the bank account of nominee or subscriber, after approval

Usually, it is better to file the claim under PMSBY policy within 30 days of the accident so that there are no avoidable delays in processing.

Why the PMSBY Policy Matters in 2026

The PMSBY policy is a decade old and in that time it has been a trailblazer for financial inclusion in India. The program has surpassed 44 million enrollments and settled over 135,000 claims paying out more than ₹2,700 crore during the FY 2024-25 financial year. Such scale is a testament to the faith of millions of Indians in PMSBY as an accident cover.

PMSBY policy came soon after the successful implementation of Pradhan Mantri Jan Dhan Yojana, which got millions of underbanked Indians into the formal banking system (in fact, he linked PMSBY with 1Odishaplan to PMJDY accounts and PMSBY policy offered seamless enrolment through auto-debit). As India progresses towards its larger developmental ambitions, plans like the PMSBY policy are expected to continue as a fulcrum for India’s insurance inclusion.

PMSBY– An affordable and simple option for anyone be it salaried, self-employed and in the unorganised sector to provide a basic financial safety net to the family in case of accidental death or disability. With premium just Rs. 20 a year, there are hardly any reasons for an eligible bank account holder not to subscribe to the PMSBY policy.

Conclusion

The PMSBY scheme is a great demonstration of how one can create a large social insurance net through well-designed insurance product at the lowest cost possible. An easy to buy policy, through banks and digital platforms, earlier having a claims process of Rs 20 for which you get coverage of Rs.2 lakh till October 2023 makes PMSBY an indispensable financial product that every Indian citizen with the eligibility norm should have in place in calendar year 2026.

If you open a bank account for the first time of your life or are an old man hoping to add some money insurance in case your death, signing up for this PMSBY plan is a SMALL step but can go a long way in keeping your family safe and sound in future.

FAQs