Pradhan Mantri Suraksha Bima Yojana (PMSBY): Accident Insurance at ₹20 a Year
Last updated: 2026-11-13 · MockMentor
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a one-year, renewable accident insurance scheme launched on 9 May 2015. For ₹20 a year, it covers accidental death and disability.
In one line: ₹20 a year buys ₹2 lakh of accident cover for any bank account holder aged 18 to 70.
At a glance
| Item | Details |
|---|---|
| Launched | 9 May 2015 |
| Insurers | Public sector and other general insurers tied up with banks |
| Age | 18 to 70 |
| Premium | ₹20 a year (₹12 until May 2022) |
| Cover period | 1 June to 31 May |
| Lien period | None |
Benefits
| Event | Payout |
|---|---|
| Accidental death | ₹2 lakh |
| Loss of both eyes, both hands or feet, or one eye and one hand or foot | ₹2 lakh |
| Loss of one eye, or of one hand or foot | ₹1 lakh |
Key rules
- No cover for suicide, self-injury or natural death, and no hospitalisation cost.
- No pro-rata premium: the full ₹20 is paid even when joining mid-year.
- Only one claim is paid even with several enrolments.
Possible exam questions
- Assess the Jan Suraksha schemes as a tool of social security for the poor.
- Why do low-premium insurance schemes face high lapse rates, and how can this be fixed?
Complete notes in our courses: this page gives the essentials. The Super-Elite and Elite courses carry the full chapter with every update merged in, plus practice MCQs. Compare the courses.
More in Finance Ministry schemes
- National Pension System (NPS)
- Unified Pension Scheme (UPS)
- Atal Pension Yojana (APY)
- PM Vaya Vandana Yojana (PMVVY)
- PM Jeevan Jyoti Bima Yojana (PMJJBY)
Prepare with MockMentor
RBI Grade A/B 2027 Super-Elite Course (₹7,500) – Complete Phase 1 and Phase 2 preparation with the Descriptive Writing Programme. 365 days validity.