Pradhan Mantri Suraksha Bima Yojana (PMSBY, translation: ''Prime Minister's Safety Insurance Scheme'') is a government-backed

accident insurance Accident insurance is a type of insurance where the policy holder is paid directly in the event of an accident resulting in injury of the insured. The insured can spend the benefit payment however they choose. Accident insurance is complementary to ...

scheme in

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

. It was originally mentioned in the 2015 Budget speech by Finance Minister Late

Arun Jaitley Arun Jaitley (28 December 1952 – 24 August 2019) was an Indian politician and attorney. A member of the Bharatiya Janata Party, Jaitley served as the Minister of Finance and Corporate Affairs of the Government of India from 2014 to 2019. Jai ...

in February 2015. It was formally launched by the Prime Minister

Narendra Modi Narendra Damodardas Modi (; born 17 September 1950) is an Indian politician serving as the 14th and current Prime Minister of India since 2014. Modi was the Chief Minister of Gujarat from 2001 to 2014 and is the Member of Parliament fro ...

on 8 May in

Kolkata Kolkata (, or , ; also known as Calcutta , the official name until 2001) is the capital of the Indian state of West Bengal, on the eastern bank of the Hooghly River west of the border with Bangladesh. It is the primary business, comme ...

Provisions

Pradhan Mantri Suraksha Bima Yojana is available to people (Indian Resident or NRI) between 18 and 70 years of age with bank accounts. It has an annual premium of . Goods and Services Tax (GST) is exempted on Pradhan Mantri Suraksha Bima Yojana. The amount is automatically debited from the account. This insurance scheme can have one year cover from 1 June to 31 May and is offered through banks. It is administered through public sector general insurance companies. In case of death or full disability, the payment to the nominee will be ₹2 Lakh and in case of partial permanent disability it would be ₹1 Lakh. Full disability has been defined as loss of use in both eyes, hands, or feet. Partial Permanent disability has been defined as loss of use in one eye, hand, or foot. Further, death due to suicide, alcohol, drug abuse, etc., are not covered. A person joined under this scheme is eligible for a claim only after 45 days of joining the scheme. This scheme is linked to the bank accounts opened under the

Pradhan Mantri Jan Dhan Yojana Pradhan Mantri Jan Dhan Yojana () is a financial inclusion program of the Government of India open to Indian citizens (minors of age 10 and older can also open an account with a guardian to manage it), that aims to expand affordable access to f ...

scheme. Most of these accounts had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes. Now, all bank account holders can avail this facility through their net-banking service facility at any time of the year.

Criticism

A rising loss ratio has forced general insurers to urge the government to hike the premium for the scheme.

Results

As of 31 March 2019, 15.47 crore people have already enrolled for this scheme. 32,176 claims have been disbursed amounting to . In April 2017,

Haryana Government The Government of Haryana, also known as the State Government of Haryana, or locally as the State Government, is the supreme governing authority of the Indian state of Haryana and its 22 districts. It consists of an executive, ceremonially led ...

announced that all Haryana residents in the age group of 18–70 years will be covered by PMSBY; the state government would reimburse the premium to the beneficiary.

References

{{Government Schemes in India Modi administration initiatives Government schemes in India Social security in India Insurance in India 2015 introductions

Provisions

Criticism

Results

See also

References