PMSBY is an accidental insurance scheme offering ₹2 lakh for accidental death/permanent disability at just ₹20/year premium. Launched June 1, 2015. 51.06 crore cumulative enrollments (Apr 2025). ₹3,121 crore paid in claims for 1.57 lakh cases. World's largest accident insurance scheme.
Target Beneficiaries: 51.06 crore cumulative enrollments (Apr 2025); ₹3,121.02 crore paid for 1.57 lakh claims; world's largest accident insurance scheme
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Funding Ratio (Centre:State): Premium-based; self-funded by subscribers. Government handles administrative costs.
GS Paper: GS3
Syllabus Tags
Launched in June 2015 along with PMJJBY to increase insurance penetration from the then-low level of <1%.
Metric
51.06 Crore
Source: Ministry of Finance
Metric
₹3,120 Crore
Source: PIB
PMSBY provides a 'near-universal' accidental insurance cover at an extremely low cost (₹20/year). Its brilliance lies in the auto-debit feature, which minimizes churn and administrative costs. However, the claim settlement process is often cited as cumbersome for rural beneficiaries who may lack immediate access to FIRs or death certificates. The scheme's sustainability depends on the balance between low premiums and the increasing claim ratios faced by insurance companies.
How does PMSBY contribute to the financial resilience of informal sector workers against unforeseen risks?
PMSBY is a critical component of the Jan Suraksha Trinity (PMJDY, PMJJBY, PMSBY). It mitigates the 'vulnerability of the poor' to sudden economic shocks caused by accidents. Keywords: Micro-insurance, Jan Suraksha, Financial safety net, Auto-debit mechanism.