Opinion | Pradhan Mantri Suraksha Bima Yojana (PMSBY) – A Decade of Insurance Inclusion

Pradhan Mantri Suraksha Bima Yojana (PMSBY) marks a significant milestone in India’s journey toward universal social security. Launched in May 2015 and designed as an affordable and accessible personal accident insurance scheme, PMSBY targeted economically vulnerable citizens, particularly those in rural and unorganized sectors. With a nominal annual premium of ₹20, the scheme offers ₹2 lakh insurance coverage for accidental death or full disability, and ₹1 lakh for partial disability. Over the past decade, PMSBY has evolved from a government initiative to a symbol of inclusive insurance outreach.

PMSBY was conceived as part of the government’s broader strategy to strengthen the social security framework in India. It followed the successful rollout of the Pradhan Mantri Jan Dhan Yojana (PMJDY), which brought millions of underbanked Indians into the formal banking system. The linkage between Jan Dhan accounts and PMSBY facilitated seamless enrolment through auto-debit, making it especially easy for low-income individuals to subscribe with ease. Together, these schemes have become pillars of India’s insurance inclusion strategy, ensuring that the economically weaker sections are not left vulnerable in times of need.

In the last ten years, the scheme has crossed 44 crore enrolments and has settled over 1.35 lakh claims, disbursing more than ₹2,700 crore in FY 2024–25 alone. These figures highlight the scale and impact of the initiative in embedding insurance awareness across the nation.

The National Insurance Company (NIC) has played a key role in implementing this scheme. Covering over 17.04 crore individuals across states which is nearly 38% of the total enrollment, NIC has worked with commitment and compassion to ensure the scheme reaches its intended beneficiaries. Over the decade, NIC has honoured nearly 55,000 claims, i.e. 40% of the total claims, amounting to ₹1,000 crore, reinforcing its dedication to serving the underprivileged with empathy and efficiency.

Through PMSBY, National Insurance has had the opportunity to directly engage with the lives of those often left out of mainstream insurance services. These interactions have not only deepened the company’s resolve to support the mission of insurance inclusion but have also provided meaningful insight into the hardships and resilience of India’s poor.

The true measure of PMSBY’s success lies in the stories of its beneficiaries, the stories of resilience in face of loss. Mrs. Meena Singh, a homemaker from Jehanabad, Bihar, lost her husband in a tragic road accident. Though devastated, the family received ₹2 lakh under PMSBY, which helped her continue her children’s education. Her late husband had enrolled in PMSBY through his bank, with just ₹20 being auto-debited annually. Similarly, in Karnataka, Rani Kumari, a teenager injured in a bike accident, received timely medical treatment funded by the claim settlement of her deceased brother’s policy. The ₹2 lakh payout provided critical financial relief for her family. Further East, in Guwahati, Ms. Riya Das, a young widow, received ₹2 lakh within seven days of submitting documents after her husband’s accidental drowning. This prompt support offered emotional and financial stability at a crucial time.

These stories, though only a few among thousands, reflect how PMSBY has brought dignity and hope to families during times of intense grief and financial distress. For many, it has been the only form of insurance they could afford—turning ₹20 into life-saving support.

However, the journey of PMSBY was not without its share of challenges. Initially, the scheme faced issues related to geographical remoteness, low awareness in rural areas, administrative hurdles in claim processing and difficulty in collecting valid documents to name a few. However, persistent efforts, digital outreach, and supportive government frameworks have addressed many of these concerns. The launch of the Jan Suraksha Portal has improved transparency and ease of enrolment and claims, especially for rural populations. Integration with banking and digital platforms has further streamlined operations and minimized delays.

As India looks ahead to Viksit Bharat @2047, aiming for inclusive development, schemes like PMSBY are foundational to achieving “Insurance for All.” To deepen its impact further, future measures could include Enhancing the coverage from ₹2 lakh to ₹5 lakh to reflect expanded benefits while remaining affordable, launching awareness campaigns at the block and panchayat levels, Strengthening grievance redressal mechanisms and digital claim tracking. These steps will ensure the scheme remains sustainable and responsive to evolving needs, especially amid rising accident-related risks and medical costs.

Over the past decade, Pradhan Mantri Suraksha Bima Yojana has not only promoted insurance literacy but also saved families from financial ruin in the aftermath of tragedies. The collaborative effort of the government, banks, insurers, and the resilience of the beneficiaries themselves has made PMSBY a model for social insurance schemes worldwide.

As we move toward a more secure and equitable India, the journey of PMSBY stands as a testament to the power of simple, well-designed policies in transforming lives. From ₹20 premiums to ₹2 lakh payouts, the scheme continues to demonstrate that even the smallest contributions can build a future of security, trust, and dignity for all.

(Names changed to protect the identity of the beneficiaries)

Mrs Rajeshwari Muni is CMD, National Insurance Company Limited