The Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched in May 2015, has become a transformative instrument in India’s journey toward universal social security, especially for its economically vulnerable populations. Now celebrating a decade of operation, PMSBY exemplifies how affordable and inclusive insurance products can integrate large segments of society—particularly rural and unorganised sectors—into the formal financial ecosystem.

Overview of PMSBY

Designed to provide accident insurance protection at a highly affordable cost, PMSBY offers:

• Rs. 2 lakh (US$ 2,336.10) coverage for death or full disability

• Rs. 1 lakh (US$ 1,168.05) for partial disability

• All at a nominal annual premium of Rs. 20 (US$ 0.23)

This insurance has proven critical in providing financial security to those otherwise left unprotected against unforeseen accidents, enabling dignity and resilience in times of distress.

Growth and Impact Over a Decade

Since its inception, PMSBY has witnessed phenomenal uptake, with over 44 crore enrolments recorded nationwide. More than 1.35 lakh claims have been processed, and Rs. 2,700 crore (US$ 315.38 million) disbursed in FY25 alone, showcasing the scheme’s growing footprint.

The National Insurance Company (NIC) stands out as a key insurer under PMSBY, covering 17.04 crore individuals (nearly 38% of total enrolments) and settling around 55,000 claims worth Rs. 1,000 crore (US$ 116.80 million). Such figures illustrate the scale and effectiveness of the scheme’s coverage.

Real-Life Beneficiary Stories

PMSBY’s success is best reflected in the lives of its beneficiaries. Individuals like Ms. Meena Singh from Bihar, Ms. Rani Kumari from Karnataka, and Ms. Riya Das from Assam have received timely financial support from PMSBY claims, enabling them to overcome economic hardships caused by accidents. These stories underline the scheme’s role in social protection for vulnerable communities.

Digital Integration and Efficiency

A key enabler for PMSBY’s reach has been its seamless enrolment process through Jan Dhan accounts, utilising auto-debit features to simplify premium payments and ensure continuous coverage. The introduction of the Jan Suraksha Portal and digital tools has markedly improved transparency, claim processing speed, and grievance redressal, addressing early challenges such as low awareness and administrative hurdles.

Future Prospects and Expansion Plans

Looking ahead, the government envisions further strengthening PMSBY as a pillar of India’s social security framework in line with the vision of "Viksit Bharat @2047". Proposed enhancements include:

• Increasing the coverage limit to Rs. 5 lakh (US$ 5,840.26) to better meet beneficiaries’ needs

• Conducting block-level awareness drives to reach unserved and underserved populations

• Strengthening the grievance redressal mechanism to ensure quicker and fair resolution of claims

These initiatives aim to enhance inclusivity and broaden the scheme’s impact, especially in remote and rural areas.

Significance in India’s Social Security Landscape

PMSBY has become a model for affordable insurance inclusion in India, addressing the gap in protection for the lower-income segments and informal sector workers. Its low-cost structure, ease of access, and nationwide reach have contributed to embedding a culture of financial security among millions.

The scheme’s success has also encouraged further innovations in government-led social protection programmes, promoting resilience and dignity among India’s economically vulnerable citizens.

Conclusion

As PMSBY completes a decade, it stands as a testament to the power of inclusive policy design and digital financial integration in extending social security to India’s vast and diverse population. The scheme’s low premium, substantial coverage, and robust digital platform have transformed how insurance protects vulnerable groups from accident-related financial shocks.

With upcoming enhancements in coverage and outreach, PMSBY is poised to deepen its impact and continue playing a vital role in India’s mission to build a more secure and inclusive society by 2047.

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