Indian Economy News

Pradhan Mantri Suraksha Bima Yojana - A decade of insurance inclusion

Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched in May 2015, has emerged as a cornerstone in India’s push towards universal social security. Aimed at economically vulnerable citizens, especially those in rural and unorganised sectors, PMSBY offers accident insurance of Rs. 2 lakh (US$ 2,336.10) for death or full disability and Rs. 1 lakh (US$ 1168.05) for partial disability at a nominal annual premium of Rs. 20 (US$ 0.23). Over 44 crore enrolments and more than 1.35 lakh claims have been settled since inception, with Rs. 2,700 crore (US$ 315.38 million) disbursed in FY25 alone. Seamless enrolment via Jan Dhan accounts through auto-debit helped integrate insurance into the formal financial ecosystem.
The National Insurance Company (NIC) has covered 17.04 crore individuals, nearly 38% of total enrolments, and settled 55,000 claims amounting to Rs. 1,000 crore (US$ 116.80 million). Beneficiaries like Ms. Meena Singh in Bihar, Ms. Rani Kumari in Karnataka, and Ms. Riya Das in Assam exemplify how PMSBY has delivered critical financial support in distress. While early challenges included low awareness and claim processing hurdles, the Jan Suraksha Portal and digital integration have significantly improved transparency and efficiency. As India aims for "Viksit Bharat @2047", proposals such as increasing coverage to Rs. 5 lakh (US$ 5,840.26), block-level awareness drives, and strengthened grievance redressal will help expand its reach. PMSBY remains a model of how affordable, inclusive policies can provide dignity and resilience to the underserved.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.