The Indian Government has launched several social security schemes to provide financial protection and insurance coverage to citizens, especially people belonging to low-income and economically weaker sections. Among the most important schemes are the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). These schemes were introduced in 2015 with the objective of promoting financial inclusion and expanding insurance coverage across the country.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme that provides financial assistance in cases of accidental death or disability. The scheme was announced in the Union Budget of 2015 by Finance Minister Arun Jaitley and was formally launched by Prime Minister Narendra Modi on 8 May 2015 in Kolkata.
The scheme is available to Indian residents as well as Non-Resident Indians (NRIs) between the age group of 18 and 70 years who possess a savings bank account. PMSBY offers insurance coverage at a highly affordable premium of only ₹20 per year. The premium amount is automatically debited from the subscriber’s bank account annually. The insurance coverage remains valid for one year, from 1 June to 31 May, and can be renewed every year.
The main objective of PMSBY is to provide accident insurance protection to poor and underprivileged people at a very low cost. The scheme is administered through public sector general insurance companies and participating banks. Enrollment can be done by visiting the bank branch, through Banking Correspondents (BCs), or through internet banking facilities.
Under the scheme, the insured person receives financial compensation in the event of accidental death or disability. A compensation amount of ₹2 lakh is provided in case of accidental death or full permanent disability. Full disability includes loss of use of both eyes, both hands, or both feet. In case of partial permanent disability, such as loss of use of one eye, one hand, or one foot, the insured receives ₹1 lakh.
However, certain conditions are not covered under the scheme. Death caused by suicide, alcohol consumption, or drug abuse is excluded from insurance coverage. Additionally, a person becomes eligible for claims only after completing 45 days from the date of enrollment.
The PMSBY scheme is closely linked with bank accounts opened under the Pradhan Mantri Jan Dhan Yojana. The government introduced this linkage to encourage active usage of Jan Dhan accounts, many of which initially had zero balance. If sufficient balance is not maintained in the account, the policy may lapse. Similarly, the insurance cover terminates if the linked bank account is closed. A person can enroll through only one bank account even if they possess multiple accounts.
Progress and Performance of PMSBY
Since its launch, PMSBY has witnessed significant growth in enrollment. The number of policyholders increased steadily from around 9.95 crore in 2016–17 to more than 30 crore by 2022. The scheme has also processed a large number of claims, with claim settlement ratios generally remaining above 75%.
As of May 2025, cumulative enrollments under PMSBY crossed 50 crore. Claims worth thousands of crores of rupees have been settled for more than 1.57 lakh families. According to government data, the claim settlement ratio under PMSBY reached more than 97% by June 2023.
Criticism of PMSBY
Despite its success, the scheme has faced criticism regarding delays in claim settlement. Reports indicated that many claims were not settled within the prescribed time limit. Experts also raised concerns about the possibility of premium hikes due to increasing loss ratios. Nevertheless, the scheme continues to remain extremely affordable at just ₹20 annually.
Insurance experts have praised PMSBY for its simplicity and ease of access. The scheme has played an important role in increasing insurance penetration in rural and economically weaker sections of society. Various studies have described PMSBY as one of India’s most successful financial inclusion initiatives.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme launched to provide life insurance coverage to Indian citizens at a low premium. The scheme was announced in the 2015 Union Budget by Finance Minister Arun Jaitley and was formally launched by Prime Minister Narendra Modi on 9 May 2015 in Kolkata.
The scheme was introduced because only a small percentage of India’s population had access to life insurance coverage. PMJJBY aims to increase insurance penetration and provide financial security to families in the event of the death of the earning member.
PMJJBY is available to individuals between 18 and 50 years of age who possess a savings bank account. The annual premium under the scheme is ₹436, which is automatically deducted from the subscriber’s bank account every year on or before 31 May. The insurance coverage remains valid from 1 June to 31 May each year. Subscribers who opt for auto-debit can continue renewing the policy up to the age of 55 years.
One of the major advantages of PMJJBY is that no medical examination or health certificate is required for joining the scheme. In case of death of the insured person due to any reason, the nominee receives an insurance amount of ₹2 lakh. Aadhaar linkage with the bank account is mandatory to avail benefits under the scheme.
Similar to PMSBY, PMJJBY is also linked to accounts opened under the Pradhan Mantri Jan Dhan Yojana. The scheme can be enrolled through bank branches or internet banking facilities.
Growth and Achievements of PMJJBY
PMJJBY has achieved remarkable expansion since its launch. The number of policyholders increased from nearly 3 crore in 2015–16 to over 16 crore by 2022–23. Lakhs of claims have been settled under the scheme, and thousands of crores of rupees have been disbursed to beneficiaries’ families.
As of April 2025, more than 23 crore enrollments had taken place under PMJJBY. Claims worth over ₹18,000 crore had been settled for more than 9 lakh families. The claim settlement ratio under the scheme exceeded 99% according to official government data.
The government has organized awareness camps at district and village levels with the support of banks, Business Correspondents, and local administration to increase awareness and enrollment.
Challenges and Criticism of PMJJBY
Although PMJJBY has benefited millions of people, the scheme faced criticism during the COVID-19 pandemic when a large number of deaths occurred across the country. Reports suggested that many families were unable to claim insurance benefits because they were unaware of the scheme or could not complete the required formalities within the stipulated period.
Several challenges were identified, including lack of awareness among nominees, absence of policy documents, difficulties in arranging documents such as death certificates within a short period, and problems arising when no nominee was registered in the bank account. Critics also pointed out the lack of an effective monitoring and grievance redressal mechanism during the initial years.
However, government authorities later clarified that grievance redressal systems are available through the Jan Suraksha Portal managed by the Department of Financial Services. Official statistics also showed high claim settlement ratios, indicating substantial success of the scheme despite operational difficulties.
Importance of PMJJBY and PMSBY
Both PMJJBY and PMSBY have emerged as important pillars of India’s social security and financial inclusion framework. These schemes provide affordable insurance coverage to millions of people who previously had no access to insurance protection. By linking insurance with bank accounts, the government has encouraged financial inclusion while simultaneously offering social security benefits.
The schemes are particularly beneficial for economically weaker sections, rural populations, and informal workers who are highly vulnerable to financial shocks caused by death or accidents. Their low premium, simple enrollment process, and wide accessibility have made them among the largest insurance initiatives in the world.
Overall, PMJJBY and PMSBY represent significant steps toward building a financially secure and socially protected society in India.