Definition
PMSBY
Pradhan Mantri Suraksha Bima Yojana is a government accident insurance scheme offering accidental death and disability cover for a nominal annual premium.
PMSBY provides a fixed sum for accidental death and total permanent disability, and a smaller sum for partial permanent disability, for an extremely low annual premium auto-debited from the subscriber's bank account. It is open to account holders within a specified age range.
Unlike PMJJBY, which covers death from any cause, PMSBY is strictly an accident cover. Together these schemes form part of the government's financial-inclusion push, providing cheap baseline protection to millions who would otherwise be uninsured.
Related terms
- PMJJBYPradhan Mantri Jeevan Jyoti Bima Yojana is a government-backed term life insurance scheme offering low-cost cover to bank account holders.
- Personal Accident CoverPersonal accident (PA) cover pays fixed benefits for death or disablement caused by an accident, on a benefit (non-indemnity) basis.
- Atal Pension YojanaAtal Pension Yojana is a government-backed pension scheme for workers, mainly in the unorganised sector, offering a guaranteed minimum pension after age sixty.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.