For twenty rupees per year — less than the cost of a single cup of chai — you get ₹2 lakh cover for accidental death and ₹1 lakh for permanent partial disability. This is the single most affordable insurance product in India, and honestly, there is no rational reason for any adult not to have it.
PMSBY covers accidental death and permanent disability (total or partial). It does not cover natural death, illness, suicide, or temporary disability. If you want coverage for death from any cause (including natural), you need PMJJBY as well — or better yet, a proper term insurance plan.
Accidental death: ₹2 lakh paid to nominee. Permanent total disability (loss of both eyes, or loss of use of both hands/feet, or loss of one eye plus one hand/foot): ₹2 lakh. Permanent partial disability (loss of one eye, or loss of use of one hand/foot): ₹1 lakh. The disability must be caused by an accident, not by illness or natural causes.
Any person aged 18 to 70 with a savings bank account can enrol. Most banks allow enrolment through net banking, mobile banking, or by submitting a simple form at the branch. The ₹20 premium is auto-debited once a year. If the debit fails, the cover lapses — so ensure your account has sufficient balance around the renewal date (typically June 1).
PMSBY (₹20/year) plus PMJJBY (₹436/year) together cost ₹456 per year — about ₹38 per month. Together they provide ₹2 lakh accident cover plus ₹2 lakh life cover (any cause of death). For families earning below ₹25,000/month who cannot afford regular insurance, this ₹456/year combo is an absolute must-have. It is the government's way of providing a basic financial safety net to every Indian household.