What is Micro Insurance?

Micro insurance offers low-cost, low-coverage insurance for economically weaker sections (EWS) and below poverty line (BPL) families. IRDAI regulates these products with strict guidelines to ensure affordability and accessibility. Maximum sum insured: ₹50,000-2 Lakh for life, ₹30,000-1 Lakh for health.

Government Micro Insurance SchemesSchemePremiumCoverEligibilityPMJJBY (Life)₹436/year₹2 Lakh death cover18-50 years, bank accountPMSBY (Accident)₹20/year₹2 Lakh accidental death₹1 Lakh partial disability18-70 years, bank accountAyushman Bharat (PMJAY)Free₹5 Lakh health cover/familyBPL families, SECC databaseAam Aadmi Bima Yojana₹200/year₹75,000 death + scholarshipRural landless families💡 Did You Know: PMSBY gives ₹2 Lakh accidental death cover for just ₹20/year — that's less than the price of a cup of chai per month. Over 34 crore Indians are enrolled. Auto-debited from bank account annually on June 1st.PMJJBY vs PMSBY: Which Do You Need?FeaturePMJJBY (Life)PMSBY (Accident)TypeTerm life insurancePersonal accidentCovers death fromAny causeAccident onlyPremium₹436/year₹20/yearCover amount₹2 Lakh₹2 Lakh (death), ₹1 Lakh (partial)Disability cover✗✓Age limit18-5018-70Best forEveryone with dependentsEveryone (super cheap)How to EnrollVisit your bank branch (savings account required — Jan Dhan account works).Fill the one-page enrollment form or give verbal consent.Provide Aadhaar number and nominee details.Premium auto-debited from your bank account annually.No medical check-up required for PMJJBY or PMSBY.Ayushman Bharat: Free ₹5 Lakh Health Cover

PMJAY (Ayushman Bharat) provides ₹5 Lakh cashless health cover per family per year at empanelled hospitals. It covers 1,350+ medical packages including surgery, day care, and medical management. Check eligibility at mera.pmjay.gov.in using your ration card number.

Frequently Asked QuestionsCan I have both PMJJBY and PMSBY?

Yes! Having both gives you ₹2 Lakh life cover + ₹2 Lakh accident cover for just ₹456/year total. If death is due to accident, nominee gets ₹4 Lakh (claim from both policies).

What happens if I change my bank?

You need to re-enroll at your new bank. Only one bank can debit the premium. Inform your old bank to cancel and enroll at the new one before June 1st (annual renewal date).

Micro Insurance in India: ₹2 Lakh Cover for Just ₹20/Year (PMJJBY & PMSBY)

By Admin • Feb 23, 2026 • 📖 4 min read

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Admin

Insurance & financial content specialist at PolicyBaazar. Helping Indians make informed insurance decisions with expert analysis and unbiased reviews.

📅 Published: Feb 23, 2026 📖 830 words ⏱️ 4 min read

Micro Insurance in India: ₹2 Lakh Cover for Just ₹20/Year (PMJJBY & PMSBY)

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