The Financial Services Department of the Finance Ministry has prepared detailed guidelines for the scheme launched by the Prime Minister on August 28 named as Pradhan Mantri Jan Dhan Yojana (PMJDY), a scheme for financial inclusion.
The scheme intends to provide life insurance cover by LIC amounting to Rs 30,000 for accounts opened under the scheme till 26 January, 2015.
“The aim is to reach the needy only, not everyone,” a senior Finance Ministry official said.
The list of ineligible categories for insurance cover includes serving and retired employees and families of the Central/ State Governments, public sector undertakings, public sector banks and Central/ State Government-owned entities; persons filing income tax returns or TDS; and those covered under the Aam Aadmi Bima Yojana.
It has also been decided that the head or earning member of a family, aged between 18 to 59 years, will be covered. However, the benefit will be only for one person and can be availed of with the in-force RuPay card. Life cover will initially be up to March 31, 2020.
An in-force card can also be swiped to find out the balance within a certain period from the date of opening of account.
The guidelines also outline the process for claim settlement of accident insurance cover. This cover of Rs 1 lakh will be available on RuPay card and will be provided by HDFC Ergo. One would need to swipe the card at least once within 45 days of opening the account. If the card-holder meets with an accident, the bank should be informed and documents submitted within 30 days of incident.
The bank will then intimate HDFC Ergo within 30 days and submit the documents within 60 days of the loss. In turn, the insurance company will register and forward the claim number to the bank concerned.
Finally, the company will settle the claim within 10 days of receipt of documents. The National Payments Corporation of India will be the co-ordinating agency. Forms will be available at bank branches and on the website of the respective banks.
