Insurance

Pradhan Mantri Jeevan Jyoti Bima Yojana [PMJJBY]

  Eligibility: Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
  Premium: Rs 330 per annum. It will be auto-debited in one instalment.
  Payment Mode: The payment of premium will be directly auto-debited by the bank from the subscribers account.
  Risk Coverage: Rs. 2 Lakh in case of death for any reason.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Government of India has announced a scheme namely "Pradhan Mantri Suraksha Bima Yojana" in order to facilitate Accidental insurance cover (Accidental Death & Disability) to all the masses of India at affordable cost to economically weaker society.

The insurance cover is available under a One Year Renewable Insurance Plan of United India Insurance Company (UIIC). This scheme provides the Accidental insurance cover (Accidental Death & Disability) for all Savings deposit account holders

The scheme provides insurance cover to all savings account holders in the age group of 18 - 70 years. The scheme will officially come into effect from June 1, 2015.
  Eligibility :The savings bank account holders of Suvarnayug Bank between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join / enable auto-debit will be enrolled into the scheme.
  Target Group: All existing and new SB account holders.
  Premium: Rs. 12.00 per annum. It will be auto-debited in one instalment for subsequent renewals.
  Risk Coverage: Rs. 2 Lakhs in case of death / total and irrecoverable loss of both eyes / loss of 1 eye and 1 hand / total and irrecoverable loss of 1 eye and 1 foot. Rs. 1 Lakhs in case of total and irrecoverable loss of 1 eye or 1 hand or 1 foot.
  Payment Mode: The payment of premium will be directly auto-debited by the bank from the subscribers account.
  Terms of Risk Coverage: A person has to opt for the scheme every year or else he/she can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.

• Insurance cover commences immediately on debit of premium to the account. The customer does not have to wait for the policy document.
• Simple payment mechanism: the premium can be debited to customers account and standing instructions can be given for renewal. Thus there is no possibility of lapse of cover.
• Nomination facility is available.
• Simple claim settlement process.
• The insurance cover is provided under the Group Insurance Scheme of UIIC.
• Note:: Proposal Form is provided in the website with a facility to down load them by the customers. The filled in and signed forms can be sent by the customers by post or courier to the home branch or else the customer has to go personally or through any third party to the Home Branch and deliver the filled in application form to them to enroll under the scheme.

Janata Accident Insurance :

Bank takes out Janata Accident Insurance, through M/s United India Insurance Company on every Loan Account. If loan account holder is a Ltd company Or Partnership firm, then in that case the insurance will be on the name of its each partner or director. The amount of Premium will be recovered from company or firm account. The premium amount will be calculated on pro rata basis from April To March every year.

  Under this Insurance scheme if any laon account holder expires in accident, then his legal haires will get Rs. 1,00,000/- from which the balance loan amount will be recovered first, and then remaining balance amount will be paid to the legal heiress of lonee.

Deposit Insurance System in India (DICGCI)

1.  Are my deposits in banks safe?
 Yes, of course. They are quite safe. Thanks to strong regulation and supervision by Reserve Bank of India and system of internal control of banks, they are well capitalized, well managed and effectively regulated.

2.  Oh, you must be referring to the public sector banks!
  No. It applies to all the banks operating in India including private sector, co-operative and even branches of foreign banks in India.

3. But occasionally there is news about some bank or the other being closed down by RBI. What about my deposits there? I am a small depositor.
  Take it easy. Bank resolution is an activity that is carried out by the concerned authorities in the best interest of the depositors. Your deposits up to a particular limit (presently .5 lakh per depositor) are insured and paid back to you in the event of failure of your bank. Your deposits to the above extent are insured, possibly even without your knowledge.

4.  But who insures my deposits?
  Your deposits are insured by Deposit Insurance and Credit Guarantee Corporation (DICGC), the second oldest deposit insurer of the world, quietly taking care of the interest of depositors, particularly small depositors. It is a wholly owned subsidiary of the RBI, created by an Act of Parliament and will be celebrating its golden jubilee year in 2011-12.

5. That is ok, but how much premium the Corporation would charge?
  You do not have to pay any premium. However, the DICGC charges a nominal premium from the banks. Probably you never come to know because, unlike other bank fees, this premium is not charged to you.

6. If our banking system is robust, why do we need deposit insurance?
  Despite a robust banking system in India, there are different layers of safety net for protecting depositors' interest and constantly reinforcing their trust and confidence in the banking system. While most of the countries realised the importance of this safety net in recent years, India had established the deposit insurance system way back in 1961.

Please tell me briefly about your insurance scheme.:

  It insures all types of deposits (e.g., Savings, Fixed, Recurring, etc.) with an insured bank but does not include deposits received from a foreign Government, the Central Government, a State Government, or another bank or any deposit received outside India.
  The balance of principal together with interest accrued to each depositor as on the date of liquidation / cancellation of license of the bank is fully settled by the Corporation up to a maximum ceiling amount of Rs.5 lakh.
  For the purpose of the above ceiling, all the deposit accounts of a depositor in the same right and the same capacity maintained across all branches of the failed bank are clubbed. However, deposits maintained with different banks and in different rights/capacities are not clubbed. For example, an account maintained by Mr.'A' in his personal capacity and another as the partner of a firm, in the same bank are treated as two different accounts for the purpose of deposit insurance and each account is eligible for a separate insurance cover to the extent of 5 lakh. Similarly, if Mr. 'A' and Mr. 'B' jointly hold two accounts with Mr. 'A' as first holder in one account and Mr.'B' as the first holder in the second account, these two accounts (i.e., A+B and B+A) will be treated as separate accounts for the purpose of deposit insurance.

7. Do I have to make a claim within a specified period like in any other insurance claim?
  No, in the unlikely event of a bank failure, the official liquidator would make a claim on your behalf and DICGC is bound to pay the valid insurance claims as soon as possible and in any case within 2 months from receipt of claim from the liquidator.

8. Anything else that I should know?
 As a financially literate citizen of India, you must know how safe you’re hard earned money is so that you manage your risks. You have a right to know that the bank you are putting your money in is appearing in the list of banks insured by DICGC. You must also comply with all the rules stipulated for account opening and furnish complete information to the deposit taking bank so that claim settlement by DICGC, if at all required, is done without delay.

9. How do I know more about deposit insurance?
  You can find more details at DICGC website www.dicgc.org.in or email your specific queries at dicgc@rbi.org.in or address your queries to:

DICGC
DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION (Wholly owned subsidiary of the Reserve Bank of India) Deposit Insurance and Credit Guarantee Corporation, RBI (2nd Floor), Opp. to Mumbai Central Rly. Station, Mumbai – 400008 Tel. No. (022) 2308-4121