The scheme will be one year cover; however it can be renewed from year to year. It is basically an insurance scheme that offers insurance cover for death due to any reason. The scheme would be extended through LIC and other Life Insurance Companies. Insurance companies offering the scheme need to take necessary approvals and to have tie ups with banks for this purpose. Participating banks can engage any such life insurance company for implementing the scheme for their subscribers.
A person having saving bank account in participating bank and fall in the age group of 18 to 50 years will be entitled to join. If an individual holds multiple saving bank accounts in one or different banks, the person would be eligible to join the bima yojana through one savings bank account only. Aadhar would be the primary KYC for the bank account.
Initially on launch for the cover period 1st June 2015 to 31st May 2016, subscribers will be required to give their auto-debit consent and enroll by 31st May 2015. Last date for enrollment for prospective cover will be 31st August 2015, which may be extended by government of India for another three months, i.e. up to 30th of November, 2015.
The cover will be for one year period stretching from 1st June to 31st May. Subscribers will be required to join/pay by auto-debit from the designated savings bank account by 31st May of every year, with the exception as above for the initial year.In case of delayed enrollment, payment of full annual premium for prospective cover along with a self-certificate of good health needs to be submitted by a subscriber.If an individual opt to exit the scheme will have the option to rejoin the scheme in the future years by submitting a declaration of good health in the prescribed Performa.
In future years, new entrants into the eligible category or currently eligible individuals who did not join earlier or discounted their subscription will be able to join while the scheme is continuing, subject to submission of self- certificate of good health.
In case of a member’s death due to any reason, Rs. 2 lakhs will be payable.
Premium amount is Rs. 330/- per annum per member. Through ‘auto debit’ facility the premium will be deducted from the account holder’s saving bank account in one installment, as per the option given, on or before 31st May of each annual coverage period under the scheme. Delayed enrollment for prospective cover after 31st May will be possible with submission of a self-certificate of good health and full payment of annual premium. Efforts will be made that there is no upward revision of premium in the first three years provided that no unforeseen adverse outcomes of extreme nature spring up.
Participating banks will be the Master policy holders. LIC/other insurance company in consultation with the participating banks will finalize a simple and subscriber friendly administration & claim settlement process.
In the face of any of the following events, the assurance on the life of the member shall stay terminated and no benefit will become payable:
LIC P&GS Units/other insurance company setups will administer the scheme. The data proforma and the data flow process will be informed separately.
To recover the appropriate annul premium in one installment will be the responsibility of the participating bank
For auto-debit every year, members can also give one-time mandate, till the scheme is in force.
Such kinds of schemes restore faith in good governance and help people soar their living standards. Government should launch more such schemes in order to boost the morale of the people.Especially people belonging to lower echelon of society is availed much through these schemes.