DETAILS OF THE
SCHEME:
The
scheme will be a one year cover, renewable from year to year, Accident Insurance
Scheme offering accidental death and disability cover for death or disability
on account of an accident. The scheme would be offered / administered through
Public Sector General Insurance Companies (PSGICs) and other General Insurance
companies willing to offer the product on similar terms with necessary
approvals and tie up with Banks for this purpose. Participating banks will be
free to engage any such insurance company for implementing the scheme for their
subscribers.
Scope
of coverage: All savings bank account holders in the age 18 to 70
years in participating banks will be entitled to join. In case of
multiple saving bank accounts held by an individual in one or different banks,
the person would be eligible to join the scheme through one savings bank
account only. Aadharwould be the primary KYC for the bank account.
Enrollment
Modality / Period: The cover shall be for the one year period
stretching from 1st June to 31st May
for which option to join / pay by auto-debit from the designated savings bank
account on the prescribed forms will be required to be given by 31st May
of every year, extendable up to 31st
August 2015 in the initial year. Initially on launch, the period for joining
may be extended by Govt. of India for another three months, i.e. up to 30th of
November, 2015. Joining subsequently on payment of full annual premium may be
possible on specified terms. However, applicants may give an indefinite /
longer option for enrolment / auto-debit, subject to continuation of the scheme
with terms as may be revised on the basis of past experience. Individuals who
exit the scheme at any point may re-join the scheme in future years through the
above modality. New entrants into the eligible category from year to year or
currently eligible individuals who did not join earlier shall be able to join
in future years while the scheme is continuing.
Benefits: As per the
following table:
|
|
Table of Benefits |
Sum |
|
a. |
Death |
Rs. 2 Lakh |
|
b. |
Total and |
Rs. |
|
c. |
Total and |
Rs. 1 Lakh |
Premium: Rs.12/-
per annum per member. The premium will be deducted from the account
holder’s savings bank account through ‘auto debit’ facility in one installment
on or before 1st June of each annual coverage
period under the scheme. However, in cases where auto debit takes place after 1st
June, the cover shall commence from the first day of the month following the
auto debit.
The
premium would be reviewed based on annual claims experience. However, barring
unforeseen adverse outcomes of extreme nature, efforts would be made to ensure
that there is no upward revision of premium in the first three years.
Eligibility
Conditions:
The
savings bank account holders of the participating banks aged between 18 years
(completed) and 70 years (age nearer birthday) who give their consent to join /
enable auto-debit, as per the above modality, will be enrolled into the scheme.
Master
Policy Holder: Participating Bank will be the Master
policy holder on behalf of the participating subscribers. A simple and
subscriber friendly administration & claim settlement process shall be
finalized by the respective general insurance company in consultation with the
participating Banks.
Termination
of cover: The accident cover for the member shall terminate on
any of the following events and no benefit will be payable there under:
1)
On
attaining age 70 years (age nearest birth day).
2)
Closure of account with the Bank or
insufficiency of balance to keep the insurance in force.
3)
In case a member is covered through more than
one account and premium is received by the Insurance Company inadvertently,
insurance cover will be restricted to one only and the premium shall be liable
to be forfeited.
4)
If the insurance cover is ceased due to any
technical reasons such as insufficient balance on due date or due to any
administrative issues, the same can be reinstated on receipt of full annual
premium, subject to conditions that may be laid down. During this period, the
risk cover will be suspended and reinstatement of risk cover will be at the
sole discretion of Insurance Company.
5)
Participating banks will deduct the premium
amount in the same month when the auto debit option is given, preferably in May
of every year, and remit the amount due to the Insurance Company in that month
itself.
Administration:
The
scheme, subject to the above, will be administered as per the standard
procedure stipulated by the Insurance Company. The data flow process and data
preform a will be provided separately.
It
will be the responsibility of the participating bank to recover the appropriate
annual premium from the account holders within the prescribed period through
‘auto-debit’ process.
Enrollment
form / Auto-debit authorization in the prescribed preform a shall be obtained
and retained by the participating bank. In case of claim, the Insurance Company
may seek submission of the same. Insurance Company reserves the right to call
for these documents at any point of time.
The acknowledgement slip may
be made into an acknowledgement slip-cum-certificate of insurance.
The experience of the scheme will be monitored on yearly
basis for re-calibration etc., as may be necessary.
Appropriation of
Premium:
1)
Insurance
Premium to Insurance Company: Rs.10/- per annum per member
2)
Reimbursement of Expenses to
BC/Micro/Corporate/Agent : Rs.1/- per annum per member
3)
Reimbursement of Administrative expenses to
participating Bank: Rs.1/- per annum per member
The proposed date of commencement of the scheme will be 1st June
2015.The next Annual renewal date shall be each successive 1st of
June in subsequent years.
The scheme is liable to be discontinued prior to
commencement of a new future renewal date if circumstances so require.
