)
The Rs 30,000 life insurance cover under the Pradhan Mantri Jan Dhan Yojana has some modalities to be worked out on the premium payment and claims payment. Life Insurance Corporation of India (LIC), which will offer the cover to all individuals who open bank accounts under the financial inclusion scheme by January 26, 2015, had a meeting with finance ministry officials to get clarity on the collection of premiums and administration of the scheme.
A senior LIC official said they had discussions with ministry officials and the details of the premium and claims payments would be clarified within the next two or three days.
Till now, about 25 million bank accounts have been opened under the Jan Dhan scheme and many individuals would be eligible for the Rs 30,000 life cover by LIC.
Sources also said there have been talks of having a minimal payment for this scheme by the individuals. The process of claim settlement could be done through the Aam Aadmi Bima Yojana (AABY), a social security scheme administered by LIC. AABY members are between 18 years and 59 years. Here, the member should be the head of the family or one earning member of the below poverty line family or marginally above the poverty line under identified vocational group/rural landless household.
The premium to be charged initially under the scheme is Rs 200 a year per member for a cover of Rs 30,000, out of which 50 per cent is subsidised from the Social Security Fund . In case of Rural Landless Household, the remaining 50 per cent premium is borne by the state government or Union territory; in case of other occupational group, the remaining 50 per cent premium is borne by the nodal agency and / or member and / or state government / Union territory.
The life cover was not originally part of the Jan Dhan scheme announced in Prime Minister Narendra Modi's Independence Day address on August 15; he announced it on August 28 when the scheme was officially launched. An accident insurance cover of Rs 1 lakh is also given to all individuals who open a bank account under the Jan Dhan scheme.
