LIC to offer Jeevan Jyoti Bima to Dena Bank savings account holders

PMJBY will be a group life insurance cover and would be renewed annually on June 1 every year

Life Insurance Corporation of India (LIC) and Dena Bank have signed a Memorandum of Understanding to implement the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) for savings bank account holders of the bank.

PMJBY, a life insurance scheme, is one of the three schemes announced by the Finance Minister in the union budget for the year 2015-16.

This will be a group life insurance cover and would be renewed annually on June 1 every year. The savings account holder will have to allow and give auto debit consent to bank every year.

S K Roy, chairman of LIC said that they would look to tie-up with other banks as well for implementing this scheme. They already have tied-up with Corporation Bank. "We are in discussions with other banks, both public sector and private sector for offering this scheme," he said.

In the budget speech, finance minister Arun Jaitley said that the premium for this scheme would only be direct debit from the bank accounts and only account-holders would be eligible for the product.

The scheme offers life insurance cover of Rs 2 lakh to Aadhaar-linked savings bank account holders in the age group 18-50 years. The insurance cover will be available up to age 55 years. The scheme provides the cover at a premium of Rs 330. The insurance cover will be available from June 1, 2015 to May 31, 2016 and renewable every year.

Ashwani Kumar, CMD, Dena Bank said that this scheme would help in financial inclusion and insurance penetration. He said that designated branches will deal with claim settlements under the scheme. Dena Bank has 12 million savings bank account holders and they would be eligible to enroll under this policy.