SOCIAL SECURITY INSURANCE SCHEMES
As per the announcement in the Union Budget FY 2015-16, the Ministry of Finance, Government of India has launched three social security schemes.
The schemes are as below –
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) for Life Insurance cover
- Pradhan Mantri Suraksha Bima Yojana (PMSBY) for Personal Accidental Cover
- Atal Pension Yojana (APY) for Old Age Pension
The said schemes have been launched as a social security to help citizens prepare for an eventuality / old age. These schemes have been introduced at very low premiums.
The government has taken an approach to offer these schemes only to bank account holders. The scheme premium is to be collected from the customer through a debit to the bank account. These schemes are available to all citizens who meet the eligibility criteria.
All banks are required to offer these schemes to its customers by entering into tie-ups with insurance providers (Life & General).
We at Indusind Bank have tied-up with-
- Life Insurance Corporation of India (LIC) for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Cholamandalam MS General Insurance for Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Pension Fund Regulatory and Development Authority (PFRDA) for Atal Pension Yojana (APY)
Pradhan Mantri Jeevan Jyoti Bima Yojana
Salient features of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY – for Life Insurance) are as below:
- Eligibility: All IndusInd Bank savings bank account holders between 18 years (completed) and 50 years (age nearer birthday) who have given the consent to join the scheme / enable auto-debit, as per the modality, will be enrolled into the scheme.
- Policy period: The cover shall be for one year period starting from June 1, 2015 to May 31, 2016 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 May 31, 2015, extendable up to August 31, 2015. Those joining subsequently may be able to do so with payment of full annual premium for prospective cover, with submission of a self-certificate of good health in a form acceptable to Us.
- Premium: Rs. 330/- + service tax (per annum).
- Payment Mode: The premium will be directly auto-debited by the bank from the subscribers' savings bank account. This is the only mode available currently.
- Risk Coverage: Sum Assured of Rs. 2,00,000 on death of the Insured member for any reason is payable to the Nominee. No claim is admissible for deaths during the first 45 days from the entry date, except for cases of death due to accident.
The personal details, as required, regarding admission into the Pradhan Mantri Jeevan Jyoti Bima Yojna scheme will be shared with Life Insurance of India.., under Master Policy No. 900100024 certifying coverage as per the Scheme, subject to correctness of information provided regarding eligibility and receipt of consideration amount.
Terms and Conditions
- DEFINITIONS :
- The Master Policyholder shall be IndusInd Bank Limited, a Body Corporate constituted under the Banking Companies (A&TU) Act, 1970. "BANK" shall mean IndusInd Bank Limited.
- "THE CORPORATION" shall mean the Life Insurance Corporation of India established under Section 3 of the Life Insurance Corporation Act, 1956.
- "THE SCHEME" shall mean 'PRADHAN MANTRI JEEVANJYOTI BIMA YOJANA' for the Savings Bank Account Holders of 'BANK'.
- "THE RULES" shall mean the Rules of the Scheme as set out below and as amended from time to time.
- "THE MEMBER" shall mean a Savings Bank Account Holder who has been admitted to benefits of the Scheme and on whose life an assurance has been or is to be effected in accordance with these Rules.
- "EFFECTIVE DATE" shall mean 1st of June, 2015, the date from which the Scheme commences.
- "ANNUAL RENEWAL DATE" shall mean, in relation to the Scheme 1st of June 2016 and 1st of June in each subsequent year.
- "ENTRY DATE" shall mean 01/06/2015 in respect of members enrolled upto 31/05/2015 and the date of remittance of premium in respect of other members.
- "TERMINAL DATE" shall mean in respect of each Member the Annual Renewal Date following the date on which completes the age of 55 or the member closes his account with the Bank or discontinuance of premium payment whichever is earlier.
- "THE ASSURANCE" shall mean the particular Assurance to be effected on the life of the Member.
- "THE BENEFICIARY" shall mean the person or persons who has/have been appointed by the Member as Nominee and whose name or names have been entered in the Bank Records.
- The "Bank" will act for and on behalf of the Members in all matters relating to the Scheme and every act done by agreement made with and notice given to the Corporation by the Bank shall be binding on the Members.
The savings bank account holder of the participating banks aged between 18 years (completed) and 50 years (age nearer birthday) and who have given the consent to join the scheme during the 'enrollment period' are eligible to join the scheme.
- ADMISSION OF AGE: Age as recorded by the Bank as per the Age Proof submitted by the Savings Bank Account holder.
- EVIDENCE OF HEALTH :
Satisfactory evidence of health as required by the Corporation shall be furnished by every eligible member, at the time of his entry into the Scheme, after the ' Enrollment Period', as incorporated in the "Consent-cum-Declaration Form" for joining the scheme.
- PREMIUM : Premium to be deducted from member's SB Account. The premium is Rs.330/- plus Service Tax (if payable) irrespective of date of entry i.e. during enrollment period or after that date during the first year. Renewal premium is chargeable as per the rate decided from time to time on Annual Renewal dates.
An assurance of Rs.2,00,000/- on death of the insured member is payable to the Nominee
- BENEFITS ON DEATH PRIOR TO TERMINAL DATE :
Upon the death of the Member prior to Terminal Date, the sum assured under the Assurance shall be payable to the nominated Beneficiary, provided the assurance is kept in force by payment of premium for that member
- ERMINATION OF ASSURANCE:
- On attaining age 55 years (age neared birthday) on annual renewal date
- Closure of account with the Bank or insufficiency of balance to keep the insurance in force
- SUSPENSION OF RISK : If the insurance cover is ceased due to any technical reasons such as insufficient balance for payment of premium on due date, the same can be reinstated after the grace period on receipt of premium and a satisfactory statement of good health.
- RESTRAINT ON ANTICIPATION OR ENCUMBRANCE :
The benefits assured under the Scheme are strictly personal and cannot be assigned, charged or alienated in any way.
- DISCONTINUANCE OR AMENDMENT OF THE SCHEME:
The "Bank" or "Corporation" reserves the right to discontinue the Scheme at any time or to amend the Rules thereof on any Annual Renewal Date subject to giving one month's notice. Any amendment to the Rules of the Scheme will be done based on mutual agreement between "Corporation" and "Bank".
All Assurances issued under the Scheme shall be Indian Contracts. They will be subject to Indian Laws including the Indian Insurance Act, 1938 as amended, the Life Insurance Corporation Act, 1956, the Income Tax Act, 1961 and to any legislation subsequently introduced. All benefits under the Scheme arising out of death of any Member shall be payable in Indian Rupees.
- MEMORANDUM OF UNDERSTANDING :
The Corporation will enter into a Memorandum of Understanding with the Bank incorporating all the Assurances affected under the scheme.
- GRACE PERIOD :
The Grace Period for payment of premium to the Designated Office of the Corporation shall be 30 days from the due date. In case of death during Grace Period, assured benefit as defined in rule 7 shall be settled on receipt of premium.
- APPOINTMENT OF BENEFICIARY:
Every Member shall nominate spouse, one or more of child/children, dependents to be the Beneficiary. Nomination shall be as per section 39 of Insurance Act, 1938 as amended from time to time. In case the Beneficiary is minor/s, appointee to receive the benefits is to be specified by the Member. The records relating to nomination will be maintained by the Bank in the Register of Members kept by them. In the event of death of the Member, the Benefits will be paid to the Beneficiary nominated by the Member.
- SURRENDER VALUE/ MATURITY BENEFIT:
There will be no Surrender value or Maturity Value payable under the policy.
- CLAIM SETTLEMENT;
On receipt of death intimation, the servicing bank branch shall send the Claim form (annexure 7) Death Certificate, Discharge form (Annexure 8) and Certificate of Insurance from the nominated Beneficiary and shall send to the Designated Branch of the Bank for preferring the claim with servicing Unit of LIC. On admission of the claim, the claim amount will be paid to the bank account of the nominee with intimation to the designated branch of the Bank (Annexure 9). In case of requirements or claim is not accepted, the same will be intimated to designated branch of the Bank
- RATES OF PREMIUM AND CONDITIONS OF ASSURANCE:
The rate of premium and conditions of Assurance under which the Corporation is prepared to arrange the Scheme shall be subject to an agreement between the Bank and the Corporation. The conditions of acceptance of risks and rates of premium may be amended by the Corporation from time to time on any Annual Renewal Date subject to 3 month's notice being given to the Bank.
Pradhan Mantri Suraksha Bima Yojana
Highlights of the Pradhan Mantri Suraksha Bima Yojana (PMSBY – for Accidental Death Insurance) are
- Eligibility: All IndusInd Bank saving account holders between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the modality, will be enrolled into the scheme.
- Policy period: The cover shall be for one year period starting from 1st June 2015 to 31st May 2016 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 2015 - extendable up to 31st August, 2015. For the saving A/c holder joining after 31st May 2015 and on or before 31st August 2015 the cover shall end on 31st May 2016.
- Premium: Rs. 12/- + service tax (per annum).
- Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.
- Risk Coverage: Total coverage (sum-insured) under the scheme is Rs. 2 Lakh.
Terms and conditions:
- Customer should not be insured under Pradhan Mantri Suraksha Bima Yojana under any other Saving Bank Account In case the same is found to exist, premium shall stand forfeited and no claims would be paid.
- The cover shall commence from the 1st of the month subsequent to the date of enrollment in the scheme. Customer will have to pay full annual premium even if join the Scheme after the commencement of the Group Policy.
- The membership in the scheme will remain in force as long as all premium due are paid until attaining age of 70 years as on Annual Renewal Date.
- The nominee details as available in the savings account will be updated in the policy. The personal details, as required, regarding admission into the Pradhan Mantri Suraksha Bima scheme will be shared with Cholamandalam MS general Insurance Company Ltd., under Group Policy No. 2839/00000484/000/00 certifying coverage as per the Scheme, subject to correctness of information provided regarding eligibility and receipt of consideration amount.
- Any information provided by the customer if found to be untrue, the membership to the scheme shall be treated as cancelled from the date of joining the scheme and all monies paid in respect thereof shall stand forfeited.
- Scope of Scheme: 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. Aadhaar would be the primary KYC for the bank account.
- Enrolment: The cover shall be for the one year period from 1st June 2015 to 31st May 2016. Applicants may give an indefinite/longer option for enrolment/auto debit, subject to continuation of the scheme with terms as may be revised. 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 and enable auto-debit will be enrolled in the scheme.
- Benefits and sum insured: The benefits payable, following an accident to the Insured member, under this scheme is as under:
||Table of Benefits
||Rs. 2 Lakh
||Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of one hand or one foot
||Rs. 2 Lakh
||Total and irrecoverable loss of sight of one eye or loss of use of one hand or one foot
||Rs. 1 Lakh
- Premium: Rs 12 /- per member per annum. The premium will be deducted from the account holder’s savings bank account through auto-debit facility in one instalment on or before 1st June of each annual coverage period. If the auto-debit takes place after 1st June, the cover shall commence from the first day of the month following the auto debit. In such cases also, the cover shall continue till 31st May of next year.
- 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:
- On attaining age 70 years (age nearest birthday)
- Closure of account with the bank or insufficiency of balance to keep the insurance in force
- 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
- 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. During this period, the risk cover will be suspended and reinstatement of risk cover will be at the sole discretion of Insurance Company. Participating banks will deduct the premium amount in May every year and remit the amount due to the Insurance Company in that month itself.
Atal Pension Yojana
The Government of India is extremely concerned about the old age income security of the working poor and is focused on encouraging and enabling them to join the National Pension System (NPS). To address the longevity risks among the workers in unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement, who constitute 88% of the total labour force of 47.29 crore as per the 66th Round of NSSO Survey of 2011-12, but do not have any formal pension provision, the Government had started the Swavalamban Scheme in 2010-11. However, coverage under Swavalamban Scheme is inadequate mainly due to lack of guaranteed pension benefits at the age of 60.
The Government announced the introduction of universal social security schemes in the Insurance and Pension sectors for all Indians, specially the poor and the under-privileged, in the Budget for the year 2015-16. Therefore, it has been announced that the Government will launch the Atal Pension Yojana (APY), which will provide a defined pension, depending on the contribution, and its period. The APY will be focussed on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA). Under the APY, the subscribers would receive the fixed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY. The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by any subscriber under APY would be 20 years or more. The benefit of guaranteed minimum pension would be guaranteed by the Government. The APY would be introduced from 1st June, 2015.