May 8, 2015
Unions in the banking sector have cautioned their members to follow procedures while enrolling members under the government insurance schemes to be launched on May 9, said union officials.
Officials at some branches of nationalised banks told IANS that they were being pressured by the management to enrol account holders under the insurance schemes prior to its launch so as to show impressive numbers to the powers that be.
"Our top management has directed lower level officials to enrol customers under the insurance scheme by any means. So employees are filling up the forms in the names of customers," an official of a nationalised bank told IANS preferring anonymity for himself and his bank.
He said it is not known how the bank would proceed further on the issue.
"Whether the bank would debit the customer account's Rs.12 (for personal accident policy) and reverse the same if he objects to the debit is not known," he said.
The scheme clearly stipulates that express consent of the account holder is a must before enrolling him/her under the policy.
"In most branches the walk-in customer will be around 100-150 a day. But there are branches that claim collection of enrolment forms of around 300 in a day. This in normal course of business is not possible," he said.
"To satisfy myself, I had called around 150 customers to check out their views on their enrolment. While they agreed over phone and promised to come to the branch and sign the necessary papers the very next day, only one turned up as promised," he explained.
Thomas Franco, general secretary of the SBI Officer's Association, told IANS: "We are aware of the issue. The insurance scheme is good but the proper procedure is not being followed. We have asked our members to see the forms are duly filled so that no problem arises at a later date."
He said employees have been advised to get the Aadhar card details or any other proof with regards to the nominees.
As per the insurance scheme framework, an account holder aged between 18-70 would be provided a personal accident insurance cover (death, total disability) for Rs.200,000.
As a part of the enrolment form, an account holder also authorises the bank to debit his/her account each year by Rs.12 till contrary instruction is given.
The problem for the bankers would be high when there is a claim while the proposal form was not signed by the bank account holder.
"Going by the scheme of things, this may turn out to be a scam. There is no hurry in enrolling account holders. Banks can do this at their own pace rather than satisfying the egos of the powers that be," C.H. Venkatachalam, general secretary of the All India Bank Employees Association (AIEBA), told IANS.
"In the name of people schemes, the banking industry has become an extension counter of the government. While talking of giving autonomy for banks, the government is pushing its programmes through the banks," he said.
"The scheme is a good one. It will increase insurance penetration. But due to the pressure from the management, it may actually end up in a mess giving a bad name to the government," one banker warned.
Banks advertise Pradhan Mantri Bima Yojana ahead of the roll out-LiveMint-09.05.2015Officials at some branches of nationalised banks told IANS that they were being pressured by the management to enrol account holders under the insurance schemes prior to its launch so as to show impressive numbers to the powers that be.
"Our top management has directed lower level officials to enrol customers under the insurance scheme by any means. So employees are filling up the forms in the names of customers," an official of a nationalised bank told IANS preferring anonymity for himself and his bank.
He said it is not known how the bank would proceed further on the issue.
"Whether the bank would debit the customer account's Rs.12 (for personal accident policy) and reverse the same if he objects to the debit is not known," he said.
The scheme clearly stipulates that express consent of the account holder is a must before enrolling him/her under the policy.
"In most branches the walk-in customer will be around 100-150 a day. But there are branches that claim collection of enrolment forms of around 300 in a day. This in normal course of business is not possible," he said.
"To satisfy myself, I had called around 150 customers to check out their views on their enrolment. While they agreed over phone and promised to come to the branch and sign the necessary papers the very next day, only one turned up as promised," he explained.
Thomas Franco, general secretary of the SBI Officer's Association, told IANS: "We are aware of the issue. The insurance scheme is good but the proper procedure is not being followed. We have asked our members to see the forms are duly filled so that no problem arises at a later date."
He said employees have been advised to get the Aadhar card details or any other proof with regards to the nominees.
As per the insurance scheme framework, an account holder aged between 18-70 would be provided a personal accident insurance cover (death, total disability) for Rs.200,000.
As a part of the enrolment form, an account holder also authorises the bank to debit his/her account each year by Rs.12 till contrary instruction is given.
The problem for the bankers would be high when there is a claim while the proposal form was not signed by the bank account holder.
"Going by the scheme of things, this may turn out to be a scam. There is no hurry in enrolling account holders. Banks can do this at their own pace rather than satisfying the egos of the powers that be," C.H. Venkatachalam, general secretary of the All India Bank Employees Association (AIEBA), told IANS.
"In the name of people schemes, the banking industry has become an extension counter of the government. While talking of giving autonomy for banks, the government is pushing its programmes through the banks," he said.
"The scheme is a good one. It will increase insurance penetration. But due to the pressure from the management, it may actually end up in a mess giving a bad name to the government," one banker warned.
“Dear customer, XXX bank offers Pradhan Mantri Suraksha Bima Yojana, an accidental cover of Rs.2 lakh for annual premium amount of Rs.12. To enroll, SMS PMSBY <nominee name> Y to XXX from your registered mobile number. The premium amount will be debited from your bank savings account.”
Did you recently get this message from your bank? If not, then you may soon get it. In his budget speech, finance minister Arun Jaitley said the government will launch two insurance products— Pradhan Mantri Suraksha Bima Yojna (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The official rollout is set to happen on 9 May in Kolkata.
What is it?
PMSBY is an accidental death insurance cover. The sum assured is Rs.2 lakh for which you will have to pay a premium of Rs.12 plus service tax per year for the age group 18-70 years. Your nominee will get Rs.2 lakh, in case of accidental death, you will get Rs.2 lakh for 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.
You will get Rs.1 lakh as claim amount in case of total and irrecoverable loss of sight of one eye or loss of use of one hand or one foot. The cover is subject to exclusions of the policy. PMJJBY will cover both natural and accidental death to up to Rs.2 lakh. The premium will be Rs.330 plus service tax per year for age group 18-50 years. As per ICICI Bank Ltd website, you have to pay service tax for both products. Service tax will be 14% of the premium amount. The sum assured is Rs.2 lakh. On the death of the insured member for any reason, it is payable to the nominee. No claim is admissible for deaths during the first 45 days except for cases of death due to accident.
How does it work?
If you have a savings account with the participating bank you can buy any of these policies under Pradhan Mantri Bima Yojana. You have to give your consent to your bank to join or enable auto-debit to enroll into the scheme. You will be covered for one year starting from 1 June 2015 to 31 May 2016. You have to renew the policy every year. You will have to join this scheme through savings bank account by 31 May. You also get an extension up to 31 August to join the scheme.
The premium will be directly auto-debited by the bank from your account. This is the only mode available. For PMJJBY you will have to yourself certify of good health. In case you have more than one insurance policy under this scheme, the premium you have paid will be forfeited. Also no claims would be paid if you have multiple insurance under this scheme. The cover will start from the 1st of the month from to the date of enrolment in the scheme. The nominee will be the same as your savings account nominee.
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