Banks in the district have an uphill task lying ahead to get the ambitious targets set to get the savings bank account holders linked to the two new insurances schemes mooted by the Union Government.
Banking sources told The Hindu that considering the low average balance in Basic Savings Bank Deposit (BSBD) accounts in the district, estimated at less than Rs. 500, and the presence of a large number of zero balance accounts, it would be hard to draw the account holders to opt for the new schemes namely Pradhan Manthri Jeevan Jyothi Bima Yojana (PMJJBY) and Pradhan Manthri Suraksha Bima Yojana (PMSBY).
“Another problem is that those savings bank account holders having higher balances will already have opted for insurance schemes that give medical expense coverage incurred for treatment, which the large section of people consider as more important,” some officials pointed out.
In the case of PMJJBY, it offers life insurance coverage to the savings bank account holders aged between 18 and 50 years only for death due to any reason. Under accidental insurance scheme of PMSBY, compensation would be offered for death and for irrecoverable loss of eye sight or loss of limbs.
The maximum compensation given under both schemes would be Rs. 2 lakh.
Premium
Under the PMJJBY, the annual premium was pegged at Rs. 330 which is to be deducted from the account if the account holder gives an undertaking to join the scheme.
Likewise, the annual premium for PMSBY scheme was fixed at Rs. 12 per annum.
“Even if the account holders are made to convince to join the scheme, we have to see whether they continue to pay the premium in the subsequent years and we will also be not able to deduct the premiums from those accounts which have extremely low balances, especially the BSBD accounts,” some bank officials opined.
Each of the banks were given huge targets of getting the account holders linked to the schemes with the figures varying from bank to bank in the district before the end of this week.
