LIC

Clarity Required on Pradhan Mantri Jan Dhan Yojana – LIC

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Life insurance cover of Rs 30,000 launched under the Pradhan Mantri Jan Dhan Yojana needs some modalities to get sorted out on the premium payment and claim payment. For the clarity on the administration of the scheme and collection of premiums, LIC had a meeting with finance ministry officials. The clarification is expected within next 2-3 days as per a senior LIC official. LIC is to provide the cover to the people who will open bank accounts by January 26, 2015 under the financial inclusions scheme. Under the Jan Dhan scheme, about 25 million bank accounts have been opened and many will be eligible for life cover by LIC of Rs. 30,000.

Aam Admi Bima Yojna (AABY), administered by LIC is a social security scheme that would execute the process of claim settlement. AABY includes member falling in the age group of 18-59 years. Also, the member needs to be the head of the family or identified by the vocational group as marginally above the poverty line or an earning member of the below poverty line family.

For a cover of Rs 30,000, a premium of Rs 200 will be charged initially out of which 50% is funded by the Social Security Fund. And the remaining 50% for Rural Landless Household is borne by the state government or union territory. The nodal agency and / or member and / or state government / Union territory are responsible to borne the remaining 50 % in case of other occupational group.

On august 28, when the Jan Dhan scheme was officially launched, Prime Minister Narendera Modi announced about the life cover which was initially not the part of the scheme. Under the scheme, individuals will also get an accident insurance cover of Rs. 1 lakh

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