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Insurance Awareness- Recent Important Updates 2015

GIC to design policy to cover civil nuclear liability:

The government, in a written reply to a Rajya Sabha question, on 7 May 2015, said

that an insurance product to cover civil liability for nuclear damages is in the words. This

is intended for the benefit of operators of nuclear power plants as well as suppliers (both

domestic and foreign). The Department of Atomic Energy (DAE) in coordination with the

Department of Financial Services (DFS) is considering a proposal for developing an

appropriate insurance product for this purpose. This insurance product will be

developed by the General Insurance Corporation of India (GIC Re).

Cabinet gives green signal for insurance, pension schemes:

The Union Cabinet, on 6 May 2015, approved operationalisation of three Centre-

sponsored insurance and pension schemes. Atal Pension Yojana, Pradhan Mantri

Jeevan Jvoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana in all States and

Union Territories. The schemes were announced by Finance Minister ArunJaitley in his

Budget speech earlier this year. Atal Pension Yojana will benefit two crore subscribers

in the first year.

The Pradhan MantriSurakshaBima Yojana provides insurance against

accidental death and disability at a premium of Rs. 12 per annum. The risk

coverage for accidental death and full disability is Rs. 2 lakh while for partial

disability the amount is Rs. 1 lakh.

The Pradhan Matri JeevanJyoti Bima Yojana provides life insurance cover of

Rs. 2 lakh for death at an annual premium of Rs. 330 while Atal Pension

Yojana is a pension scheme for old-age income security.

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LIC eases claim settlement for quake victims in India:

Countrys largest life insurance Life Insurance Corporation (LIC), in May 2015,

announced to have eased the procedure for settlement of claims on the lives of victims

of the earthquake. These concessions and relaxations are in the nature of simplified

procedure for death and disability claim settlement, loss of policy document and claim

settlement on the lives of missing persons.

Reliance Life launches new health insurance plan:

Reliance Life Insurance Company (RLIC), in May 2015, launched Reliance Health

Total, a health insurance plan with unique advantages. This plan provides a complete

health cover, including a fixed benefit cover for hospitalization, critical illnesses and

surgeries, along with reimbursement for other health related expenses.

Canara Bank ties up with insurers:

Canara Bank in April 2015, entered into memorandum of understanding with Life

Insurance Corporation of India for offering the Pradhan Mantri Jeevan Jyoti Bima

Yojana insurance cover to all its eligible customers. The bank has also partnered with

the United India Insurance Company for offering the Pradhan Mantri Suraksha Bima

Yojana insurance cover.

According to the MoU, LIC will offer a life cover of Rs. 2 lakh in case of death of

the insured person at a nominal premium of Rs. 330 per annum. All savings bank

account holders in age group of 18 t0 50 years can avail group of 18 to 50 years

can avail themselves of product.

Similarly, United India Insurance will give accident insurance scheme offering

cover for death or disability on account of accident.

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SBI joins hands with National Insurance:

Countrys largest lender States Bank of India, on 30 April 2015, entered into a tie-up

with the National Insurance Company (NICL) to offer non-life cover to its savings

account holders under the Pradhan Mantri Suraksha Bima Yojana (PMSBY). The bank

will offer personal accidental death and disability cover of Rs. 2 lakh under the scheme.

The customer will have to pay an annual premium of only Rs. 12 All the savings account

holders in the age group 18 to 70 years will be eligible for the cover.

IRDA launches, motor insurance awareness campaign:

IRDAI, on 29 April 2015, launched an awareness campaign on motor third-party

insurance jointly with Cyberabad Police. 55 per cent of the vehicles plying on the roads

in the country do not have the mandatory motor third-party insurance will attract a Rs.

1,000 fine or three months imprisonment or both in line with the Motor Vehicles Act.

Highlights of PMSBY and PMJJBY:

PMSBY- Pradhan Mantri Suraksha Bima Yojna:

As per Pradhan Mantri Suraksha Bima Yojna (PMSBY) scheme guideline, bank

customers in the age bracket of 18-70 years will be eligible for risk coverage of Rs. 2

lakh for accident death and full disability and Rs. 1 lakh for partial disability. The

premium is just Rs. 12 per annum plus service tax. A person has to opt for the scheme

every year. She/he can also prefer to give a long-term option of continuing in which the

account will be auto-debited every year by the Bank.

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PMJJBY- Pradhan Mantri Jeevan Jyoti Bima Yojana:

As per Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme guidelines,

customers in the age bracket of 18-50 years will be eligible for risk coverage of Rs. 2

lakh for life insurance. The premium is just Rs. 330 per annum (plus service taxes as

applicable), which will be directly auto-debited by the bank from subscribers account.

Initial enrollment under the scheme will be for one year period which would be renewed

every year as per customer auto-debit mandate in this regards. In case of joint account

holders, each person can take Rs. 2 lakh cover by paying the premium each.