Saturday, June 15, 2024

Bankers should alert legal heirs, nominees to claim under PM insurance schemes: AIBEA

The Core Banking System (CBS) of a bank should be configured in such a way that the bank staff are able to inform the family members of deceased account holders about the existence of an insurance policy, said a top leader of All India Bank Employees’ Association (AIBEA).

In a letter to Sunil Mehta, Chief Executive, Indian Banks’ Association (IBA) C.H.Venkatachalam, General Secretary, AIBEA said: “You are aware that the Government’s Schemes – Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana are being extended to the account holders of the Banks.”

Banks do auto debit from the accounts of the account-holders towards the premium payable for these policies.

Under these policies, the family of the victims are eligible to claim the insurance Aamount in case of death, or death due to accidents or even loss of limbs in such accidents.

“Since separate Insurance Policies are not being issued to the account holder who are members of these Schemes, the family members are mostly unaware that the deceased person had subscribed to these Insurance Schemes and hence are eligible to claim the insured amount. Hence these benefits will remain unclaimed,” Venkatachalam said.

Venkatachalam urged Mehta to have the banks put in place a system whereby a special alert can be made available in the Bank account in the CBS system so that when the nominee/family of the deceasedAperson comes to the bank to wind up the account or to delete their namesAfrom the joint account, the alert would help the Branch staff to inform the nominee/ claimants about the existence of an insurance policy.

This will enable the nominee/legal heir to initiate the process to claim the insurance amount, Venkatachalam added.

(Venkatachari Jagannathan can be reached at



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