South-based private sector lender Federal Bank today entered into a pact with state-run general insurer New India Assurance (NIA) for providing cheaper accident cover to its savings bank account holders.
It signed a memorandum of understanding with NIA at Kochi for implementation of the Pradhan Mantri Suraksha Bima Yojana (PMSBY), which focuses on accident cover.
Through the tie-up, Federal Bank saving account holders between the ages of 18 and 70 will be able to get a cover of up to Rs 2 lakh by paying Rs 12 as annual premium, the bank said in a statement.
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Under the PMSBY, beneficiaries will get Rs 2 lakh for death due to an accident or for loss of sight and limbs.
Loss of sight in one eye or loss of one of the limbs will entail a cover of Rs 1 lakh.
The PMSBY, announced first in the Budget by Finance Minister Arun Jaitley in February, will be formally launched this weekend by Prime Minister Narendra Modi.
