P & Sb To Give Accident Insurance Cover To Savings A/C Holders

The Punjab & Sind Bank is to become the first public sector bank to provide accident insurance cover to its savings account holders. It has entered into an agreement with National Insurance Company for the scheme.

The insurance cover will be provided to depositors who have a minimum balance of Rs 1,000, and in the case of joint account holders, the minimum balance will be in multiples of the number of persons holding the account for two persons, the minimum balance will have to be Rs 2,000 and so on.

Sources pointed out that since the offer is a group insurance scheme, the National Insurance Company is offering a discount of over 60 per cent on the premium charge. A bank official said the idea of the scheme is to pass on the benefit of lower premium to our clientele.

 

The bank official said: Depositors under the scheme are provided with an accident insurance cover under the group personal accident policy of the National Insurance Company. The insurance coverage is subject to the terms and conditions of the National Insurance Company and the policy of insurance issued by them.

The accident death insurance coverage will be Rs 1 lakh. The group personal accidental policy provides a worldwide cover against death and disability and payment of claims is made in India in rupees, the bank official said.

The maximum liability of the insurance company during any one year of the insurance is limited to the capital sum insured.

To begin with, the insurance premium will be at the rate of Rs 50 per head, which will be debited to the account on the date of the opening and subsequently on October 31 each year.

These charges are subject to revision from time to time, the bank official said.

The National Insurance Company scheme will be provided to depositors who have a minimum balance of Rs 1000.