Pradhan Mantri Jan Dhan Yojna was basically framed to remove financial un-touchability of a section of population. This plan not only included the opening of new bank accounts with even zero balance, but provision of RuPay debit card and accidental cover as well.
According to the esteemed PM of India, this accidental cover up will help the poor family to deal with any unforeseen casualty. Under JanDhanyojna, the government will provide accidental cover of INR 1lakh to the new bank account holders who have opened the bank account under this scheme. Earlier it was declared that the personal accident insurance cover would be doubled, that is, made INR 2lakh if the account is opened within 100 days of scheme launch.
According to the provisions in this scheme following will be done:
- Account holders with even zero balance in their account will be provided an accidental insurance cover of INR 1lakh that will be given by HDFC Ergo. But in this, a condition was also added that the account holder has to perform at least one transaction in 45 days.
- The account holders who will open their accounts between date of launch to 26th January 2015 with more that 1 lakh rupees in it, will get an additional coverage of INR 30,000 that will be provided by Life Insurance corporation. It will carry a premium of INR 90 every year.
- After successful operation of account for more than six months, an overdraft of first INR 2500 and then INR 5000 from the bank. But this facility is limited to one account per family. Overdrafts will be provided preferably to a lady member of the family.
- The insurance cover will be provided to individuals between 18-60 years only. Only one person per family will be eligible for this insurance cover. Also, if the person is getting benefits from any other government scheme, he/she will not be eligible for the life insurance cover benefits.