Mumbai: State-run lender Dena Bank on Monday signed agreement with LIC to provide insurance cover to its savings account holders under the Prime Minister's Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) scheme.
Under the Memorandum of Understanding, LIC will give a life cover of Rs 2 lakh in case of death of the insured person at a nominal premium of Rs 330 per annum.
Account holders in the age group of 18 to 50 years can avail of the product.
People who join the scheme before completing 50 years can continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
The scheme will come into effect from June 1, 2015.
The bank customers can join the scheme between June 1, 2015 to May 31, 2016.
"It is a very important step towards meeting the government financial inclusion plan. This will increase the insurance penetration," Dena Bank Chairman and Managing Director Ashwani Kumar told reporters after signing the MoU.
LIC Chairman S K Roy said, "This represents version two of financial inclusion of India. This will help in expanding the life insurance coverage through banking channel."
"We have already signed agreements with two banks for this product. We are in discussion with our other partner banks and will complete (the process) in 10 days," he said.
Dena bank will have separate branches for claim settlement. The bank currently has 1.2 crore savings accounts and is targeting to extend the life cover benefit to all the customers.