NIACL AO Mains 2019 – Insurance Questions for Mains | 28th February

Government through the Budget Speech announced three ambitious Social Security Schemes pertaining to the Insurance and Pension Sectors, namely Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and an the Atal Pension Yojana (APY) to move towards creating a universal social security system, targeted especially for the poor and the under-privileged. Hon’ble Prime Minister launched PMJJBY and PMSBY schemes nationally in Kolkata on 9th May, 2015.

PMSBY stands for Pradhan Mantri Suraksha Bima Yojana.

HDFC Life is a long-term life insurance provider with its headquarters in Mumbai, offering individual and group insurance.

Indian Railway Catering and Tourism Corporation (IRCTC), the Railways’ subsidiary, will offer insurance of up to INR50 lakh for free for air passengers who book their tickets through its portal. IRCTC has tied up with Bharti-Axa for the offer.

Syndicate Bank and SBI Life Insurance has announced that they have signed a bancassurance pact to offer a comprehensive financial planning solution to its customers. The agreement was signed in the presence of Syndicate Bank Managing Director and Chief Executive Officer Mrutyunjay Mahapatra and MD and CEO of SBI Life.

The government has constituted a seven-member panel to select managing directors of public sector insurance companies. According to sources, the panel would be headed by Banks Board Bureau (BBB) chairman BP Sharma. The other members of the panel are Financial Services Secretary, Department of Public Enterprises Secretary and Chairman of Insurance Regulatory and Development Authority of India.

Paytm (One 97 Communications Limtied) and arch rival Mobikwik, have simultaneously announced entry into online insurance payments and purchase of digital insurance on their platforms, respectively. Paytm has partnered with the Life Insurance Corporation of India (LIC) to offer online insurance premium payments on its platform. Softbank-backed Paytm will provide premium payment solutions from over 30 insurance companies including LIC, ICICI Prudential Life, Reliance Life and Max Life Insurance among others.

Atal Pension Yojana (APY) is a government-backed pension scheme in India targeted at the unorganised sector. It was mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley. It was launched by Prime Minister Narendra Modi on 09th May 2015 in Kolkata.

Atal Pension Yojana (APY) is a pension scheme for citizens of India focussed on the unorganised sector workers. Under the APY, guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.

HDFC ERGO General Insurance Company, India’s third largest non-life insurance provider in the private sector launched the ‘Cyber Security Awareness Week’ starting from October 21, 2018 to October 27, 2018. During the week, HDFC ERGO aims to create awareness about the facets of cybercrime and promote the need of cyber security among individuals under its theme ‘#HackSeLado’.

Reliance Health Insurance, a wholly-owned subsidiary of Reliance Capital has received R3 approval from IRDAI for its new health insurance business. The new company was commenced operations by the December quarter of 2018.

The PMJJBY is available to people in the age group of 18 to 50 years having a bank account who give their consent to join / enable auto-debit. Aadhar would be the primary KYC for the bank account. The life cover of Rs. 2 lakhs shall be for the one year period stretching from 1st June to 31st May and will be renewable. Risk coverage under this scheme is for Rs. 2 Lakh in case of death of the insured, due to any reason. The premium is Rs. 330 per annum which is to be auto-debited in one installment f rom the subscriber’s bank account as per the option given by him on or before 31st May of each annual coverage period under the scheme. The scheme is being offered by Life Insurance Corporation and all other life insurers who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose.

Insurance regulator Irdai has raised the minimum insurance cover for owner-driver to Rs 15 lakh for a premium of Rs 750 per annum, a move that will provide some succour to road accident victims. Currently, the capital sum insured (CSI) under this section for motorised two-wheelers and private cars/commercial vehicles is Rs 1 lakh and Rs 2 lakh, respectively. However, a few general insurers have been offering add-on covers under package policies with higher CSI over and above the stipulated on payment of additional premium.

State-owned India Post Payments Bank (IPPB) and private life insurer Bajaj Allianz Life Insurance Co Ltd (BALIC) has entered into a strategic partnership to provide life insurance solutions, especially at the doorstep of every household in the country.

Pradhan Mantri Suraksha Bima Yojana(PMSBY): -

The Scheme is available to people in the age group 18 to 70 years with a bank account who give their consent to join / enable auto-debit on or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis. Aadhar would be the primary KYC for the bank account. The risk coverage under the scheme isRs.2 lakh for accidental death and full disability and Rs. 1 lakh for partial disability. The premium of Rs. 12 per annum is to be deducted from the account holder’s bank account through ‘auto-debit’ facility in one installment. The scheme is being offered by Public Sector General Insurance Companies or any other General Insurance Company who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose.