It’s a good policy to keep kin in the loop about insurance taken

When B Kalaivani and her (late) husband K Lakshmana Kumar opened a savings bank account (jointly) in September last and agreed for an auto debit of ₹330 towards the Pradhan Mantri Jeevan Jyoti Bima Yojana premium, Kalaivani, a mother of three, had no clue that this would come in handy some day.

And so it did before long, when Lakshmana Kumar breathed his last due to pneumonia. The widow, though a post-graduate in psychology, says she was not aware that her husband had opted for cover under the PMJJBY scheme, until someone asked her to approach the bank.

“That was my first visit to the bank. I showed my pass book, explained my position and submitted the claim form. I am now in receipt of the cheque for ₹2 lakh,” she told BusinessLine , receiving the instrument from YP Rao, AGM, Corporation Bank (Saibaba Colony branch, Coimbatore).

Stating that this was the first claim, Rao said that the branch was able to get it within a fortnight of submission of papers to the bank’s head office in Mangaluru.

He recalled the campaign launched by the branch at Ward No 14 here. “It was largely un-banked, comprising over 3,000 families. We got all the residents on board and a good number of them opted for the PMJJBY cover.”

“There is no policy document, just a passbook entry to signify that the account-holder is covered under the scheme,” he said, adding “those that have opted for the scheme should let their family members know that he/she is covered under the scheme. Else, it might go unnoticed and the beneficiaries may not be able to benefit from the cover, should an eventuality take place,” Rao said.

P Mohankumar, Managing Director, Link-k Insurance Broker Company, observed that people by and large faile to share investment details with either the spouse or other family members. “As long as the going is good, it will not matter, but if something were to go wrong, everything will get stuck,” he said and cited the case of an individual who failed to provide for his dependants.

Not wanting to name the deceased, he said “this friend of mine led a hi-fi life. He failed to take a life protection cover (term plan) during his life time. When a car accident took his life, his wife realised that his driving licence had expired and he had not renewed it.

“They were, therefore, forced to sell the damaged vehicle as salvage; she was not aware of his business commitments. Even before she came to terms with the sudden loss of her husband, she was literally on the streets,” he said, emphasising the need to opt for adequate life cover and more importantly, sharing the details with kin.

COMMENT NOW