Banks rush to enrol customers for new insurance schemes

Banks are rushing to get their customers enrolled into new insurance/pension schemes launched by the Government.

Prime Minister Narendra Modi recently had launched two low cost insurance schemes, Jeevan Jyoto Bheema and Jeevan Suraksha Bheema, besides the Atal Pension Yojana.

The banks are to be the main drivers of enrolments in view of the huge customer base. In a trial run, banks could enrol over five crore people, and they are now going all out to reach out to them. Customers of different banks, including private banks, are already receiving messages requesting them to opt for the schemes and authorise banks to deduct the first year premium from their respective accounts.

“Even before launching the scheme, every one our branch has sensitised customers. We have sent SMSes to our customers on Sunday,” CR Sasikumar, Deputy Managing Director, State Bank of India (SBI) told

In addition, SBI has gone on camp mode in most of the places for mobilising higher subscriptions. “These are very good schemes from the social security point of view and an all-out effort has to be made,” he added.

Other banks including private banks such as ICICI Bank are doing the same. “Besides sending messages on mobiles, we have asked our branches to run special campaigns on every Saturday and Sunday,” Durga Prasad, General Manager (Financial Inclusion and SLBC) said. The State Level Bankers’ Committees in all States are specially monitoring the progress.

While all this mounts additional pressure on banks, they see advantages too. The insurance schemes, especially accident insurance, will drive people who opened zero–balance accounts under the Prime Minister’s Jan Dhan Yojana (PMJDY) to deposit cash in their accounts as the premium needs to be deducted from the account.

“Over a period of time, we see a possibility of these accounts maintaining some minimal balance and undertake some transactions too due to the new insurance schemes,” an SBI executive said. There are about 13 crore accounts opened under the PMJDY out of which approximately 70 per cent have zero balance and no transactions.

Operationally, some bankers feel that it will be relatively easier to get subscriptions for insurance and customers might not rush to go for the Atal pension scheme. “Initially, we have been asked to focus more on the insurance schemes but later we have been told that all three are important. We have to see how this goes,” said a senior official in IDBI Bank.