The State Bank of India (SBI) offers customers a significant benefit—free accidental insurance coverage of up to ₹2 lakh.
This offer is available to those who have a Pradhan Mantri Jan Dhan Yojana (PMJDY) account or opened an account before August 28, 2018.
Additionally, SBI extends this coverage to nominees facing a mishap outside India.
How to Avail SBI’s ₹2 Lakh Insurance Benefit
To avail of the free insurance benefits, customers must open a Pradhan Mantri Jan Dhan Yojana (PMJDY) account with SBI.
For existing customers who opened their accounts before August 28, 2018, the insurance amount is ₹1 lakh. However, for new PMJDY accounts opened after this date, the coverage increases to ₹2 lakh.
This insurance benefit also extends to customers who apply for the SBI RuPay Jan Dhan Card, which includes inbuilt accident insurance coverage.
Understanding the Pradhan Mantri Jan Dhan Yojana (PMJDY)
Launched by the Indian government in 2014, the Pradhan Mantri Jan Dhan Yojana is a financial inclusion initiative to provide access to essential financial services. These services include:
- Basic Savings Bank Account: Ensures every household has access to banking facilities.
- Need-Based Credit: Access to credit facilities.
- Insurance and Pension: Offers insurance coverage and pension schemes for weaker sections and low-income groups.
The PMJDY also facilitates channeling all government benefits directly to the beneficiaries’ accounts, thereby supporting the Centre’s Direct Benefits Transfer (DBT) scheme.
Eligibility and Required Documents for Opening a PMJDY Account
Eligibility: Any Indian citizen aged ten years or above can open a Jan Dhan account. Those with a basic savings account can transfer it to a PMJDY account.
Required Documents:
- Aadhaar Card: If available, no other documents are needed.
- Address Change: A self-certification of the current address is sufficient if the address has changed.
- Alternative Documents: If Aadhaar is unavailable, the following Officially Valid Documents (OVDs) can be used: Voter ID Card, Driving License, Passport, or NREGA Card. These can serve as both Proof of Identity and Address.
- Low-Risk Category: If none of the above documents are available, a person classified as ‘low risk’ can submit an Identity Card issued by the Central/State Government or a letter from a gazette officer with a duly attested photograph.
Claiming the Accidental Insurance Benefits
In case of an accident, nominees must submit the following documents to claim the insurance:
- Claim Form: Filled out completely.
- Death Certificate: Of the deceased person.
- FIR, Post Mortem, and FSL Reports: Related to the accident.
- Aadhaar Card: Of the deceased. These documents must be submitted within 90 days of the accident to claim the insurance.
Benefits of Having a Jan Dhan Account
- Interest on Deposits: Earn interest on your savings.
- Accidental Insurance Cover: ₹1 lakh for accounts opened before August 28, 2018, and ₹2 lakh for accounts opened after that.
- No Minimum Balance Requirement: No need to maintain a minimum balance.
- Easy Money Transfer: Simplified process for transferring money across India.
- Direct Benefit Transfer (DBT): Receive government benefits directly into your account.
- Overdraft Facility: Eligible after satisfactory account operation for six months.
- Access to Pension and Insurance Products: Broader financial inclusion.
By opening a PMJDY account with SBI, you gain access to these benefits and ensure that you and your family are financially secure.