The All India Bank Employees’ Association (AIBEA) has expressed concern over the issue of unclaimed insurance benefits under the Indian Government’s Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) schemes. The association has called on banks to take necessary steps to alert legal heirs and nominees of deceased account holders about the existence of these insurance policies.
C.H. Venkatachalam, General Secretary of AIBEA, addressed the issue in a letter to the Indian Banks’ Association (IBA), urging Chief Executive Sunil Mehta to implement measures that would help resolve the problem. According to AIBEA, many family members of deceased account holders are unaware of the insurance policies, leading to a significant number of unclaimed benefits.
AIBEA has suggested that banks should configure their Core Banking System (CBS) to provide an alert for staff members whenever family members of deceased account holders approach the bank for account-related matters. This alert would inform the bank staff about the existence of insurance policies, enabling them to notify the nominee or claimants and initiate the process to claim the insurance amount.
By implementing these measures, AIBEA hopes to raise awareness among account holders and their families about the insurance schemes and their benefits. This would ultimately ensure that the insurance benefits reach the intended beneficiaries, providing financial support during difficult times.