RBI/2005-06/42
RPCD.PLFS.BC.No.8 /05.05.09(PAIS)/2005-06
July 5, 2005
The Chairman & Managing Director/CEO
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Personal Accident Insurance Scheme (PAIS) for
KCC holders
Please refer to our circular RPCD.PLFS.BC.No
24 / 05.05.09/2004-05 dated August 28, 2004, advising that General Insurers'
(Public Sector) Association of India (GIPSA) had, as an interim measure, agreed
to renew the Master Policy for a period of one year, on the then existing terms/rates
and conditions.
2. In order to safeguard the interest of the
KCC holders by providing personal accident insurance coverage on an ongoing
basis at competitive rates/terms, it has been decided that banks may be allowed
the discretion to approach either any GIPSA member general insurance company
or any private sector general insurance company, to take advantage of the competitive
offers. However, the banks may, while negotiating with the insurers, keep in
mind the guiding principles of PAIS, especially the premium sharing formula,
coverage etc.
3. With the banks having the freedom to opt
for any insurance company of their choice to provide personal accident insurance
cover to the KCC holders it is hoped that the banks will play a proactive role
in providing this social security cover to the farmers. This 'add on' benefit
to the farmers under the KCC Scheme is expected to bring in an increasing large
number of farmers under the KCC fold, thereby leading to complete coverage.
4. The banks may, therefore, initiate immediate
steps in this regard, with a view to provide continued accident insurance coverage
to the KCC holders.
Yours faithfully,
(K.K.Saraf)
General Manager
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