Death certificates by panchayat, anganwadi workers enough to process Covid-19 claims: IBA to banks

• Follow

Death certificates issued by panchayats and anganwadi workers can be accepted to expedite processing of claims of settlement of Covid-19 victims if the concerned municipal bodies delay in issuing such documents, Indian Banks Association (IBA) told its member organisations on Tuesday.

“Indian Banks Association advises banks to pay balance & settle claims of surviving family members of Covid-19 deceased quickly to mitigate delays and hardship,” IBA twitted.

DFS instruction

IBA also quoted a statement by Department of Financial Services to this effect and, in general, emphasised the need for quick disposal of such claims to mitigate hardships in the victim families.

IBA the apex body with a membership of the management of about 250 of banks and financial institutions, has urged its members to take proactive steps to ensure fast disposal of claims of the family members of those who died of Covid-19.

In an appeal on Tuesday, IBA urged banks to designate grievances redressal officers to expedite settlement of the accounts of the deceased.

An official of State Bank of India said lack of proper documentation is delaying processing some of the Covid-19 claims and the IBA communication could be prompted by these delays.

Insurance claims

Quick settlement of insurance claims was also urgently needed, pointed out IBA. “Banks to facilitate insurance claims if deceased had subscribed to PMJJBY or PMSBY. Bank staff to be sensitised to extend full help,” wrote IBA on social media.

PMJJBY and PMSBY are Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana respectively.

Anyone between 18 and 50 years are eligible to buy PMJJBY insurance cover of Rs 2 lakh for an annual premium of Rs 330.

PMSBY cover can be purchased by anyone between 18 and 70 years with a bank account. It offer Rs 2 lakh cover for accidental death and full disability and Rs 1 lakh for partial disability. The premium is Rs 12 annually.

There has already been a lot of allegations that insurance companies beyond the jurisdiction of IBA are delaying Covid-19 specific policies to stem a rising tide of claims.