Kerala floods: Government asks PSU insurers to settle Jan Suraksha, Fasal Bima claims instantly

State-owned general insurance companies have been instructed to settle claims under the Jan Suraksha insurance schemes as well as Fasal Bima crop insurance on an immediate basis in Kerala. The insurance schemes under include the term insurance scheme (Pradhan Mantri Jeevan Jyoti Bima Yojana) as well as the personal accident scheme (Pradhan Mantri Suraksha Bima Yojana).

Rajeev Kumar, the financial services secretary of the finance ministry said that the claims will be settled instantly to compensate for the loss of life in the Kerala floods. Over 300 people have due to heavy rainfall and flooding in Kerala.

.@LICIndiaForever & PSU Gen Insurance companies have been instructed to settle all claims under #PMJJBY and #PMSBY on immediate basis to compensate the loss of lives #KeralaFloods@PMOIndia@FinMinIndia@NDRFHQ@PIB_India@PTI_News@Malayla_Manoram@DDNewsLive

— Rajeev kumar (@rajeevkumr) August 18, 2018

Jeevan Jyoti Bima and Suraksha Bima will offer Rs 2 lakh insurance to families for the affected parties. These are state sponsored insurance schemes with annual premium of only Rs 12 (for accident insurance) and Rs 330 (for term insurance).

Similarly, the finance ministry has also asked the PSU general insurers to settle the crop insurance claims to help farmers in Kerala.

Yesterday, the insurance regulator asked companies to simplify claims settlement procedure for Kerala flood victims and their kin. Insurance Regulatory and Development Authority of India (IRDAI) has said the insurance companies should follow a procedure similar to the one used to settle claims after the Chennai floods in 2015.

During the Chennai floods, insurance companies had done away with the practice of waiting for a death certificate in case a person’s body was not found. Instead, a statement from a municipal body or a list of deceased from government hospitals was considered adequate for settling death claims.