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The National Savings Bank (NSB) - a premier savings bank in the country offered free life insurance coverage for savings account holders from January 1. The decision to offer free, life insurance coverage as a value-addition for savings account holders was initiated by D. M. Swaminathan, Chairman, National Savings Bank.

The life insurance scheme is probably offered for the first time in Sri Lanka, because it covers all types of savings products. At present, the bank has over five million savings account holders with an extensive network of over 100 branches, a bank official said.

Savings Account holders of NSB will be eligible for free life insurance coverage, under the following benefits plan: Rs. 10,000 to Rs. 25,000 - 4 times the account balance in the event of death, Rs. 25,001 to Rs. 50,000 - 3 times the A/C balance subject to the minimum of Rs. 100,000, Rs. 50,001 to Rs. 100,000 - 2 times the A/C balance subject to the minimum of Rs. 150,000 and over Rs. 100,001 - Rs. 300,000 To be eligible for benefits, savings account holders must maintain an average, minimum account balance of Rs. 10,000 for three months immediately prior to death and the age limit for eligibility is between 18 to 70 (completed).

A waiting period of three months is applicable for new savings account holders, and in case of joint account holders, both lives are covered and benefit payable only on first death of one of the account holders during one calendar year.

For minor savings accounts, where the holder is under the age of 18 insurance cover will be granted to the guardian/legal guardian.

Savings account holders do not have to undergo a medical examination to be eligible for coverage. In addition, all claims will be settled within three working days, provided all the documentation sent for processing are in order. NSB offers the insurance coverage in partnership with Union Assurance Limited, the bank said in a statement.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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