For more than a year, engineering graduate Kundan Kumar from Saran district of Bihar has been trying to unsubscribe from an insurance policy he did not choose to buy in the first place.

Without his consent, Kumar’s bank deducted money from his account and enrolled him in the union government’s life insurance scheme—Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Days after his account was debited on 29 December 2022, upset that the bank, supposed to safeguard his money, took it without permission, Kumar, 26, sought a copy of his insurance application form from the bank under the Right to Information (RTI) Act, 2005.

On 2 February 2023, his bank, State Bank of India (SBI), replied, “Application form not found for the aforesaid insurance.”

The bank has not granted him a refund for this unsolicited insurance. He told Article 14 in an interview that he was still looking for a way “to get out of this dirty system”.

Like him, many across the country have protested unauthorised debits from their bank accounts for the government's insurance schemes.

Apart from life insurance, banks have also been enrolling customers without consent in the accident insurance scheme, called Pradhan Mantri Suraksha Bima Yojana (PMSBY). These complaints also extend to the centre’s micro-pension scheme, called Atal Pension Yojana (APY).

Like Kumar got enrolled in PMJJBY without consent, his mother was enrolled in the APY without consent, he said.

While the PMJJBY premium is Rs 436 a year, PMSBY costs Rs 20 a year. Once a customer is subscribed to these schemes, the fees are deducted automatically from his/her account annually.

The PMJJBY provides a cover of Rs 200,000 to a policyholder’s nominee in the event of death due to any reason. The PMSBY provides Rs 200,000 in case of death due to an accident and Rs 100,000 in case of a severe accident injury.



Read more - https://article-14.com/post/banks-want-forged-paper-trails-after-taking-money-illegally-from-customers-for-modi-govt-s-flagship-schemes-66020a2da1d42