Nominee receives Rs. 40 lakh under personal accident insurance and becomes eligible for another Rs. 6 lakh under term life cover
HYDERABAD (India CSR): Canara Bank has extended insurance support of Rs. 46 lakh to the nominee of a Premium Payroll Account holder who died in an accident. Late Neela Bai maintained her Premium Payroll Account with Canara Bank’s Mozzamjahi Market Branch in Hyderabad. Following her accidental death, her nominee, K. Lakshman Nayak, received an insurance claim of Rs. 40 lakh under the personal accident insurance benefit linked to the account.
He is also eligible to receive Rs. 6 lakh under the term life insurance cover. This takes the total financial assistance available to the family to Rs. 46 lakh.
Financial Support During a Difficult Period
The insurance settlement provided timely financial assistance to the bereaved family during a period of emotional and financial difficulty. K. Lakshman Nayak expressed gratitude to Canara Bank for facilitating the insurance benefit. He said the financial support had helped the family cope with the consequences of the unexpected loss. He also appreciated the bank for providing value-added protection through its Premium Payroll Account.
Canara Bank provided Rs. 40 lakh under personal accident insurance, while the nominee is eligible for another Rs. 6 lakh under term life cover.
Insurance Benefits Linked to Banking
The case highlights the role bundled insurance benefits can play in protecting salaried individuals and their dependants. Premium payroll accounts may include benefits such as personal accident insurance and term life insurance, subject to the account category, eligibility requirements and applicable policy conditions. Such benefits can provide an important financial safety net when the earning member of a family dies unexpectedly.
Total Insurance Assistance
| Insurance benefit | Amount |
|---|---|
| Personal accident insurance claim | Rs. 40 lakh |
| Term life insurance eligibility | Rs. 6 lakh |
| Total financial assistance | Rs. 46 lakh |
Strengthening Customer Financial Security
Canara Bank said the settlement reflected its commitment to strengthening the financial security of customers through insurance benefits linked to its banking products. The case also underlines the importance of customers maintaining updated nominee details and understanding the insurance protection available through their salary or payroll accounts. Account holders should review eligibility conditions, coverage limits, activation requirements and exclusions associated with bundled insurance benefits.
