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).
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).
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Often, those enrolled in insurance schemes without consent are not aware that they are paying a premium for an insurance cover. This prevents family members from availing the schemes’ benefits, rendering their premium payments—unauthorised to begin with—futile.
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In August 2023, an officers’ union of government-run UCO Bank sent a letter to its managing director & CEO, alleging that account holders in Dehradun were illegally enrolled in these government schemes from the back-end by the head office. Article 14 has a copy of the letter.
It says that in July-end, the zonal office in Dehradun sent the branches a list of accounts eligible for PMJJBY and PMSBY and asked the branches to activate the schemes in all of them, the letter said. Many branch managers refused to do so without customers’ consent, only for the head office to do this from the back-end.
The union’s letter said customer complaints began to trickle in, and branch managers requested their zonal office to issue refunds, but the zonal office instead instructed them to collect and backdate enrolment forms.