The government will review after five years the structure of Rs 30,000 life cover given as incentive to the poor for opening bank accounts under the flagship Pradhan Mantri Jan Dhan Yojana (PMJDY), said the media report.
"Thereafter, the scheme will be reviewed and terms and condition of its continuation, including the issue of future payment of premium by the insured thereafter, would be suitably determined," the Finance Ministry said.
Under the PMJDY, a person who opened bank account for the first time during August 15, 2014 to January 26, 2015 is eligible for the life insurance scheme.
Currently, state-owned insurance behemoth LIC has been asked to pay premium for life cover under PMJDY, said sources.
Generally, the person (age group of 18 to 59) who is head of the family or an earning member of the family is eligible for the benefit.
However, government employees (serving/retired) and their families, persons filing income tax return/TDS deductee and person covered under Aam Adami Bima Yojana, are ineligible for life cover under PMJDY.
About 12.39 crore accounts have been opened so far under the PMJDY financial inclusion programme.