April 8, 2006	Saturday	Rabi-ul-Awwal 9, 1427

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ISLAMABAD, April 7: The National Bank of Pakistan (NBP) has begun deducting Rs20 from account-holders every month under a life insurance scheme without any prior notice, a source in the bank told Dawn on Friday.

The insurance scheme, known as the NBP shield protection, has been started by the bank in collaboration with the US-based American Life Insurance Company (Alico) to give insurance cover to clients in case of accidental death due to riots, civil commotion and acts of terrorism.

Although the bank has already begun making deductions from the accounts of its clients, it does not accept responsibility in case the insurance company rejects death claims due to any reason.

It is mentioned in a brochure issued by the bank that: “NBP will not be responsible in any manner if your claim is rejected.”

Under the scheme, the bank expects to collect about Rs24 million every month from its 1.2 million account holders.

Some clients said that for the last two months NBP had cut Rs20 from their accounts but had not informed them about the deduction.

Under the shield protection scheme, the claimant of an approved claim will get Rs200,000 from Alico. “But the money being deducted from the account holders’ accounts will not be accumulated as the insurance of Rs20 remains valid for one month only and for the next month another Rs20 would be deducted for the next term,” the source said.

The insurance scheme is provided to account holders ranging from 18 to 75 years of age and in case of death of the insured client, the heirs of the deceased would have to go for a long process as they would have to submit a claimant and physician statement, original death certificate, hospital death certificate, original computerised national identity card, police report, newspaper clipping if any and statement of the deceased’s account.

When contacted, a senior official of the NBP said the scheme was launched for the welfare of the clients.

He agreed that the bank had started deducting Rs20 per month without getting the consent of the account holders. He, however, said those who did not want to avail this facility from the bank could discontinue the policy by submitting an application to the relevant branch.

In response to a question about the amount to be given to the claimant of an approved claim, the official said that the insurance amount of Rs200,000 was probably insufficient and should be increased. “We have already suggested to our high-ups to increase the insurance amount, so that it can provide financial support to the bereaved families.”