NEW YORK, Jan 17: The National Bank of Pakistan on Friday launched a new scheme providing insurance coverage to its US based remittance customers in case of accidental deaths and dismemberment.

The NBP signed an agreement with American International Life Company of New York (AILIFE) a member company of American International Group (AIG) at a ceremony held at the bank's Wall Street office here on Friday. Also present at the signing ceremony were Pakistan's Ambassador Ashraf Jehangir Qazi and president and the chief executive officer of American International Underwriters Nicholas C. Walsh.

Under the scheme an amount of $10,000 will be provided as insurance coverage to remittances customers of the National Bank as part of the scheme called Accidental Death and Dismemberment.

There are more than 700,000 Pakistanis living and working in the United States who together control approximately $250 billion in assets and average $300 to $500 in remittance per month. Those who remit amount for overseas distribution through NBP will automatically receive the insurance coverage at no additional cost to the customers.

The bank will be paying premium costs on the customer's behalf.

The coverage will be made available for a period of 12 months from the first remittance and only one transaction will be required to become eligible for the programme. The programme is available to anyone using NBP's operation in New York City, and Washington DC while plans is expected to be offered to customers in the United Kingdom and Europe in next 6 to 12 months.

Speaking at the ceremony Mr Walsh said, this is the first programme of its kind that is being introduced to the remittance population in the US. He expressed pleasure in working with a Pakistani bank and said by providing such an important service, it is anticipated that coverage will bring significant financial value not only to the bank but also to its customers. Mr Walsh said the programme also adequately reflects the growing economic ties between the US and Pakistan.

Regional chief executive of the NBP for America Rafique Bengali on the occasion said home remittances are not only important for Bank's customers and their beneficiaries in Pakistan but also to the national economy and foreign exchange reserves.-APP