The last day for receiving quotations ended on Feb 20; the winner of the bidding process will be announced next week
National Payments Corporation of India (NPCI), the issuer ofRuPay cards, has received nine bids to provide accidentinsurance cover on the debit cards issued as a part of the Pradhan Mantri Jan Dhan Yojana.
The last day for receiving quotations ended on February 20. The winner of the bidding process will be announced in the next week. As part of the process, the insurance company will be providing a cover of Rs 1 lakh that can be claimed in case of death or permanent disability on cards issued under the scheme.
In the last round, HDFC Ergo had won the mandate to provide general insurance cover on RuPay cards. The company’s contract will end on March 31, 2015. Even this time, both public and private sector companies have participated in the bidding process.
The accidental insurance cover on the cards issued under the scheme so far will be active only if the card has been swiped before 45 days at any Merchant Establishment/ATM /e-commerce /Micro ATM/Business Correspondent of the bank. However, the government wants the no-swipe period to be extended to 180 days. As a result, this time around bids have been invited for a no-swipe period of 45, 90 and 180 days.
In the last round, NPCI had managed to retain the minimum one swipe before 45 days as the cost will balloon if the period is extended to 90 or 180 days. NPCI believes that this clause is necessary to keep the card active and encourage transactions.
“This time around, we will see the quotation for the all three cases and will send the minimum amount that has been quoted to the government for 90 and 180 days. If they are willing to pay the incremental price difference arising out of an extended tenure then we can look at increasing the no-swipe day else we will have to evaluate,” said a person familiar to the development.
Currently only NPCI pays the insurance premium which works out to be under Re 1.
A P Hota, managing director & chief executive officer of NPCI, said bids have been received and the process is likely to be completed next week.
At the end of January, a total of 12.54 crore accounts have been opened under the PMJDY scheme and a total of 11.07 crore RuPay cards have been issued.
SWIPE AND CLAIM
The accidental insurance cover on these cards issued so far will be active only if the card has been swiped before 45 days at any ATM of the bank
The govt wants the no-swipe period to be extended to 180 days
As a result, this time around bids have been invited for a no-swipe period of 45, 90 & 180 days
In the last round, NPCI had managed to retain the min one swipe before 45 days