Goverment to Link Insurance Scheme with PMJDY

The 21 crores Prime Minister Jan Dhan Yojana (PMJDY) bank accounts and Aadhaar will be used to ensure that poor get cashless treatment of up to Rs 1 lakh at hospitals under an insurance scheme announced in the budget. Insurance scheme will be linked to PMJDY from May 2016.

This will be the first product to be launched on what the government is aiming at social security platform.

Any Below Poverty Line (BPL) person going to a hospital can identify himself by Aadhaar number and get cashless treatment of up to Rs 1 lakh through the PMJDY account. He will not have to dip into his meager savings.

As of now, average balance in a PMJDY account stood at Rs 1,700. The number of zero balance accounts has dropped to 27%.

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