KARACHI, March 2: The National Bank of Pakistan, the only public sector bank, is offering insurance cover to its more than half a million PLS account holders against terrorism, accidents, and natural calamities.

In the event of death, the compensation is Rs100,000 and in case of injury it ranges from Rs25,000 to Rs50,000. There is no compensation for natural death.

Launched in collaboration with the American Life Insurance Company (ALICO), a foreign private life insurance entity, the account holder is being asked to give his consent on a printed form. The policy involves a monthly premium of Rs20 (Rs140 a year), which will be deducted from his account.

Large banners outside the selected branches of the NBP announce the insurance cover scheme for the account holders. At present, a small number of branches have been designated for the scheme but officials say that it will soon be extended to all branches after ascertaining the response.

So far, the response has been more than encouraging but the officials hinted that there would soon be a riding clause in the scheme that would make it obligatory to the account holders to maintain a minimum balance of Rs5,000. Most of the fixed wage earners may then opt for the scheme.

The bank’s officials say that out of Rs20 monthly premium, the bank charge is only one rupee which will be collected and given in aid of the earthquake affected people. The ALICO will get Rs19 per month from which it would make payments for claims of death and injury.

The bank and the insurance company are expected to carry out a survey to verify the death claim. Sources in private insurance companies say that a few other banks including foreign banks are offering insurance products to their customers.