Calcutta, March 6: The Bank of India (BoI) has launched a health insurance plan — BoI National Swasthya Bima — in partnership with National Insurance Company for its 24 million account holders.

The bank has also inked a pact to form a life insurance venture with Dai-Ichi Mutual Life of Japan and Union Bank of India.

The health plan offers cashless facility and no cash reimbursement option. “The product will be offered to all our savings and current account and fixed deposit holders as an optional service which they can avail of by paying a small premium,” Bank of India chairman and managing director M. Balachandran said.

“The product is tailor-made for BoI customers and deposit account holders can buy a health cover ranging from Rs 50,000 to Rs 5 lakh according to their needs,” said V. Ramaswamy, chairman of National Insurance Company.

“Being a group insurance product, the annual premium charges of BoI National Swasthya Bima is cheaper than our regular mediclaim policies,” he added.

Moreover, a Bank of India customer can also buy this health plan for one’s family.

“The plan covers up to four members, including spouse and two children,” Ramaswamy said.

However, the maximum age for buying this plan is 65 years. While renewals are permitted till the age of 80, a fresh policy can be bought beyond 65 years of age only at the premium rate fixed by National Insurance.

Ramaswamy said the cover also included health check-up after three continuous claim-free years at 1 per cent of the sum assured.

The policy will cover pre- existing diseases from the fourth year onwards.

Balachandran said the bank intended to offer the product as a micro insurance scheme through its rural branches. The bank has 2,800 branches.

National Insurance has a strategic tie-up with BoI to distribute its non-life insurance products through its branches since 1993.

The Bank of India tie-up last year fetched a premium amount of Rs 35 crore for National Insurance and the target for 2006-07 was set at Rs 60 crore. Ramaswamy put the targeted total premium income of National Insurance in 2006-07 at Rs 3,800 crore.