On Monday the state run lender Dena Bank has signed an agreement with LIC to provide an insurance cover to its saving account holders under the Prime Minister’s Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) scheme.

Under the MoU, LIC will give a life cover of Rs 2 lakh in case of death of the insured person at a nominal premium of Rs 330 per annum.

Account holders in the age group of 18 to 50 years can avail of the product. People who join the scheme before completing 50 years can continue to have the risk of life cover up to the age of 55 years subject to the payment of premium, persons join the.

The scheme will come into force from June 1, 2015. The bank customers can join the scheme between June 1, 2015 to May 31, 2016.

“It is a very important step towards meeting the government financial inclusion plan. This will increase the insurance penetration,” Dena Bank Chairman and Managing Director Ashwani Kumar said.

LIC Chairman S K Roy said, “This represents version two of financial inclusion of India.