Janshree Bima Yojana New insurance scheme for poor The Prime Minister, Mr. Atal Behari Vajpayee, while launching a new insurance scheme for the weaker sections of society at a function in New Delhi, said that the Life Insurance Corporation (LIC) had taken a number of measures to face the new situation in the insurance industry and expressed the hope that the resolve to provide effective competition to the private companies would not slacken. The new scheme, called the Janshree Bima Yojana, is targeted at the urban and rural poor who live below the poverty line or on the margin. The premium for the insurance cover for such persons would be Rs.200 a year of which 50% would be borne by the Central Govt. through the newly set up Social Security Fund. The balance premium would have to be paid by the individual or some nodal agency or the State Govt. The scheme provides for payment of Rs. 20,000 to the nominee in the event of death of the policyholder due to natural causes. In case of accidental death or permanent disability, the benefit will be enhanced to Rs.50,000 and in case of partial disability, the policy holder would get Rs.25,000. The scheme will be administered by the LIC and will be applicable to groups of at least 25 members. The groups will be identified and notified by the LIC in consultation with the designated nodal agency in specific areas. The nodal agencies could be panchayats, non-governmental organizations, self-help groups or any other institutionalized arrangement. Initial estimates suggest that some six crore people would be covered by the scheme. |
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