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PM to launch LIC pension scheme today

By Our Special Correspondent

NEW DELHI JULY 13. After a last-minute postponement in June, the old-age pension scheme of the Life Insurance Corporation (LIC) would be launched tomorrow by the Prime Minister, Atal Behari Vajpayee. Also, the universal health insurance scheme, which would provide medical cover for a premium of Re.1 a day, would become operational from tomorrow.

The old-age pension scheme, called Varistha Pension Bima Yojana, would provide pension at the rate of nine per cent per annum to citizens above 55 years of age.

Under the scheme, a minimum pension of Rs. 250 and a maximum of Rs. 2,000 a month would be payable during the life-time of the pensioner and in the event of his death, the original investment would be returned to the nominee. The premium for the scheme is payable in lump sum at the beginning — Rs. 33,335 being the minimum and Rs. 2,77,490 the maximum. The difference between the actual yield earned by the LIC on the funds invested under the scheme and the assured return of nine per cent would be reimbursed to the Corporation by the Government.

The universal health scheme, on the other hand, is a community-based scheme. This would offer health protection and easy access to good medical services to the less privileged.

The premium of Re. 1 a day for an individual, Rs. 1.50 a day for a family of five and Rs. 2 a day for a family of seven would entitle reimbursement of medical expenses up to Rs. 30,000 towards hospitalisation.

Besides, there would be a cover for death due to accident up to Rs. 25,000 and compensation due to loss of earning at the rate of Rs. 50 a day up to a maximum of 15 days.

For below the poverty line families, the Government would contribute Rs. 100 a year towards their annual premium. The policy would be applicable to groups consisting of minimum of 100 families.

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