LIC may write insurance policy for women self-help groups

HYDERABAD/MUMBAI: The United Progressive Alliance government is looking at rolling out a micro-insurance scheme for women self-help groups to provide security to scores of poor women in the country. The scheme, perceived to be a populist measure, could feature in the Budget.

The Life Insurance Corporation (LIC) is understood to have been asked to work out the modalities of an insurance scheme aimed at providing life cover to these segments. The government will part-fund the premium obligations, implying that it may look at giving a 50% subsidy to the insurance company that offers the scheme. Officials involved in the exercise said the scheme could be offered by LIC and other insurers as well.

The premium works out to Rs 5 to Rs 6 for a sum assured of Rs 1,000. The sum assured for a life cover to this segment could vary from Rs 10,000 to Rs 50,000. So the premium payout would vary from Rs 50 to Rs 250 a year. The government is also looking at a service tax waiver on the premium amount as the product is targeted at low income groups.

The government is also understood to have held talks with LIC on extending the scope of the Bhagyalakshmi Insurance scheme introduced by the Karnataka government at the central level. The Bhagyalakshmi scheme is aimed at providing support to families below the poverty line with a girl child.

Sources said the government was looking at funding a scheme which would provide conditional transfer of funds to a poor family with a girl child. The various conditions subject to the fund transfer include compulsory school attendance and family planning by a parent.

The scheme was introduced in Karnataka a couple of years ago with the objective of improving the male-female ratio. Sources said the government had made inquiries on the kind of funding requirement to make such a scheme feasible.

In the past, successive government’s have announced insurance schemes for the poor, but none of these schemes were specifically targeted at women. Policy managers are assessing the efficacy of some of the schemes introduced in the past. Last year, for instance, the government announced the Aam Admi Bima Yojana to extend death and disability insurance cover to the unorganised sector.

The scheme is managed by LIC. Rashtriya Swasthya Bima Yojana is a health insurance scheme for below-poverty-line families and provides benefits of up to Rs 30,000. The premium outgo is to be borne by both the central and state governments. Earlier, the National Democratic Alliance government had announced two schemes through LIC — Varishta Bima Pension Yojna and Janshree Bima Yojna.

 

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