LIC for deeper penetration of low-cost insurance schemes in UP

Public sector insurer Life Insurance Corporation (LIC) aims at deeper penetration of its low cost insurance schemes in Uttar Pradesh.

LIC is concerned over rather low level of awareness among the masses towards such low premium and social security schemes, wherein the government provides 50 per cent premium subsidy from its corpus of about Rs 100 crore. Under the Aam Admi Bima Yojana, which is a low cost insurance scheme for people living below poverty line, LIC has so far settled 1,573 death claims cases amounting to over Rs 5.30 crore in UP.

LIC partners with non-government organisations (NGOs) for these social security schemes at the local level.

“Since UP is such a vast state, these schemes should have more penetration, but the level of awareness is rather missing for bringing a major chunk of beneficiaries under its net,” LIC senior divisional manager Mohd Azeezuddin told Business Standard here.

In the Lucknow and Faizabad regions, LIC has partnered with about 20 NGOs for these social security schemes.

Under the Aam Admi Bima Yojana, about 2.38 million people in 75 UP districts are covered and LIC aims at increasing the base to 3 million this year.

The company provides Janshree Bima Yojana coverage to self help groups (SHG), primitive tribal groups, anganbari workers, handicrafts’ artisans, Mahatma Gandhi Bima Bunkar Yojana, Khadi and Village Industries Commission and various other 45 groups.

Earlier, LIC has also already been engaged by the UP government for executing the annuity scheme under the new land acquisition policy of the state. Since annuity under the land acquisition policy is valid for 33 years, the government felt it would be difficult for the respective district magistrate office to ensure timely and regular payment of annuity to the farmers.