LIC cannot assure maturity amount
Chief Minister Yeddyurappa’s pet scheme, Bhagyalakshmi, has landed in trouble. The Life Insurance Corporation of India (LIC) has informed the State Government that it cannot assure the maturity amount (Rs 1,00,097 lakh and Rs 1,00,052 in two categories) to the beneficiaries from the coming year.
The reason cited by the LIC is that the premium amount being paid by the Government is less, according to official sources.
Under the scheme, the Government provides insurance cover to girl children soon after the birth (one year after the birth). The first two girl children in a family will get the benefit. The Government pays a premium amount of Rs 19,350 for the first child and Rs 18,350 for the second one. The first child will get an assured maturity amount of Rs 1,00,097 lakh and Rs 1,00,052 lakh to the second after attaining 18 years of age. These children can also avail themselves educational loan and medical facilities using these bonds.
The LIC in a recent letter to the department of Women and Child Welfare, has said that it cannot declare the maturity amount in the bond in future “in the present circumstances.” “But the LIC has not elaborated the reason for its decision in the letter. It is clear from the letter that the LIC wants the Government to increase the premium amount and that it is incurring loss. The Corporation may raise the issue while renewing the contract with the Government for the scheme,” sources said.
The LIC, official sources said, is not showing much enthusiasm in implementing the scheme because of this reason. As a result, the Government has not been able to distribute a single bond so far this year. The Government on its part has identified 77,404 beneficiaries this year and released Rs 125.99 crore to the LIC towards the premium amount. But the LIC is yet to supply the insurance bonds.
CM Yeddyurappa while reviewing the scheme recently turned furious over the delay and directed the officials to issue notice to the LIC, if necessary. When contacted, Women and Chief Development Minister P M Narendraswamy said he is not aware of the LIC’s letter. “The LIC is the most-trusted company. So, we selected it for implementing the scheme. If they cannot guarantee the maturity amount in future, we will look for an insurance company that will agree to our conditions,” he stated.
* LIC says it cannot assure the maturity amount to the beneficiaries at the present premium rate
* Wants the Government to increase the premium amount in future
* Government has not distributed a single insurance bond this year
*LIC yet to supply bonds to the Government