September 2006

LIC’s “Jeevan Madhur” – a Micro Insurance Product was launched today in the esteemed presence of Dr. A.P.J. Abdul Kalam, President of India. President was kind enough to hand over policy bonds to the first two policyholders and four NGOs in a colourful function held in Vigyan Bhavan, New Delhi. The function was presided over by Shri P. Chidambaram, Hon’ble Union Minister for Finance and attended by Mr. S.S.Palanimanickam Hon’ble Union Minister of State for Revenue. Micro Insurance Product is targeted to cover the low income group and especially those who have no fixed and stable income.

“Jeevan Madhur”, is available to both male & female without any medical examination and is a simple saving related life insurance plan covering individuals in the age group of 18 to 60 years. Minimum sum assured under the plan is Rs. 5000 and maximum sum assured is Rs. 30000. Mode of payment of premium can be even weekly/fortnightly in addition to other regular modes to suit the needs of people with low income. Minimum premium is Rs. 25/- per week, Rs. 50/- per fortnight, Rs. 100/- per month which is expected to be well within reach of the targeted group. The term of policy ranges between 5 to 15 years.

The maturity benefit is in proportion to the amount of premium, term of policy and age of the life assured. The policy, if kept in full force, is entitled to the simple reversionary bonuses depending upon Corporation’s experience. Accident benefit is also applicable as per terms and conditions of the policy. After premiums are paid for 2 years, Auto Cover facility i.e., continuance of cover even in case of inability to pay premium up to 2 years from the date of First Unpaid premium is available to take care of contingencies and uncertainties of income.

At present, the plan is being marketed through specified Micro Insurance Agencies only. Shri T.S. Vijayan, Chairman LIC speaking on this occasion said that this will enhance the penetration of Life Insurance in the country and extend the cover to the persons who need it most.