LIC scheme for SHG members

People living below the poverty line in rural areas will now get insurance cover. The Life Insurance Corporation (LIC), in collaboration with Malaprabha Grameen Bank, launched the 'Jeevana Kshema' policy for members of self-help groups from November 1.

Addressing a joint press conference, LIC divisional manager A K Kambale and Malaprabha Grameena Bank chairman B S Surendra told reporters in Dharwad the scheme will help 8,000 people living below the poverty line in rural areas in the first phase.

The Malaprabha Grameena Bank has 243 branches in Dharwad, Belgaum, Gadag and Haveri districts. The SHGs attached to these branches will be covered under the scheme.

The premium amount for each member will be Rs 200 per annum and of the amount Rs 100 will be paid by the Central government from a social security fund. The Malaprabha Bank will act as a nodal agency between the policy holders and the LIC.

The policy holder should be in the age group of 18-59 years and a member of SHG. The relief is Rs 20,000 in case of the policyholder's natural death, Rs 50,000 in case of accidental death, Rs 50,000 in case of total disability after accident and Rs 25,000 for partial disability.

The policy holder need not undergo a medical examination. To popularise the scheme, the LIC has come forward to offer scholarships to children of the policy holders, Kambale said. Surendra said that there are 8,000 credit-linked SHG members and 1,320 members volunteered to be covered.