LIC seeks Rs 10 cr from MP for scribes

The Life Insurance Corporation of India (LIC) has finalised the blueprint for a pension/social security scheme exclusively for journalists in Madhya Pradesh and Chhattisgarh.

The scheme, the first of its kind in MP, is said to be a brainchild of Chief Minister Babulal Gaur. He had recently visited some senior journalists critically or terminally ill. Most of them are now jobless. Earlier, the state government had mooted a similar scheme in 1997.

Though officials of the state department of public relations were not available for comment, LIC and government sources said the insurance major had sought Rs 10 crore as "past contribution" for the scheme. The cash-strapped MP government was finding it difficult to sanction the amount, a source said.

"The situation for young and up-and-coming journalists will be bad when they retire, if the present situation continues. There should be a pension product for them," said S N Bhattacharya, regional manager (pensions and group schemes).

"We will be able to launch the scheme once the state government spells out its contribution. I am also waiting for Chhattisgarh Chief Minister Raman Singh's nod," said Bhattacharya.

Under the scheme, the MP government has "tentatively" proposed to cover 4,000 journalists who are from the accredited category or "shramjivi patrakar" (those who should be on company rolls but are not shown thus).

The Chhattisgarh government, meanwhile, is about to finalise a list of 452 journalists by considering their average monthly salary of Rs 3,000 per month.

According to sources in the LIC, the Chhattisgarh government has agreed to sanction initially Rs 4.80 crore and an annual contribution of 5.21 per cent of the average wage bill of journalists. "In the case of Madhya Pradesh, the contribution is expected to be around 5.78 per cent," an LIC source said.

The average age for a journalist to join the scheme is 38 years and he/she would be presumed to have put in nine years of service. The journalists will get a monthly pension of Rs 2,000 per month.

The minimum contribution for the scheme is Rs 50, while the maximum is Rs 300 per month, depending on the journalist's age. LIC officials said the MP government was yet to finalise the details.

The nominees of the journalists will have a number of options to choose from, just like the other pension schemes of the corporation.

The nominees will receive a compensation of Rs 2 lakh in case of death. They will be entitled to other accidental benefits or riders in the case of critical illnesses.

"The viability of the pension scheme will hinge on the contribution made by the newcomers. Otherwise, the LIC or any insurance company cannot manage the funds. The scheme may also fail if the existing government is voted out of power," Bhattacharya explained.