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Our Bureau

Mumbai, Feb. 29 The Life Insurance Corporation of India (LIC) will be covering all women Self Help Groups (SHGs) that are credit-linked to banks.

A senior LIC official said the corporation had already received a proposal from the Government of Andhra Pradesh to insure 20 lakh women SHGs.

The corporation will be insuring these SHGs through the Janashree Bima Yojana, which offers life and permanent disability cover to people in 44 categories. Around one crore lives have been covered under the Janashree Bima Yojana this year, said the official

According to the Finance Minister, only 35,000 SHGs have been covered so far under this scheme.

“Considering the fact that there are over 30 lakh SHGs credit-linked to banks, I propose to single out this category for special attention. I propose to ask LIC to rapidly scale up the scheme and cover all women SHGs that are credit-linked to banks,” Mr P. Chidambaram, Finance Minister said in the Union Budget speech.

One-half of the premium will be subsidised through the Social Security Fund with LIC. The Government will contribute Rs 500 crore to the corpus of the fund. The corpus under LIC’s social security fund currently stands at Rs 700 crore and with the latest allocation it will stand increased, at Rs 1,200 crore.

The LIC official said that the interest on the fund would be used to subsidise the premium.

The Government also plans to make an additional contribution of Rs 1,000 crore under the LIC’s Aam Admi Bima Yojana for covering landless workers in 2008-09. The Government had placed Rs 1,500 crore with LIC for the scheme last year. LIC is expected to cover one crore poor households under this Yojana by September 30, 2008

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