Telangana Cabinet clears major life insurance scheme for farmers

Our Bureau | | Updated on: May 27, 2018

LIC to implement plan; State Govt allocates ₹1,000 cr for premium

Life Insurance Corporation of India (LIC) will implement a massive insurance scheme for farmers in Telangana. Farmers in the age group of 18 to 59 years in Telangana will get an insurance cover of ₹5 lakh. The scheme will commence on August 15.

Officials of the Agriculture Department will prepare a list of eligible farmers, forward it to LIC and pay the premium. The farmers will get the policy documents after August 15. The State Cabinet on Sunday cleared the proposal to introduce the scheme.

LIC has been entrusted with the task of providing the cover, which entails a premium of ₹2,271 per farmer. The State government will pay the premium on behalf of eligible farmers. The scheme will get an allocation of ₹1,000 crore in the State Budget.

Those in the age group of 18 to 59 by August 15 will be eligible for the scheme. The farmer whose life is insured can propose the nominee of his choice to receive the proceeds in case of his or her death.

“Irrespective of the reason due to which a farmer dies, including natural death, the insured amount of ₹5 lakh shall be paid to the nominee proposed by the insured farmer within ten days of the claim,” Telangana Chief Minister K Chandrasekhara Rao said.

“The farmer need not pay a single rupee for premium. Funds required for the payment of aggregate premium shall be budgeted. The total premium will be credited to the implementing agency by August 1,” he said.

“The premium would have been less if it were accident insurance only, instead of life insurance. Yet, we have decided to go for life insurance to provide financial support to the kin of deceased farmers,” the Chief Minister said.

‘‘Small and marginal farmers in Telangana account for 93 per cent (of about 58 lakh farmers). There are 18 lakh farmers whose holdings are less than one acre. Their livelihood is entirely agriculture and farming and for any reason when the farmer dies his family will have to face a lot of hardships,” a government release, quoting him said.

Published on May 27, 2018
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