I am happy to announce that I have been able to persuade LIC and GIC to offer two new services aimed at the middle class and the poor. The details of the new scheme will be announced separately but an illustration of how the scheme will work can be given. A person who subscribes to the scheme at age 30 for a period of 30 years by paying just Rs.250 per month will get a life pension of Rs.3,500 per month beginning at age 60. If the insured person dies before retirement, the spouse will be paid a substantial life-long pension. This scheme will meet a long-felt need amongst a large number of people for economic security beyond their working life.
Medical insurance is an area where the quality of the product can be greatly improved.
This ceiling is being enhanced to Rs.3 lakh with a single aggregate limit. Furthermore, the GIC will launch a new low price medicare policy appropriate to the vast majority of our people. Jeevan is the brand name for the LIC and we respect intellectual property rights. The policy will provide a cover upto Rs.5,000 per year with an annual premium of only Rs.70. What is more, a family of four comprising the husband, wife and two children below the age of 25, can pay an annual premium of Rs.240 and get cover for Rs.20,000 for the family as a whole.