LIC launches second micro insurance product

The Life Insurance Corporation of India (LIC) today launched it's second micro insurance product - 'Jeevan Mangal' aimed at lower income groups, as well as those living in remote rural areas.

"This policy, a term assurance plan with return of premiums paid on maturity, will be sold only by Self Help Group (SHG) and NGOs," LIC Zonal (South) Manager V K Sharma told reporters here. 

"We have set a target of selling a minimum of five lakh policies during the first year," he added. 

On the benefits of the product, Sharma said the micro insurance plan, would offer return of premium on maturity providing for sum assured (risk cover) ranging from minimum of Rs 10,000 to maximum of Rs 50,000 with an optional accident benefit rider on death due to accident.

He said flexible modes of premium payment like weekly, fortnightly, monthly, quarterly, half-yearly and annual have been provided. There is also a single premium payment option, he said.

Meanwhile, LIC's Coimbatore division said they had been given a target of 40,000 'Jeevan Mangal' policies for the year.    

K G Somasundaram, Senior Divisional Manager Coimbatore Division said the plan was meant for poor people, daily wage workers, people working in unorganised sector and members of SHG.    

The risk cover was for 10 years at a very minimum premium of Rs 15 per week, he added.