LIC ties up with NGOs for covering lower strata

Aam Admi Bima Yojana provides insurance to earning members of rural landless families; LIC has covered 4.8 million beneficiaries so far

Life Insurance Corporation (LIC) has tied up with 31 non-governmental organisations (NGO) in Lucknow division for offering insurance cover to the bottom of the pyramid.

Aam Admi Bima Yojana is meant for providing insurance cover to heads/earning members of rural landless household. So far, LIC had provided free insurance cover to almost 4.8 million beneficiaries.

“With the help of NGOs, LIC has been able to reach out to 1,13,000 members under the Yojana,” LIC senior divisional manager Aditya Gupta told Business Standard . Lucknow division comprises 15 districts out of 75 districts in Uttar Pradesh.

Each division has been asked to rope in at least 25 NGOs to popularise the scheme and increase insurance cover net.

“We are ready to offer insurance cover to the urban poor, such as rickshaw pullers etc, provided the government provides us some official data about them,” he added.

Meanwhile, LIC had paid over Rs 28 crore towards 8,200 death claims, while Rs 2.65 crore was distributed as scholarships among 41,694 students.

Similarly, under Aam Admi Bima Yojana, LIC had paid Rs 73.35 lakh towards 198 death claims and Rs 24.28 lakh was distributed as scholarship among 4,046 students. The Yojana covers 48 occupational groups such as weavers, artisans, aanganwadi workers, women self help groups, tribal groups etc.