Chennai: Life Insurance Corporation of India (LIC) has introduced a special term assurance scheme exclusively for the depositors of Indian Overseas Bank (IOB) called ‘IOB Chiranjeevi Bima Yojana.’ The policy covers only the death risk and renewable annually.

“The policy is very attractive — price and procedure wise,” says LIC chairman S B Mathur. “As per the scheme, any healthy IOB depositor aged between 18 and 54 years can take this policy after submitting a consent letter for debiting his / her account towards premium and a declaration about his / her good health.”

For those in the age band of 18-44 the premium is Rs 325 and for persons between 45-54 it is Rs 575. The coverage is for Rs 1 lakh in case of a natural death and Rs 2 lakh for an accidental death.

Apart from those aged over 54 years, the scheme excludes depositors suffering / suffered from critical illnesses like cancer, heart disease, kidney failure, brain stroke, paralysis and AIDS, and those who have undergone a major organ transplantation like heart, lung, liver or kidney.

For LIC this offers a good opportunity to garner good business as IOB has around 1.5 crore depositors spread over 1,400 branches and 242 extension counters. The insurer will not be paying any fee or commission to IOB.

An IOB official says the bank hopes to generate an Rs 100-crore additional deposit because of the new insurance policy.