Vajpayee to flag off pension scheme for senior citizens
New Delhi: Indian Prime Minister A B Vajpayee will today flag off a new insurance pension scheme for senior citizens, apart from a community-based health insurance cover for poor people. Varistha Pension Bima Yojana, which will be administered by Life Insurance Corporation (LIC), will provide lifetime pension at the assured rate of 9 per cent on the one-time lump sum premium. The minimum pension under the scheme will be Rs 250 per month and the maximum Rs 2,000 a month. The minimum premium has been fixed at Rs 33,335 and the maximum at Rs 2,77,490.

All citizens above 55 years of age can avail of the scheme, which was announced by Finance Minister Jaswant Singh in his 2003-04 budget speech, along with the health insurance scheme to ensure easy access to good health services to the less advantaged sections. The scheme provides for pension during the lifetime of the pensioner and in the event of death of the pensioner, the purchase price will be returned to the nominee. The difference between the actual yield earned by LIC on the funds invested under the scheme and the assured return of 9 per cent will be reimbursed to LIC annually by the central government.

The community-based universal health insurance scheme offers health protection and easy access to good health services to the disadvantaged sections. Under this scheme, a premium of Re 1 per day for an individual, Rs 1.50 per day for a family of five and Rs 2 per day for a family of seven will entitle eligibility to get reimbursement of medical expenses up to Rs 30,000 towards hospitalisation, a cover for death due to accident up to Rs 25,000 and compensation due to loss of earning at the rate of Rs 50 per day up to a maximum of 15 days.
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