Pension scheme fetches LIC over Rs 7,000 cr

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Mumbai | Published: August 14, 2015 12:09:40 AM

Life Insurance Corporation of India’s Varishtha Pension Bima Yojana has drawn positive response from senior citizens, helping the PSU major mop up over Rs 7,000 crore.

Life Insurance Corporation of India’s Varishtha Pension Bima Yojana has drawn positive response from senior citizens, helping the PSU major mop up over Rs 7,000 crore.

The scheme, launched in the Union Budget 2014-15, closes for subscription on Friday. LIC officials — attending the National Insurance Conclave-2015, organised by Dun & Bradstreet — also said that the insurer would launch its much-awaited Ulips by month-end.

LIC MD VK Sharma said: “In terms of total corpus, the Varishtha Pension Bima Yojana has collected over R7,000 crore. We have sold over 2.5 lakh policies. In the last few days, there has been a huge response from investors and we hope to have a much higher corpus when the scheme closes on Friday.”

During the previous term of the NDA government, LIC had launched a similar pension scheme, which had garnered around R6,000 crore. The scheme was revived in the previous Budget and was open from August 15, 2014, to August 14, 2015, for the benefit of citizens aged 60 years and above.

The Varishtha Pension Bima Yojana — a single-premium plan — offers a yield of 9.38% annually in assured returns and will provide monthly pension ranging from Rs 500 to Rs 5,000 per month to senior citizens. On the death of the pensioner, the  purchase price will be refunded to the nominee.  On LIC’s plans to launch Ulips, Sharma said: “We have got the approvals and will come with the product soon.” Focussing on the “digital revolution” Sharma said customers were a lot more informed today, largely due to the digital penetration.

Senior LIC officials said the company has asked agents to focus on non-single premium policies. “This will give regular income and help grow their business,” said an LIC official.

The scheme
* The Varishtha Pension Bima Yojana is a single-premium plan
* It offers a yield of 9.38% annually in assured returns
* It will provide monthly pension ranging from R500 to R5,000 pm to senior citizens
* On the death of pensioner, the  purchase price will be refunded to the nominee

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