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(April 1999)

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Prime Minister dedicates Rajarajeshwari &
Bhagyashree insurance schemes to the Nation

The Prime Minister, Shri Atal Bihari Vajpayee today dedicated two Insurance Schemes Rajarajeshwari & Bhagyashree to the nation with an objective of providing safety net to the destitute mothers, sisters and daughters. In a function held in the capital today the Prime Minister urged the state governments to participate in a bigger way for the successful implementation and larger coverage of its residence under these schemes.

On August 15^th, last year the Prime Minister had announced that his government would launch these two schemes – the Bhagyashree Child Welfare Policy and the Rajarajeshwari Mahila Kalyan Bima Yojna. While the first provides fund for girls to complete their education if they lost either of their parents, the second provides income to women who have lost their husbands or who became disabled. These two schemes which became operational since last Diwali have been able to sell one-lakh policies so far.

Speaking on the occasion the Prime Minister said that he is in full agreement with the Noble laureate, Shri Amartya Sen that more investment is needed in social sector and that education for all should be the first priority of every developing country. While the states have to increase the `supply’ of education, the Bhagyashree scheme will increase the `demand’ for education, he said. Shri Vajpayee also urged the states to be prepared to meet this `demand’ by suitably upgrading their educational infrastructure. He expressed hope that the Bhagyashree scheme will provide money to the girl child to continue their education and the Rajarajeshwari Mahila Kalyan Yojna would provide some financial succor and independence to the women folk. He urged state governments, Gram Panchayats and Municipalities to participate in a larger way and ensure maximum coverage of their residents. The Prime Minister also said that insuring one crore girls will cost only Rs.8 to 14 crores a year and insuring one crore women will cost only Rs.5 to 6 crore, which every state can afford.

Complementing the existing Insurance companies for their contributions in providing risk cover to all sections of the society the Prime Minister expressed hope that the new Indian insurance companies will not only compete with the existing companies but also will reach the poorest in providing risk coverage.

Bhagyashree Child Welfare Policy is a cover meant for girl children in the age group of 0-18 years whose parents’ age does not exceed 60 years. This cover provides relief to insured girl in the case of death of either of the parents or both, arising out of accident. Amounts varying from Rs.1200 per annum to Rs.2400 per annum will be payable to the surviving parent or guardian to look after the child and her education. On attaining the age of 18 years, the balance amount will be paid to the girl child, which will help her settle down in life. In the event of the death of the girl child, before attaining the age of 18 years, the balance amount standing to her credit will be paid to surviving parent/guardian. The premium is just Rs.15 per annum per child, and varies from Rs.8.25 to Rs.14.25 if the insurance cover is taken in groups.

Rajrajeshwari Mahila Kalyan Bima Yojana is a scheme intended to provide economic security to women. All sections of women in the age group of 10 - 75 years, irrespective of their income, occupation or vocation, can be covered under the policy. There is a basic cover of Rs. 25,000 on payment of a premium of Rs.15 per annum per woman for permanent total disablement or loss of two-limbs/both eyes/one limb and one eye. An insurance cover of Rs.12, 500 will be available for loss of only one limb or one eye. In the case of accidental death of the husband, a compensation of Rs.25, 000 is payable to the wife. In the case of unmarried woman, compensation on the accidental death of the insured will be payable to her nominee or legal heir. There is an additional cover which could be procured on payment of an additional premium of Rs.8 to cover temporary total disablement, expenses incurred for legal divorce proceedings and loss/damage to household effects, on account of fire, flood, riot, terrorism etc. The cover also includes death during the childbirth at hospital and surgical operation such as sterilization, cesarean, hysterectomy and removal of breast due to cancer provided that such death occurs within seven days from the date of operation. The premium under the policy will range only from Rs.4.25 to Rs.6 per annum per woman in case of large groups and a further discount on this ranging from 5% to 20% will be given as a long-term discount depending upon the period for which insurance has been taken.

Speaking on the occasion the Union Finance Minister, Shri Yashwant Sinha expressed hope that the General Insurance Corporation and its subsidiaries will have the energy and strength to face newer challenges and said that all efforts should be made to reach the remotest villages with these new schemes. The Minister of State for Finance, Shri K.M.R. Janarthanan and other senior officials of the Ministry and GIC were present on the occasion.