The Hindu : Andhra Pradesh News : Civic body mulls insurance cover for entire population

Online edition of India's National Newspaper
Thursday, Sep 09, 2004

Andhra Pradesh

Andhra Pradesh

Civic body mulls insurance cover for entire population

By Shakeel M. Rasheed

RAJAHMUNDRY, SEPT. 8. Group insurance is old hat in the insurance business, but coverage for entire population?

The reform-driven Municipal Corporation of Rajahmundry (MCR) may just be notching up this rare distinction by having its whole population covered for personal accident and disability.

``We are working out the population figures for this scheme, which will be in place this year,'' the Municipal Commissioner, T.S.R. Anjaneyulu, told The Hindu on Wednesday.

Described as a trail-blazing effort in South India, this is the only second instance of the population of a city being brought under insurance cover, according official sources in the United India Insurance Company Limited, which has tied up with the MCR for this unusual venture. Indore is said to be the first city in the country to evolve such a scheme. "But it discontinued the policy after the first year,'' the sources added.

Two age groups

The MCR is looking at an estimated population of three lakhs as it weighs the option of the two age groups proposed for the scheme -- 5 to 70 and 18 to 70 -- and figures out the total number of people who fit into it for extending the insurance coverage.

A `nameless policy' in the insurance jargon, but christened as `Poura Samrakshana Bima Padhakam' by the MCR, it will have the municipal corporation certifying the cases eligible among its denizens for the insurance benefit and settling the claims with the insurance company.

The policy envisages coverage of the city population against death due to accident for Rs. 10,000 and loss of limb for Rs. 5,000.

The idea for the single insurance policy for the total population, the Municipal Commissioner pointed out, emanated from the concern of the general body of the MCR for victims of road accidents in the city and its inclination for providing relief.

Premium

With the insurance coverage proposed to be provided at Rs. 3.50 per individual, the policy may have the municipal corporation paying over Rs. 10 lakhs towards premium.

``For the policy to be operational, we will first have to deposit the entire premium amount with the insurance company. We have not decided yet on realising the premium from people,'' Dr. Anjaneyulu said.

All that it would require of people of this city to be eligible for the policy is having their names in the electoral rolls or on ration cards.

"This policy would be in addition to whatever insurance coverage that people may be having for themselves,'' the Municipal Commissioner further said.

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