The Hindu : New Delhi News : MCD students to be insured

Online edition of India's National Newspaper
Thursday, Sep 23, 2004

New Delhi

New Delhi

MCD students to be insured

By Our Staff Reporter

NEW DELHI, SEPT. 22. More than 32 months after it was announced, students of the municipal primary schools would be insured in the next few months from all types of accidents resulting in either death or permanent disability.

As per the proposal, the civic body has following detailed negotiations with the insurance companies spread over two years decided to enter into an agreement with Oriental Insurance Company Limited for providing accidental coverage to its 9.5-lakh students. Under the insurance scheme, the students would be covered for all type of accidents in school, at home in the playground or anywhere in the country.

In return for a premium of about Rs. 9.4 lakhs, the insurance company would be giving Rs. 25,000 in the case of a death, permanent disability, loss of two limbs and one limb and one eye. The coverage for loss of one limb or one eye is Rs. 12,500.

The policy, introduced in MCD schools for the first time, would provide reimbursement of medical expenses to a maximum amount of Rs. 500 incurred by student for treatment in a recognised nursing home or hospital as in-patient or out-patient for injury sustained during the period of the insurance. However, for hospitalisation due to injuries occurred during school timings and in school premises the company would provide maximum of Rs. 5,000.

At the same time, officials said the limit for any accident involving over 200 children in each accident would be Rs. 50 lakhs, while the per annum accidental limit would be Rs. 1 crore.

The announcement for providing insurance coverage was first made in early 2002 by the then Standing Committee Chairman, Prithvi Raj Sawhney, during annual budget presentation. The announcement, however, was then forgotten by the Congress which came to power after the March 2002 civic body polls. The issue was seriously taken up last year by the MCD Education Committee Chairman, Farhad Suri, who initiated discussions with the insurance companies. During his budget presentation, the Municipal Commissioner, Rakesh Mehta kept a provision of Rs. 8 lakhs to provide insurance coverage to municipal students. "This amount has to be increased to Rs. 9.45 lakhs," the official said. Once the proposal is approved by the Standing Committee and House, the MCD would enter into an agreement with the Oriental Insurance.

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