The Hindu : Front Page : LIC to administer new scheme for the girl child

Online edition of India's National Newspaper
Wednesday, Apr 26, 2006

Front Page

Front Page

LIC to administer new scheme for the girl child

Staff Reporter

The aim is to provide financial security with accumulated deposit

FOR THE GIRL CHILD: Deputy Chief Minister B.S. Yediyurappa (left), Chief Minister H.D. Kumaraswamy, and Additional Chief Secretary Malathi Das announcing the details of the scheme in Bangalore on Tuesday. — Photo: K. Gopinathan

BANGALORE: The Bhagyalakshmi Scheme for the girl child, aimed at fighting female foeticide and infanticide, will be administered by the Life Insurance Corporation (LIC) of India, Deputy Chief Minister B.S. Yediyurappa announced here on Tuesday.

Mr. Yediyurappa, who also holds the Finance portfolio, has set aside Rs. 234 crore for the scheme in this year. Under the scheme, the Government will deposit Rs. 10,000 for every girl child born after April 1, 2006, in a family living below the poverty line.

The tie-up with LIC is the first of its kind in the country, and it can only benefit the girl when she turns 18, apart from a few bonuses for the parents. Initially, the objective is to provide financial security with the accumulated value of the deposit, apart from ensuring continued education and discouraging child labour and child marriage. The scheme covers two girl children of a family living below the poverty line.

LIC has customised the scheme to offer long-term pooled and earmarked accounts for educational scholarship for the girl, without any additional cost. The insurance benefits are considerable: low cost subsidised life insurance through Janashree Bima Yojana which also covers the earning parent from the time the girl child is registered. The premium is Rs. 200 per annum, and the LIC Social Security Fund bears Rs. 100, which is recovered from the child's interest account. An insurance amount of Rs. 20,000 is payable in case of death of the earning parent. The financial support for education is in the form of scholarship under Shiksha Sahayog Yojana paid from the Social Security Fund of LIC; the scholarship amount is Rs. 100 per month, paid quarterly for four years of study from Class 9 to Class 12. There is no need to pay premium. For the second girl child under the programme, the Janashree premium will not be deducted, as the parent is covered, and the second child will be eligible for scholarship.

The health benefits have the scope to cover critical illnesses affecting heart, kidneys, physical disablement owing to accident, after the child reaches a certain age.

Though the scheme came into effect on April 1 2006, the Government has not yet identified the girl babies born since then. However, Commissioner for Women and Child Welfare C.R. Chikkamath says that there have been about 10,000 births so far this month, and once the eligible girl children are identified, the scheme will be implemented with retrospective effect.

Mr. Yediyurappa said the Government was yet to decide on whether the fund would revert to the Government in case of the child's death.

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