LIC to continue Varishtha Pension Scheme next yr

Life Insurance Corporation of India (LIC) will continue its Varishtha Pension Bima scheme next year also, though it had said that the interest rate and other terms and conditions will be decided by the government.

“The pension scheme will continue next year also,” LIC chairman S.B. Mathur told reporters on the sidelines of the sixth global conference of the actuaries, organised by the Federation of Indian Chambers of Commerce and Industry (Ficci). Earlier there were speculations on whether the Varishtha scheme would be discontinued in the wake of the Dada Dadi scheme. However, he said that the government had not yet decided whether it could be extended to more than one member of the family and continue to offer 9 per cent return.

Mathur said that LIC was in the process of withdrawing its single premium policy Bima Nivesh Triple cover, but would relaunch it next month. It will also launch a new unit-linked scheme on the lines of Bima Plus, in order to meet its target of Rs 11,300 crore in first premium income and retain over 90 per cent market share by March end. LIC targets to mop up about Rs 6,000 crore in premium from the pension scheme by the end of this fiscal.