Says LIC managing director N C Sharma: We have decided to discontinue the childrens plan, which assured returns of Rs 80 per Rs 1,000. But the scheme will be relaunched later in a different form.

LIC has been discontinuing many of its high-return schemes due to the falling yield on investments. Earlier this month it discontinued its Jeevan Sanchay and Childrens Growth schemes.

The life insurer, however, has recorded a tremendous growth in its business with sales of 1.78 crore policies as on 15 March 2002. The public sector giant has collected Rs 13,349 crore in the first premium income in the current year so far, as compared to about Rs 6,600 crore for the entire last year.