Mumbai: LIC has launched a micro insurance product targeted to benefit the economically underprivileged segments of society. The policy – Jeevan Madhur – launched by President A P J Abdul Kalam, will cover individuals in the 18-60 age group.

The policy offers a minimum assured sum of Rs 5,000 and a maximum of Rs 30,000 and the premium can be paid weekly, fortnightly, monthly, quarterly, half-yearly and yearly.

The minimum premium is fixed at Rs25 per week, Rs50 for fortnightly, Rs100 per month and Rs250 for periods above. The policy has a tenure of 5 to 15 years.

The likely assured sum on maturity on a Rs1,200 per annum premium for a 15-year-term would be Rs18,396.

LIC will market the plan through micro insurance agencies.

"LIC may consider increasing the total policy holders of the corporation from the existing 190 million to 380 million within the next five years by large scale penetration into the rural and unorganised sector," the president said after launching a micro-insurance product of LIC on its golden jubilee celebrations in Mumbai.

The paperless scheme for policy documents, called dematerialisation, will enable easy storage of policies by the policy holders, the president said.

"There may be a need for the change of certain provisions in the Insurance Act, both at the centre and the states. I am sure the government may consider implementation of such changes for introducing dematerialised policies," he said.

LIC chairman T S Vijayan said he would examine the legalese of the suggestion since policy document is a legal document.

The president also suggested that LIC set up an Institute of Insurance Management, take up leadership role in PURA projects, establish village knowledge centres and expand its services to more than two crore PIOs by opening more branches overseas.