IOB extends life insurance cover to SHG members

Chennai, July 29: The Indian Overseas Bank (IOB) will extend life insurance cover to all women of Self Help Groups (SHGs) under its fold under a new scheme.

The bank tied up with the Life Insurance Corporation of India (LIC) to extend the facility initially to the members of SHGs credit linked by it and to cover all SHG members at a later stage.

Explaining the features of the scheme here today, the IOB senior officials said, ''the willing members have to contribute Rs 100 towards 50 per cent of the premium and the balance will be paid out of the Social Security Fund instituted by the Centre.'' For an additional premium of Rs 40, the spouse of the SHG member would be covered for Rs 10,000. The period of cover would be one year from the date of the receipt of premium.

The other benefits to the insured and the family members include a sanction of Rs 30,000 for the nominee in case of natural death of the insured, Rs 75,000 for death of the nominee in accident, Rs 75,000 in case of total permanent disability due to an accident and the insured member would be eligible for Rs 37,500 in case of partial permanent disability.

The members' wards studying between standards IX and XII were eligible for scholarships of Rs 300 per quarter, provided they pass the final examination.

Persons in the age group of 15 and 59 years would also be covered under the scheme, officials added.

UNI