DEAR ALL,
I draw your attention to LIC CO circular calling for options for increased cover upto Rs 50 lks.
I wonder whether, by exercising the option, pensioners are likely to get into a trap from which they will find themselves difficult to wriggle out.On the one hand they may have to pay a higher premium for the increased cover,On the other, those who are transitioning to higher slabs of age will have to bear the further burden and once exercised, the option cannot be revoked .
Further there is also a hidden risk because ,by exercising the option, the regular pensioners are placing the potential family pensioners at the risk of having to bear a huge burden of premium under Table A which is about three times that under Table B which they avail as dependants of regular pensioners.When family pension drops by 70% on the death of a regular pensioner,to pay three times the existing premium will be too much to bear for the family pensioner.
The exercise of increased-cover option may be beneficial to pensioners only if the subsidised cover is enhanced substantially in tandem with the increase in maximum insurance cover.Otherwise,this option may perhaps benefit only those members who are presently compelled to undertake high cost treatments beyond the present ceilings.
Perhaps this may help the insurance provider New India Assurance Co o show growth in their mediclaim premium, with substantial additional burden for pensioners and no additional burden to LIC.
Pensioners' Associations need to take up the matter with the LIC Management to first increase the subsidy for Mediclaim Premium along with providing option for increase in maximum cover.
Greetings.
C H Mahadevan
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