LIC launches 'critical illness rider'

LIC of India launched on Thursday 'critical illness rider,' a new product under group insurance scheme, targeting primarily at employer-employee group. 

The rider could be attached to any of the existing group insurance polices under employer-employee groups -- group insurance, employees deposit link insurance, group gratuity and group leave encashment scheme -- on their scheme renewal date, LIC of India Chairman T S Vijayan told reporters at the launch function in Chennai.

He said the rider had been developed to cover eight major critical illness most relevant to India -- cancer, coronary artery surgery, heart attack, stroke, kidney failure, aorta, heart valve replacement and major burns.

A striking feature of the rider was that the benefit was payable upon detection of major critical illness and unlike Mediclaim, the proof of expenditure was not required here.

Vijayan said the premium of rider could be paid by employer or employees. The sum assured should be minimum of 20 per cent of basic sum assured and a maximum of 100 per cent, with upper ceiling on the rider sum assured of Rs 20 lakh for each member. It was available for employees between 18 and 64 years of age and pre-existing diseases were excluded.

Presenting the first two such policies to M/s Temenos India Pvt Ltd and M/s Kiran Pondy Chemicals Pvt Ltd, he said the new product was targeted to cover most of the existing over one lakh customers under group scheme.