The Life Insurance Company's Varishtha Bima Yojana has mopped up over Rs 95 crore (Rs 0.95 billion) within 48 hours of its launch on July 14.
At least 5,000 senior citizens have bought the immediate annuity plan. The LIC hopes to collect Rs 2,000 crore (Rs 20 billion) through this scheme by the end of the current fiscal.
The maximum number of policies had been sold in Maharashtra and Gujarat, LIC officials said.
The Varishtha Bima Yojana is targeted at those over 55 years and offers an assured return of 9 per cent. The pension payment will commence next month.
Over 30 per cent of the scheme's total sales have come from LIC's western zone, while the southern zone (Kerala and Tamil Nadu) accounted for about 21 per cent.
The south-central zone (Karnataka and Andhra Pradesh) weighed in with 19-20 per cent. While the north zone has not contributed much, the eastern zone - West Bengal and Bihar - has mopped up quite a number of policies, giving it a 17 per cent share.
"The response has been good considering that on day one we collected Rs 58 crore (Rs 0.58 billion) from about 3,400 individuals," said LIC managing director R N Bhardwaj. This gives an average investment of Rs 170,000 per policy.
LIC has allowed part investment in the plan by individuals. This means that both husband and wife can buy the scheme, but the monthly pension continues to be capped at Rs 2,000 for the family.
Further, policyholders who may not have the full sum can invest in phases while maintaining the overall ceiling of Rs 266,000.
Sales in the rural areas have been dull, though Prime Minister A B Vajpayee is keen to see sales pick up there. LIC officials pointed out that marketing in rural areas posed some difficulty.
The minimum investment has been capped at Rs 33,335, a sum the rural poor may not have in liquid funds.
Bhardwaj sees the maximum number of policies being bought by those in the 55-65 age bracket, especially those who have opted for early retirement.
"The removal of the upper age cap will have little impact on overall sales," he added.
