FM relaxes norms of life insurance policies for disabled

NEW DELHI: Finance Minister P Chidambaram today relaxed eligibility condition for people suffering from any disability by increasing the premium paid for life insurance policies to 15 per cent.

"I propose to relax the eligibility conditions of life insurance policies for persons suffering from disability or certain ailments by increasing the permissible premium rate from 10 percent to 15 percent of the sum assured," he said in his Budget speech.

This relaxation shall be available in respect of policies issued on or after April 1, 2013.

Currently the government allows a deduction on premium paid on life insurance policy only if the annual premium paid is less than 10 per cent of the sum assured.

He added, "The government is committed to provide support to persons with disabilities. I propose to allocate a sum of Rs 110 crore to the Department of Disability Affairs for the ADIP Scheme in 2013-14, as against the RE of Rs 75 crore in the current year."

ADIP Scheme or Assistance to Disabled Persons for purchase of Aids and Appliances, the main objective of the scheme is to assist the needy disabled person in procuring aids and appliances that can promote rehabilitation and enhance their economic potential.

Meanwhile, the contributions made to the Central Government Health Scheme are eligible for deduction under section 80D of the Income-tax Act.

"I propose to extend the same benefit to similar schemes of the Central Government and State Governments," he said. PTI