The Andhra Pradesh Government has asked Life Insurance Corporation (LIC) of India to settle the large number of pending claims pertaining to unorganised sector workers.
At present, 42,060 claims are pending with LIC for settlement.
Andhra Pradesh is implementing the convergence scheme under Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Aam Admi Bima Yojana (AABY).
The Centre and the State government have already released ₹190 crore and ₹126 crore respectively to LIC towards the premium for these schemes,
In a letter to MR Kumar, Chairman, LIC Andhra Pradesh, Chief Minister YS Jagan Mohan Reddy said: “Firstly, there is inordinate delay in extension of convergence insurance scheme and now there is delay in settling the claims.’’
The delay has caused “lot of hardships to the bereaved families of the deceased workers” besides “inconvenience to the Government,” the Chief Minister said.
The spread of Covid-19 has affected the unorganised workers and their families severely and they are facing a lot of hardships due to the lockdown for over a month. “The bereaved families are put to severe financial hardships due to inordinate delay by LIC in settling the claims,” Reddy said.
LIC should immediately settle the claims to help the affected families during the Covid-19 crisis,’’ he added.