Referring to the candid
comments of Mr Subburathinam, the premiums will have to be decided by the
company based on not only the mortality factor for the individual pensioner,
but also the mortality factor relating to the Supreme Court case.
It will be an
increasing term insurance cover. The premiums will be prohibitively high
considering that LIC’s contingent debt
towards pensioners is increasing at the
rate of about 20% p.a. on a compounded
basis.
- The more practical step for pensioner is to make out a will bequeathing all the dues from the Corporation to him/her including the arrears of pension that may be received in the event of a favourable judgment in the Supreme Court in the ongoing litigation, to the spouse. It is also better to have the will registered.
Greetings.
C H Mahadevan