Life insurance company () shocked the Andhra Pradesh government. The AP has issued a public statement saying that their organization has no further connection with the government scheme. The statement said that our agreement was terminated after the government withdrew Rs 2,000 crore of funds (premium paid by the beneficiaries) under the scheme. LIC entered into a Memorandum of Understanding with the Rural Poverty Alleviation Agency on 27 October 2009 for the Abhayahastham Scheme. However, LIC said in a statement that the agreement was terminated on November 3, 2021. “Following the termination of the Memorandum of Understanding (MoU), the funds held by LIC of India have been transferred to the Abhayahastham Scheme Nodal Agency SERC. The Rural Poverty Alleviation Agency is responsible for resolving all pending claims and future claims. Members of self-help groups who have paid their contribution to the Abhayahastham scheme and are over 60 years of age are eligible for this pension. However, if any of them are getting widow, disability, single and old age pension, in addition to this, they will also get this survival pension. The scheme was initiated by the late Chief Minister YS Rajasekhar Reddy after he came to power for the second time in 2009. Members of SHGs between the ages of 18-59 pay Rs. 365 per day per year and the entire amount is credited by the State Government. The scheme aims to provide a monthly pension of Rs.500 to Rs.3,000 after the age of 60 to those who pay the premium regularly.
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