Bima Gold Plan, Life Insurance Corporation of India (LIC), world's largest life insurer, launched new Bima Gold.

"We have done value addition to our earlier version of close ended Bima Gold scheme which roped in more than one crore investors in the period of September 1, 2005 to March 31, 2006," LIC senior division manager Prakash Chand told reporters here.

The new version is open ended and gives additional benefit of extended cover and lower premium rates as compared to the earlier plan, he said.

A new feature of 50 per cent life cover during extended term which is half of the policy term shall commence immediately on the expiry of the policy term, subject to a minimum of 75 years, he said.

Besides in built auto cover has been introduced so that risk cover will remain for the next two years from the date of first unpaid premium, Chand said.

Elaborating on the launched plan, he said it is positioned as a low cost policy which caters to the need of risk coverage with liquidity in shape of assured money back at an interval of every four years.

The plan is open for the age group of 14 years to a maximum age of 57 with a fixed term of 12, 16 and 20 years, he said.

It also carries income tax rebate under section 80C allowed up to Rs 1 lakh actual premium paid during the financial year.

During the first four months, the insurer has earned first premium income to the tune of Rs 11,493 crore as against Rs 4,41 5 crore registering a growth of 260 per cent.

The company has a market share of 78.5 per cent with a customer base of over 18 crore.

The New Bima Gold is a money back plan for 12, 16 and 20 years fixed duration. The survival benefits are payable at the end of every four years while the policy is in force. On maturity, total premiums paid, plus loyalty addition less survival benefits and premiums of extras and riders, are payable to the policyholders.

The risk cover equal to 50 per cent of the basic sum assured continues during the extended period, which is half of the original term chosen under the plan.

The plan can be had for a minimum sum assured of Rs 50,000 while there is no ceiling on the maximum sum assured

For age 35 annual premium for sum assured of Rs.1,00,000/- is

Rs.4,160/- .

Loan facility against the assignment of policy is available during original

term of the policy as per policy conditions.

Corporation expects yet another bumper response from the policyholders

as the premium rates and benefits are very competitive.