The Madhya Pradesh Government has insured one crore school students for a premium of Re 1 under a scheme that covers accidental death, injuries as well as loss of books and bicycles, throughout the year irrespective of holiday or vacation.

Students of Classes I to XII in government schools will benefit from the scheme from August 21 this year to August 20 in 2009. In case of a student’s death or total disability, the family will get Rs 50,100. Permanent injury to one limb will qualify for Rs 40,000. The scheme also offers Rs 500 and Rs 1,000 respectively for loss of books and bicycles if the loss takes place at the time of the accident. The rider: they should not remain absent for more than 30 days at a stretch.

While the scheme has been in place for few years, the amount is the highest so far. Five years ago, the death compensation was Rs 10,000. Initially the scheme had offered benefits only for accidents that occurred on school premises or on way to school. The state had tied up with PSUs then, but now it has roped in private firms. Cholamandalam M S General Insurance Company, a JV between Murugappa Group and Mitsui Sumitomo Insurance Group of Japan, has successfully bid this time.