The Government's Jeevan Aadhar scheme issued by life Insurance Corporation (lIC) has come under challenge in the Supreme Court. A handicapped dependant under the scheme has pointed out that despite having paid full premium, persons, like him, have to wait for the annuity/pension till the death of the policy holder on whom they are dependent.
Moved by the plight faced by handicapped persons (including mentally handicapped) under the scheme, the Bench of Chief Justice Dipak Misra, Justices AM Khanwilkar and DY Chandrachud issued notice to the Ministry of Finance and the lIC for their response.
The Bench said the only issue under consideration is whether payment of annuity/pension under the scheme can be given during the lifetime of the guardian who is the policy holder. The issue before the Court was brought by Uttar Pradesh resident Ravi Agarwal who is physically handicapped.
His parents had taken the Jeevan Aadhaar policy and had completed payment of premium from time to time. On expiry of the scheme, when Agarwal approached the lIC office for annuity/pension, it was denied to him on account of a circular issed by the Central Board of Direct Taxes (CBDT) on January 24, 2008. As per the circular, the benefit under the scheme cannot be paid to handicapped dependants till the death of the policy holder.
Clause (a) of Sub-section 2 of Section 88DD of the Income Tax Act states that payment of annuity or lump sum amount for the benefit of a dependent, being a person with disability, will be in the event of the death of the individual. The scheme of Jeevan Aadhar was framed under this provision.
The petition alleged discrimination against handicapped persons as beneficiaries under other schemes get entitled for full payment on expiry of the said scheme. Even the Insurance Regulatory Development Authority and Chief Commissioner for Persons with Disability failed to provide any relief to Agarwal.