CHANDIGARH - More than 10,000 students at the Panjab University here got an insurance cover of Rs.200,000 at a petty premium of Rs.50 per year after the varsity signed an agreement with a private insurance company, an official said Monday.

As per the agreement, every student will pay an annual premium of Rs.50 and the insurance will cover the hospitalisation charges, accidental risks, among others. Also, the insurance company has extended an insurance cover of Rs.100,000 for the parents of students.

“We were working on this for the last few months and we have already charged the premium amount from the students along with their tuition fees at the start of session. We had invited proposals from various insurance firms and after evaluating all the legalities we have signed an agreement with one company,” a senior university official told IANS.

“This insurance cover will cover both new and old students studying in university campus. It is probably the first time in our country that any university is also covering parents of the students under the insurance scheme,” he added.

Panjab University, one of the oldest universities of the country, was established in 1882. There are over 10,000 students studying in the university campus and girls form the majority — nearly 70 percent — of total students.

Students of the university are very enthusiastic and have welcomed the move.

“This is a very positive move and depicts the concern of university authorities for its students. In fact it was a long pending demand of students and an insurance cover of Rs.200,000 by paying an annual premium of just Rs.50 is a great offering,” Harmanjit Singh Deol, a research scholar at the university and a student leader, told IANS.