New Delhi, July 31 (IANS): The Union Petroleum and Natural Gas Ministry Wednesday launched the Accident Insurance Scheme for CNG drivers of public transport vehicles in the capital.

"Under the scheme, the nominee of a policy will receive Rs.1.5 lakh in case of death of a driver in an accident while driving the vehicle," said Petroleum and Natural Gas Minister M. Veerappa Moily.

CNG-run vehicle drivers would not have to pay for the premium and registration for the scheme.

Besides, Rs.25,000 to each child of the deceased - subject to a maximum of Rs.50,000 for two children - would be released as education allowance.

There is also a provision for relief in case of accident, partial disability and permanent disability.

The Indraprastha Gas Limited (IGL) will oversee the implementation of the scheme and make an annual payment of Rs.35 lakh to Oriental Insurance Company for the purpose.

Delhi Chief Minister Sheila Dikshit also announced a corpus fund of Rs.1 crore for the welfare of drivers of CNG commercial vehicles.