Unhappy with the government's decision to grant subsidy to Life Insurance Corporation for its new pension scheme, private life insurers have asked Insurance Regulatory and Development Authority to come up with a standardised product.

IRDA had proposed a standardised pension product before the Budget but private players have asked the regulator to modify it, industry sources told PTI in New Delhi on Thursday.

Initially, IRDA proposed that a uniform pension plan with only Rs 100 monthly contribution could be launched for the unorganised sector and had sought tax exemption from the finance ministry. However, government did not approve it in this year's Budget.

"A standardised product is still on the cards. We have IRDA to modify it, as Rs 100 monthly contribution is very small an amount and we will find it difficult to sell it," Aviva Life Insurance CEO Stuart Pury said, confirming the development.

He said if the IRDA modifies it and makes it attractive for insurers, the private players would like to have such a product in their portfolio.

"It will be an entry level product for the unorganized sector. We also have our own product," Purdy said.

Finance Minister Jaswant Singh announced the launch of 'Varistha Bima Pension Yojana' by Life Insurance Corporation offering a 9.0 per cent return with a range of  Rs 250-2,000 monthly payment for senior citizens.