Another initiative taken by the Association as early as 1980 was to sign a memorandum of understanding with Life Insurance Corporation of India to develop Group Insurance Trusteeship Scheme [LITs] for the parents of the Association. This scheme was available at two levels. At the first level, parents were to make a one time payment of Rs. 1000/- towards the scheme. The interest on this amount was paid towards the premium of the scheme and in the event of the demise of the parent, the amount insured, i.e. Rs. 20,000/- was given to the Association. The Association acting as Trust and guardians of the special persons, gives a monthly allowance of Rs. 200/- for the maintenance of the child.

Parents were entitled to become members of this scheme till they attain the age of 60. At level two the amount was reduced to Rs. 500/- per parent and proportionately the maintenance allowance was also reduced to Rs. 100/-.

The Karnataka Government showed interest in this scheme and signed an MoU with KPAMRC to jointly put this scheme into operation. The Karnataka Government paid the initial amount for insurance to the LIC and the other formalities was taken care of by KPAMRC. Now this arrangement has been discontinued.