Govt to give Rs 1,000 cr more for Aam Admi Bima Yojana

Written by Agencies | New Delhi, July 31: | Updated: Jul 31 2008, 20:35pm hrs
The government on Thursday decided to provide an additional Rs 1,000 crore to Life Insurance Corporation to cover another one crore rural landless households under the social security scheme 'Aam Admi Bima Yojana'.

The scheme will cover an additional one crore landless households by September 30, 2009 under the AABY to provide death and disability benefits to the head of the family or earning members of the family, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.

The scheme, which is being implemented through the LIC, was launched on October 2 2007.

The union government bears 50 per cent of the premium of Rs 200 per year per person and the state government pays the rest of the premium on behalf of the beneficiaries.

Besides, the Cabinet also approved giving Rs 500 crore towards Social Security Fund maintained by LIC to provide 50 per cent share of premium Janshree Bima Yojana for all women self help groups credit linked to banks.

Dasmunsi said the decision would facilitate providing life and permanent disability cover to 2.5 lakh women SHGs under the scheme by March 31, 2009.

Janshree Bima Yojana was launched in August 2000 to provide life insurance protection to the rural and urban poor under various vocational groups.

The premium under the scheme is Rs 200 per member per annum, of which 50 per cent premium is paid by beneficiaries of the scheme and the rest pitched in by the government through the fund maintained by LIC.

At present, there are 45 vocational or occupational groups covered under the scheme.