Aam Aadmi Bima Yojana for 15 m rural landless from Oct 2

New Delhi, Aug 30 (UNI) The Government will launch an Aam Aadmi Bima Yojana (AABY), covering death and permanent disability, for 15 million rural landless households from October 2, it was decided today.

The decision, taken at the Cabinet meeting, will help the poorest of the poor on the birth anniversary of Mahatma Gandhi which is celebrated as 'peace and non-violence' day across the world.

The scheme provides for insurance of head of the family or an earning member of the family of rural landless household between the age of 18 to 59 years against natural death as well as accidental death and partial and permanent disability, Information and Broadcasting Minister P R Dasmunsi told reporters.

The annual premium payable per member is Rs 200, of which 50 per cent will be paid by the Central Government and the remaining 50 per cent by the State Government.

The State Government will be the nodal agency for implementing the scheme.

In case of natural death, Rs 30,000 will be provided, for accidental death Rs 75,000, for total permanent disability Rs 75,000 (loss of two eyes or two limbs or loss of one eye and one limb in accident), and for partial permanent disability Rs 37,500 (loss of one eye or one limb in an accident).

Two children of the beneficiaries studying in 9th to 12th Standard will get Rs 300 per quarter each as scholarship.

Rs 1,000 crore fund will be operated by LIC for meeting the liability of Central Government towards its share of premium payment.

In the first year, about 7-8 million rural landless households would be covered under the scheme requiring an expenditure of Rs 70-80 crore by the Central Government towards its share of 50 per cent premium.

With an 8 per cent per annum return expected on the Rs 1000 crore fund, the amount would be sufficient to meet the liability of premium payment, Mr Dasmunsi said.

A separate Rs 500 crore fund will be created for providing scholarships to children of beneficiaries.

This will make available Rs 40 crore for the full year at 8 per cent per annum return. This amount would suffice for the coverage of 333,000 children of the beneficiaries.

The Scheme would extend the benefit of life insurance coverage as well as coverage of partial and permanent disability to the head of the family or an earning member of the family of rural landless households in the States and also educational assistance to their children studying from 9th to 12th standard as an extended benefit, the Minister said.

UNI