The scheme to be implemented through Life Insurance Corporation
NEW DELHI: Finance Minister P. Chidambaram on Wednesday announced a new insurance death and disability scheme to cover rural landless households. The scheme "Aam Admi Bima Yojana" will be implemented through Life Insurance Corporation.
Mr. Chidambaram said the insurance scheme involves insuring the head of a family or one of its earning member. The Government would bear 50 per cent of the premium of Rs. 200 a year a person. He urged the State Governments to come forward to bear the other 50 per cent on behalf of the beneficiaries.
Taking into account the annual cost to the Centre, the Finance Ministry intended to place Rs. 1,000 crore in a fund that would be maintained by LIC. The scheme would be finalised in consultation with the State Governments and begin to implement in 2007-2008.
According to a National Sample Survey report, the estimate of such households is about 1.5 crore. By end of March 2007, 70 lakh households would be covered through LIC's existing schemes with the support of some State Governments and the social security fund with LIC.