There is finally help at hand for rural India’s landless labourers. The government will launch an insurance scheme from October 2 that will provide death and disability cover to millions of Indians below the poverty line.

India has nearly 150 lakh rural households who do not own land. The Aam Aadmi Bima Yojana cleared by the Union Cabinet on Thursday will cover half of them over the next one year. Those remaining will be brought under the shield of the scheme next year.

Under the scheme, the government will provide the head of the family Rs 30,000 as compensation in case of natural death, Rs 75,000 in case of accidental death and disability. In case of partial permanent disability like the loss of an eye or an limb, Rs 37,500 will be given. Two children in the family, studying between Class IX-XII will also get Rs 300 per quarter as scholarships.

The Centre will pay half the annual Rs 200 premium for each member in the age group of 18-59 years. States will contribute the other half. Information and Broadcasting Minister P.R. Dasmunsi said the Centre would create a Rs 1,000 crore fund to provide for the Centre’s contribution.

The Life Insurance Corporation of India will operate the fund. A second fund of Rs 500 crore will be created for the scholarship programme.
The Cabinet also cleared a six per cent hike in dearness allowance for central government employees and pensioners.

This will entail a burden of Rs 2,189.96 crore during the rest of the current financial year. The Cabinet also extended the notification empowering states to act against hoarding of wheat and pulses for another six months to check inflation. (Hindustan Times)