Amid the nuclear deal stand-off with the Left, the UPA is planning to bring its aam admi image on track by launching Aam Admi Bima Yojana (AABY) on Gandhi Jayanti. The Union Cabinet is likely to consider the Finance Ministry’s proposal to operationalise an improvised version of AABY on Thursday. The improvisation will be over the one announced by the Finance Minister during his

Budget speech.

In addition to providing an insurance cover against death and disability to heads or the earning member of rural landless households, the scheme will also provide a scholarship of Rs 300 per quarter per child for two children studying in classes 9 to 12 in case of the death and disability of the head or the earning member of the family.

The scheme will not include cases where the death or disability covered is caused during riots, civil commotion, rebellion, war-like situations, hunting, racing and similar other cases. In addition, the death and disability caused by intentional acts like suicides, attempts to suicide, insanity or during an act of breaking law will also not be covered under the scheme.

According to the proposal, the Government will pay an annual premium of Rs 200 per member, which will be shared equally between the states and Centre. The scheme will be administered through nodal agencies at state governments, which will not only identify the beneficiaries but will also maintain a registry of members of rural households under it.

Accordingly, while in case of natural death the beneficiary households will be entitled for a benefit of Rs 30,000, in cases of accidental death and permanent disability a beneficiary household will be entitled for Rs 75,000 as cover. Partial disability to the heads or the earning member of the households will be insured only to the level of Rs 37,500.

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