Life Insurance Corporation will implement the scheme. The scheme would be finalized in consultation with the State Governments and would be implemented in 2007-2008. 

 “Aam Admi Bima Yojana the new death and disability insurance scheme will cover rural landless households announced Finance Minister P. Chidambaram.  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.

 Mr. Chidambaram said the insurance scheme involves insuring the head of a family or one of its earning members. 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.