The Union Labour & Employment Minister Shri Mallikarjun Kharge has informed the Rajya Sabha that Aam Admi Bima Yojana (AABY) was launched on 02.10.2007 with a view to providing insurance cover to the head of family or one earning member of rural landless households. The member should be aged between 18 years and 59 years. Under the scheme, the head of the family or an earning member of the family is eligible to receive the benefits of Rs. 30,000/- in case of natural death, Rs.75,000/- accidental death, Rs. 75000/- for total permanent disability (loss of two eyes or two limbs or loss of one eye or one limb in accident) and Rs. 37,500/- for partial permanent disability ( loss of one eye and one limb in accident). The premium under the scheme is Rs. 200/- per member per annum equally shared in the ratio of 50:50 between Central Government and respective State Government/ Union Territory. AABY also includes Shiksha Sahyog Yojana (SSY), a free add-on benefit of scholarship of Rs. 100 per month up to a maximum of two children of the beneficiaries studying between class IX and XII. A Statement showing State-wise number of lives covered, including Madhya Pradesh, under Aam Admi Bima Yojana is annexed.
STATE-WISE COVERAGE UNDER AAM ADMI BIMA YOJANA AS ON 31.07.2011
| Sl. No. | State/ Union Territory | Lives Covered |
| 1. | Himachal Pradesh | 5,000 |
| 2. | Andhra Pradesh | 72,92,606 |
| 3. | Maharashtra | 16,21,671 |
| 4. | Gujarat | 8,60,053 |
| 5. | Chandigarh | 1,297 |
| 6. | Jammu & Kashmir | 91,740 |
| 7. | Madhya Pradesh | 13,98,376 |
| 8. | Bihar | 19,21,604 |
| 9. | Jharkhand | 53,231 |
| 10. | Karnataka | 7,45,843 |
| 11. | Kerala | 3,93,160 |
| 12. | Uttar Pradesh | 22,34,849 |
| 13. | Chhattisgarh | 3,34,696 |
| 14 | West Bengal | 6,62,987 |
| 15 | Puducherry | 1,48,452 |
| 16 | Punjab | 19,013 |
| 17 | Assam | 46,904 |
| Total | 1,78,31,482 | |
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