| Consider the following statements: |
| 1. Life insurance business provided under the Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY) is liable for service tax. |
| 2. AABY covers death and disability insurance for the benefit of rural landless households. |
| 3. JBY provides life insurance protection to people who are below poverty line or marginally above poverty line. Which of the above statements is/are correct? |
A) 1, 2, 3
B) 2, 3
C) 1, 2
D) 1, 3
Correct Answer: A
Solution :
[a] Ministry of Finance, Government of India has approved the merger of Social Security Schemes Aam Admi Bima Yojana (AABY) and Janashree Bima Yojana (JBY). The merged scheme has been renamed "Aam Admi Bima Yojana" and has come into effect from 01.01.2013. Under this scheme the head of the family or one earning member in the family of such a household is covered. The premium of Rs. 200/- per person per annum is shared equally by the Central Government and the State Government, so the insured person has to pay no premium. The member to be covered should be aged between 18 and 59 years. The benefits under this scheme are as follows: On natural death. Rs. 30000/- On Death due to accident/on permanent total disability due to accident (loss of 2 eyes or 2 limbs): Rs. 75000 On partial permanent disability due to accident (loss of one eye or one limb): Rs. 37500/- There is a fund called "Aam Aadmi Bima Yojana Premium Fund", established by the Central Government to pay the contribution by the Central Government. This fund is maintained by LIC. Under the AABY, a free add-on benefit in the form of scholarship to children is also available.
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