Aam Aadmi, Janashree Bima Yojana exempted from service tax

Government has exempted services of life insurance business provided  under Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY)from service tax.

Aam Aadmi Bima Yojana

• Launched in 2007
• Covers death and disability insurance for the benefit of rural landless households.
• Insurance to the head of the family or earning member of the family of rural landless households b/w the age of 18 and 59 years against natural death or accidental death and partial/permanent disability.
• Annual premium payable is Rs 200
• 50% of the premium shall be payable by the Union Government from a separate fund created by the govt and operated by LIC and the remaining 50% by the State Government.
• Also provides for educational aid to the beneficiaries’ children studying from 9^th to 12^th standard as an extended benefit.
• A separate fund has been set up for providing scholarship to the children of beneficiaries.

Janashree Bima Yojana (JBY)

• Launched in August 2000
• Life insurance protection to people who are BPL or marginally above poverty line.
• Persons aged b/w 18 years and 59 years and who are members of the identified 45 occupational groups are eligible for the scheme.
• Premium of Rs 200 per member
• 50% of premium comes from Social Security Fund maintained by LIC, rest 50% borne by the member and/or nodal agency.

Month: Current Affairs - December, 2012