A Group Insurance Scheme for Khadi Workers, namely, “ JANASHREE BIMA YOJANA” was launched during X five years plan through KVIC on 15th August 2003 by the Government of India with LIC of India as insurers. The scheme covers spinners, weavers, pre-spinning artisans and post weaving artisans engaged in the khadi sector. This scheme, like other Group Insurance Schemes, does not have any terminal benefit for the beneficiaries as this is not a Life Insurance scheme. The scheme provides only risk cover for death/disability and the worker is not entitled to get any return on the premium paid by him or pain on his behalf by KVIC/Khadi Institutions, if he survives the entire period of insurance. The scheme has been renamed as AAM ADMI BIMA YOJONA instead of JBY scheme.


This scheme initially provided each artisan with risk cover up to (I) Rs. 20,000 for natural death and Rs. 50,000 for death due to accident, (ii) Rs. 50,000 for permanent disability (loss of two eyes/limbs of use) due to accident and (iii) Rs. 25,000 for partial disability up to 2005-06 while w.e.f. 2006-07 the LIC of India has enhanced risk cover for the khadi artisans and the revised risk cover provided to each artisan is (i) Rs. 30,000 for natural death and Rs. 75,000 for death due to accident, (ii) Rs. 75,000 for permanent disability (loss of two eyes/limbs of use)due to accident and (iii) Rs. 37,500 for partial disability, without charging any additional cost either to the beneficiary or to the Government of India.

The Shikhsha Sahayog Yojana is add-on coverage under AABY, without any additional premium. The wards of the khadi artisans (benefit restricted to two children per member/family) covered under the AABY are entitled to receive up to Rs. 1200 per annum per ward towards tuition fee under the Shiksha Sahayog Yojana. This benefit is only for wards studying in classes IX to XII, including those studying in Industrial Training Institute (ITI).

3.Amount of Premium:

The premium payable has been fixed @Rs. 100/-

  1. The contribution from social fund (Govt. Of India)    Rs. 50.00
    b) Institution contribution                                                Rs. 25.00
    c) KVIC                                                                                     Rs. 12.50
    d) Artisan                                                                               Rs. 12.50