The Government has merged Janashree Bima Yojana (JBY) and Aam Aadmi Bima Yojana (AABY) into one scheme, since both the schemes have similar structure of benefits, premium and target group and are being implemented through Life Insurance Corporation of India (LIC). The schemes were merged for better administration and services in providing life insurance cover to the economically backward sections of the society. It will also avoid any duplication of coverage of lives under the two schemes and thus allow more accurate claim experience.
The objective of the merger of the two schemes is not to increase the savings but to ensure better administration and services under the schemes and also avoid any duplication of coverage of lives under the two existing schemes.
This was stated by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question in the Rajya Sabha today.