Assam Monday unveiled an ambitious Rs.250 million free health and accident risk insurance policy for nearly 30 million people below the poverty line.

The chief minister's Jeevan Jyoti Insurance Scheme that came into effect from Monday is the first of its kind in India where the premium is being paid by the government.

"This is indeed a step forward in helping people living below the poverty line so that they can avail benefits under the new policy like others who can afford advanced healthcare facilities," Chief Minister Tarun Gogoi said.

ICICI Lombard will be the insurance company acting as a partner with the Assam government in implementing the scheme.

The beneficiaries of the insurance policy cover all those whose names are enrolled in the state's electoral rolls and their dependants. According to the policy, a person will be entitled to Rs.25,000 if one meets with an injury in a road accident, earthquake, floods, landslides, and even natural disasters, barring terrorism related incidents.

The amount doubles to Rs.50,000 and can be claimed by the next of kin if there is a death. "This will mainly help underprivileged people in the state who can now have the courage to get adequate medical attention," Gogoi said.

"Unlike in most health insurance policies, we have decided to cover diseases like Alzheimer's, cancer, open heart surgeries, old-stage renal failure, burn cases, and cardiac arrests and major organ transplantations."

The process of enrolling in the new scheme has been kept simple to enable the rural poor to take the benefits of the insurance policy.

"Forms will be available with the village headman and the revenue officer in the area will identify the person after verifying his or her name from the electoral rolls," Assam Planning Minister Himanta Biswa Sarma said.

"The procedures have been so framed that when there is a claim people do not have to run from pillar to post."

The insurance scheme has been hailed by people across the state.

"The chief minister had announced Jan 1 that such a policy would come into effect soon. Today we are really happy that the government has implemented the scheme that will definitely benefit people who are economically not very sound," said Bolen Baishya, a retired teacher.