The Assam government Saturday announced a free health and accident insurance coverage to the state's 26 million people, including separatists.

The chief minister's Jeevan Jyoti Insurance Scheme will come into effect from Apr 1 and is the first of its kind in India where the premium will be paid entirely by the state government. Beneficiaries of the insurance policy will cover all those enrolled in the state's electoral rolls and their dependents.

"There may be hiccups in implementing the policy initially, but we will ensure that the procedures are kept simple so that each and every person gets the benefits easily without any bureaucratic hassles," Assam Chief Minister Tarun Gogoi said here.

"Even if a militant is enrolled in the voters' list, he or she will be able to claim the insurance cover," he said.

According to the scheme, a person is entitled to Rs.25,000 ($576) if hurt by earthquake, flood, landslide, accident or riot and terrorist strike. The amount doubles to Rs.50,000 and can be claimed by the next of kin in case of fatalities.

Although details are yet to be worked out, the chief minister said the major thrust would be on the health insurance cover where a person will be provided post- and pre-medical benefits, including payment of hospitalisation bills under the scheme.

Gogoi said this would help the underprivileged look forward to adequate medical attention.

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

The government will invite tenders from insurance companies and will offer the contract to a viable company.

"The state will have to bear an additional expense of about Rs.200 million but we are prepared to meet the cost," the chief minister said.