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There are over 12 millions such families in Bihar, official statistics said.
Under the scheme, all rural landless households will be provided life and disability insurance cover. On death due to accident and permanent disability due to accident, the family would get Rs 75,000. In case of partial disability due to accident, the insurance cover would be Rs 37,500.
Officials said the scheme would be applicable to the poor persons in the age-group of 18 to 59. The head of the family or one earning member in the family will be insured.
"The scheme would prove to be a boon for millions of poor families in Bihar who so far had been denied financial assistance by the successive governments," Bihar Labour Resources Minister Awadhesh Narayan Singh said.
The state government will also provide a monthly financial assistance of Rs 100 each to every two children of the insured for carrying out their studies. The money will be released after every six months on the basis of list to be provided by the principals of the schools concerned, officials said.
In the first phase, the scheme has been launched for the people in trouble-torn Jehanabad and Arwal districts badly affected by naxal activities. Hundreds of poor villagers have been killed in over 30 massacres carried out by the Maoists in the twin districts during last one decade.
Officials said, the people below poverty line (BPL) list has been made the basis for making selection of persons to be covered under the scheme.