India yesterday launched the world’s biggest health insurance scheme which Prime Minister Narendra Modi said would cover some 500 million poor people, reports AFP from New Delhi.

The programme, dubbed “Modicare”, promises health cover worth 500,000 rupees ($6,900) to every poor family to treat serious ailments.

The scheme is expected to cost the central and 29 state governments $1.6 billion per year in total. Funding will be increased gradually according to demand.

Modi handed medical cards out at the launch in Ranchi, capital of the eastern state of Jharkhand, calling it a historic day for India.