The Aam Aadmi Bima Yojana offers death and disability Cover to individuals aged 18 to 59 in the unorganized sector who lack social security. However, implementing such schemes always have its own challenges. Here, we review the Aam Aadmi Bima Yojana, addressing its features, Benefits and impact .
List of Topic Covered
What is Aam Aadmi Bima Yojana?
The Aam Aadmi Bima Yojana (AABY) is a social security scheme to provide financial assistance to low-income families in India. It offers life insurance coverage to individuals in rural areas as well as in urban areas who are typically not on a salary. This scheme aims to support them in facing unexpected events like disability or death by providing essential financial coverage.The Government has merged Janashree Bima Yojana (JBY) and Aam Aadmi Bima Yojana (AABY) into one scheme. The scheme, now known as “Aam Admi Bima Yojana,” came into effect on January 1, 2013
Key Features of Aam Aadmi Bima Yojana (AABY)
- Target group: AABY is a social security scheme that is targeted at people in the unorganized sector.
- Age group: The scheme covers people between the ages of 18 and 59.
- Benefits: The scheme provides a death benefit of Rs. 30,000 in case of natural death and Rs. 75,000 in case of accidental death.
- Premium: The premium for AABY is Rs. 330 per year. Half of the premium amount is borne by the government from their social security fund. Remaining 50% of premium mainly depends on the region whether the premium is being paid by the Central Government, State government or Nodal Agency.
- Distribution: The scheme is administered by the Life Insurance Corporation of India (LIC). You can enroll in this scheme only by visiting your nearby LIC branch.
Eligibility Criteria of Aam Aadmi Bima Yojana (AABY)
We have listed here are the eligibility criteria for Aam Aadmi Bima Yojana (AABY)
- Age: Applicants must be between 18 and 59 years old.
- Income: Eligible individuals include those from Below Poverty Line (BPL) families, vocational groups specified in the scheme, and rural landless households.
- Family Head: The applicant must be the head of the family, regardless of being the sole earning member or not.
- Coverage: Only one family member, who serves as the breadwinner, can avail coverage under the scheme.
These conditions must be met to successfully apply for Aam Admi Bima Yojana.
Benefits and Coverage of Aam Aadmi Bima Yojana
Benefits of Aam Aadmi Bima Yojana (AABY)
- Affordable premiums: The policy offers subsidized and affordable premiums, with 50% of the premium amount sponsored by the government.
- Easy assistance: Policyholders can easily get their queries resolved by contacting the nearest LIC branch or reaching out through email or call.
- Technologically advanced: The policy utilizes a web-based system for digitized data monitoring, enabling quick information exchange and facilitating efficient claim settlements.
- Claim settlement : Simple and hassle free claim settlement process
Coverage Benefits of AABY
- Death from natural causes: In the event of the insured member’s death due to natural causes, a death claim of Rs. 30,000 is provided to the nominee.
- Disability coverage: AABY offers Rs. 37,500 for permanent partial disability and Rs. 75,000 for permanent total disability due to an accident.
- Accidental death coverage: The policy provides coverage for accidental death, offering a claim amount of Rs. 75,000 to the nominee.
- Additional benefit: AABY ensures continued education for at least two children in the family, granting a free scholarship of Rs. 100 per month on a half-yearly basis to eligible children studying between 9th and 12th standard.
Exclusions in Aam Aadmi Bima Yojana
There are few situations which are not covered in Aam Aadmi Bima Yojana are listed below.
- Death or disability due to a war-like situation in the country
- Participation in illegal activities
- Loss of life or disability due to substance abuse
- Death or disability due to mental disorders
- Cost of hospitalization
- Participation in dangerous and adventurous sports
Which occupations are covered under the Aam Aadmi Bima Yojana?
This scheme covers list of many low income occupations which are listed below,
- Firecracker workers
- Paper product manufacturers
- Transport drivers association
- Anganwadi teachers
- Manufacturer of wood products
- Transport karamcharis
- Safai karamcharis
- Auto drivers or rickshaw pullers
- Overseas Indian workers
- Manufacturers of earthen toys
- Beedi workers
- Women associated with self-help groups
- Brick kiln workers
- Forest workers
- Lady tailors
- Handicraft artisans
- Self-employed physically challenged people
- Women of hilly areas
- Papad workers associated with SEWA
- Candle manufacturers
- Sheep breeders
- Handloom Weavers
- Salt growers
- Toddy tappers
- Tendu leaf collectors
- Leather and tannery workers
- Individuals employed in printing rubber and coal products
- Plantation workers
- Sericulture employees
- Powerloom workers
- Coconut processors
- Primary milk producers
- Textile employees
- Construction workers
- Manufacturers of leather products
How Aam Aadmi Bima Yojana (AABY) Work?
Let’s understand this yojana with the help of an example.
- Suppose a 35 years old Manoj from Odisha is jobless and falls under BPL (Below Poverty Line) category.
- He registered in Aam Admi Bima Yojana by visiting a nearby Nodal Agency.
- He will submit the documents along with the application form and 330 to the Nodal Agency and he enrolled for the AABY.
- If Akshay dies of natural causes, his nominee will receive a death benefit of Rs. 30,000. If Akshay dies in an accident, his nominee will receive a death benefit of Rs. 75,000.
- If Akshay meets with an accident resulting in permanent disability, he will receive Rs. 75,000 as compensation. In the case of partial disability, he will receive Rs. 37,500.
How to Apply for Aam Aadmi Bima Yojana?
You can apply for this plan via both ways i.e. offline as well as online.
just visit the LIC website and click on LIC Aam Admi Bima Yojana Apply Online. A form opens. Fill it properly and upload the required documents.
Note : However, this option is not currently on the LIC website. Also Forms can be downloaded from the official state websites as well.
Just Visit your nearby nodal agency. Get the application form. Fill it properly. Attach the necessary documents and submit them to your nearby LIC branch.
Documents required when applying for Aam Aadmi Bima Yojana.
Following mandatory documents are required for applying to AABY.
- Ration card
- Aadhaar card
- Voter ID card
- Income certificate
- Nominee application form
How to make a claim in AABY Yojana?
Claim Process for Death and Disability
Fill out the claim form, attach required documents, and submit to the Nodal Agency for verification and approval. Funds will be disbursed upon approval.
Documents : death certificate of the insured person, autopsy report (in case of accidental death), copy of FIR, medical proof of disability
Claim Process for Educational Support
Fill out the scholarship form, submit with necessary documents to the Nodal Agency for verification, and receive fund disbursal for educational support twice a year.
Aam Aadmi Bima Yojana (AABY)FAQs
Below are the few frequently asked questions on AABY.
A government-sponsored social security scheme providing affordable insurance coverage to individuals in the unorganized sector.
Individuals aged 18 to 59 in the unorganized sector, including below poverty line (BPL) families, rural landless households, and specific occupational groups. Check the detailed categories above.
Coverage for death, disability, and scholarships for children’s education.
The premium is Rs. 330 per year, with 50% sponsored by the government and remaining 50% depends upon the region where you live, it can be waived out or you have to pay from your pocket.
You can download application form from any state website. or you can visit your nearby nodal agency or LIC branch and follow the instructions.
Fill out the claim form, submit necessary documents, and funds will be disbursed upon approval.
No, it is specifically targeted at individuals in the unorganized sector who meet the eligibility criteria.
No, only one member per family can be covered as the primary insured.
Renewal options are available, and it is advisable to start the claim process before the policy expires.
Pre-existing conditions are not covered under this scheme.
This covers all the points on Aam Aadmi Bima Yojana (AABY) scheme. In case you have any suggestions or questions, please write in the comment box and we will get back to you.