Aam Aadmi Bima Yojana by Govt. of India

The Aam Aadmi Bima Yojana covers natural death/accidental death, permanent total disability, and partial permanent disability. The scheme provides coverage to individuals residing in rural areas and individuals who are below the poverty line.
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Launched on 2 October 2007, the Aam Aadmi Bima Yojana (AABY) provides social security to poor households that are not protected financially. Under the scheme, disability, accidental death, and natural death cover is provided for individuals who fall under certain occupational groups.

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Benefits of Aam Aadmi Bima Yojana:

The benefits under Aam Aadmi Bima Yojana scheme are as follows:

  • Accidental death coverage 
  • Disability coverage 
  • Death due to natural causes 
  • Scholarship benefits 

Features of Aam Aadmi Bima Yojana

The main features of the scheme are mentioned below:

  • Fast assistance 
  • Simple claim process 
  • Enrolment process is easy 
  • Sponsored premium 

Eligibility Criteria for Aam Aadmi Bima Yojana:

The following are the basic requirements for applying for the Aam Aadmi Bima Yojana:

  • The applicants should be aged between 18 and 59.
  • The applicant ideally should be the head of the family or one of the earning members of a below poverty line family (BPL) or marginally above the poverty line under identified vocational group/rural landless household.
  • Some documentation is also required.
  • Only one member in the family will be eligible.
Aam Aadmi Bima Yojana

Documentation Required for Aam Aadmi Bima Yojana Application:

The following are the documentation requirements to apply for this scheme:

  • Income certificate 
  • Application form to add nominees 
  • Proof of address 
  • Proof of identity 
  • Application form 

Aam Aadmi Bima Yojana Premiums:

The premium that has to be paid by a member is initially charged at Rs.200/- per annum for each member for a basic cover of Rs.30,000/-. Half of this amount is subsidized from the Social Security Fund. In the case of a Rural Landless Household (RLH) the remaining 50 % premium is borne by the State Government/ Union Territory. In the case of other occupational group, the remaining 50% premium shall be borne by the Nodal Agency and/or State Government/ or Member and Union Territory.

Procedure to Claim Aam Aadmi Bima Yojana:

The death or disability claims which are under this scheme are supposed to be settled by the P&GS Unit of LIC. They make a direct payment to the beneficiaries through NEFT. In the case that there isn't a NEFT facility available, the money for the claim is directly transferred to the bank account of beneficiaries. This would also require prior approval from competent authority, the A/C payee cheque or claim can be paid by any other mode as decided by LIC.

Death Claim Procedure:

  1. In the event of death of the member during the period of coverage and while the policy is in force, an application has to be made by his/her nominee.
  2. This application should be made along with a Death Certificate for payment of claim amount to the designated official of the Nodal Agency.
  3. The designated official of the particular Nodal Agency has to then verify the claim papers.
  4. The officer will then submit the documentation and application along with the death certificate and a certificate that the deceased member was head /earning member of the family belonging to the BPL/Marginally above BPL family under the eligible occupations under the scheme.
  5. Nodal Agency has to submit the following with the application:
    1. Claim Form duly completed in all respects
    2. Original death certificate along with a copy duly attested.

Accident Claim Procedure:

In case of accident benefit claim additional requirements have to be submitted along with the Death Registration Certificate. This includes:

  1. Copy of FIR
  2. Post Mortem Report
  3. Police Inquest Report
  4. Police Conclusion Report / Final Report of Police.

Scholarship Claim Procedure:

The member of Aam Aadmi Bima Yojana whose child is eligible for this scholarship has to fill up an application form every half a year and submit it to the Nodal Agency.

  1. The Nodal Agency will have to identify and then verify the students.
  2. The Nodal Agency official then would submit the list of beneficiary students to the concerned P&GS unit with full details which include:
    1. Name of the student
    2. School’s name
    3. Class
    4. Member’s name
    5. Master policy no.
    6. Membership no.
    7. NEFT details for direct payment.
  3. Each half year, on July 1 and January 1, LIC will credit the scholarship payment to the Account of the beneficiary student, by NEFT or bank account, if the NEFT facility is unavailable.

FAQs for Aam Aadmi Bima Yojana

  1. Where Can You Apply for The Aam Aadmi Yojana Scheme?

    The individual has to apply at their respective Nodal Agency. A“Nodal Agency” is basically the Central Ministerial Department or State Government or Union Territory of India or any other institutionalized arrangement or any registered NGO appointed to administer the Scheme as per the rules in the applicant’s residential area. In the case of “Rural Landless Households”, which is the case for most applicants the nodal agency would mean the State Government or Union Territory appointed to administer the scheme.

  2. What is the Aam Aadmi Bima Yojana Premium Fund?

    There is a fund called “Aam Aadmi Bima Yojana Premium Fund“, established by the Central Government to pay the contribution by the Central Government. This fund is maintained by LIC. Under the AABY, a free add-on benefit in the form of scholarship to children is also available.

  3. What are the Vocations and occupations Covered Under Aam Aadmi Bima Yojana?

    The following occupations and vocations are covered:

    Brick Kiln Workers Textile
    Beedi Workers Food Stuffs like Khandsari / Sugar
    Carpenters Manufacture of Wood Products
    Cobblers Manufacture of Paper Products
    Fishermen Manufacture of Leather Products
    Hamals Printing
    Handicraft Artisans Rubber & Coal Products
    Handloom Weavers Chemical Products like candle manufacture
    Handloom & Khadi Weavers Mineral products like earthen toys manufacture
    Lady Tailors Agriculturists
    Leather & Tannery Workers Transport Drivers Association
    Papad Workers attached to ‘SEWA’ Transport Karmacharis
    Physically Handicapped Self Employed Persons Rural Poor
    Primary Milk Producers Construction Workers
    Rickshaw Pullers / Auto Drivers Fire Crackers’ Workers
    Safai Karamacharis Coconut Processors
    Salt Growers Aanganwadi Teachers
    Tendu Leaf Collectors Kotwal
    Scheme for the Urban Poor Plantation Workers
    Forest Workers Women Associated with Self-Help Groups
    Sericulture Sheep Breeders
    Toddy Tappers Overseas Indian Workers
    Powerloom Workers Rural Landless Households
    Hilly Area Women Unorganized workers covered under RSBY

GST rate of 18% applicable for all financial services effective July 1, 2017.

Disclaimer: Premiums may vary depending upon factors like age, location and prevailing taxes/GST.

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