Aam Aadmi Bima Yojana (AABY)

A Social Security Scheme was initiated and excellently administered by the Government of India in the form of the Aam Aadmi Bima Yojana for the citizens settled under 48 identified vocational/ occupational groups /rural areas with landless households. This group insurance scheme was introduced on 2nd October, 2007. It is also administered under the Life Insurance Corporation of India (LIC). The Aam Aadmi Bima Yojana offers insurance coverage to one earning member of the family or the family head.

Under the supervision of the Government of India, the Ministry of Finance made a proposal to merge both the Social Security Schemes, ‘Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY). Post-merger, since January 1, 2013, the scheme was newly named as ‘Aam Aadmi Bima Yojana.’

Benefits of Aam Aadmi Bima Yojana (AABY)

There are certain benefits that the Aam Aadmi Bima Yojana (AABY) offer. They are mentioned below:

In case of natural death of the insured, the policy offers an amount of Rs.30,000 death benefit to the surviving beneficiaries or the family members of the policyholder.
In case the insured suffers an accidental death or suffers a permanent total disability due to an accident leading to loss of both the eyes or both the limbs, Loss of one eye & one limb, in an accident the policy offers an amount of Rs.75,000 to the surviving beneficiaries or the family members of the policyholder.
In case the insured suffers a partial permanent disability due to an accident leading to loss of one eye or one limb, the policy offers an amount of Rs.37,500 to the surviving beneficiaries or the family members of the policyholder.
The Aam Aadmi Bima Yojana offers Scholarship benefits as a Free Add-on benefit too. This benefit is made available for a maximum of 2 children studying between 9th to 12th standard of the policy holder’s nominee or beneficiaries. A fee of Rs.100 per child per month is offered.

Objectives of Aam Admi Bima Yojana

Provide social security and financial aid to the rural population.
Provide social security to people living below the poverty line/people living in rural areas without any access to urban healthcare.

Exclusions Under Aam Aadmi Bima Yojana

Self-inflicted injuries arising out of insanity or mental illness.
Suicide/attempted suicide.
Childbirth/Pregnancy.
Medical expenses incurred following an accident.
Death or disability due to war/war like activities.
Death or disability due to chemical/biological//radioactive weapons.
Participation in extreme sports.
Death or disability due to breach of law/criminal intent.

Eligibility Criteria for Aam Aadmi Bima Yojana (AABY)

A person aged between 18 to 59 years can avail this insurance facility.
Available only to the head of the family or the earning member of the family below the poverty line in the rural areas with landless households.
Documentation requirement should be fulfilled.

Documentation for AABY Scheme

There is certain documentation that is required to be eligible for the Aam Aadmi Bima Yojana (AABY). They are mentioned below:

Name in the Voter's List
Ration Card
Aadhaar Card (Unique Identification Card)
Extract from the school and birth certificate
Any identity card issued by the Government of India or any reputed employer

Occupations Covered Under The Aam Aadmi Bima Yojana(AABY)

The Aam Aadmi Bima Yojana (AABY) Covers The Below Mentioned Vocations and Occupations:

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

Aam Aadmi Bima Yojana Premiums

The premium per individual for a cover of ₹30,000 is ₹200 for a year. 50% of the cover is subsidized from the social security fund. In case of Rural Landless Household, the remaining 50% is covered by the State Government/ Union Territory. In case of other occupational group, the remaining 50% premium shall be borne by the Nodal Agency and/or Member and/or State Government/ Union Territory.

Claim Procedure Under Aam Aadmi Bima Yojana (AABY)

Claim Procedure in case of death

The nominee needs to make an application in case of death of the insured during the policy period.
The Nodal Agency will ask the nominee for the death certificate of the insured along with the application for claim settlement.
The officer assigned by the Nodal Agency will verify the genuineness of the claim.
Document submission along with the deceased’s death certificate, a separate certificate mentioning that the head of the family/earning member belongs to below the poverty line should be submitted by the office assigned by the Nodal Agency.
Post document verification, the claim would be settled.

Claim Procedure in case of Accidental death

Along with the death certificate, the below documents also needs to be submitted in case the insured meets with an accidental death:

Policy Inquiry Report
Post Mortem Report
FIR Copy
Police Final Report

Claim Procedure in case of Scholarship

A child of the member of the Aam Aadmi Bima Yojana (AABY) has to fill an application form every 6 months. The same needs to be submitted to the Nodal Agency.
The child’s verification and identification should be done by the Nodal Agency.
A list of the children who have been qualified for the Scholarship needs to be submitted by the Nodal Agency along with the name, class, school of the student. Besides, details such as the Member’s name, Master policy no., Membership number and NEFT details for direct payment needs to be submitted.
After every 6 months on 1ST July and 1st January, the Life Insurance Corporation of India credits the scholarship fees via NEFT or through bank account transfer, to the beneficiary’s account for the beneficiary child.

FAQ's On Aam Aadmi Bima Yojana (AABY)

Why was Aam Aadmi Bima Yojana Launched?

The Aam Aadmi Bima Yojana was launched in India by LIC in order to provide social security along with health and financial aid to the rural population of India who do not have any access to healthcare and medicine.

When was the Aam Aadmi Bima Yojana started?

The Aam Aadmi Yojana was started in 2013 post the successful merger of Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY).

Where can you apply for the Aam Aadmi Bima Yojana Scheme?

You can apply for the Aam Aadmi Bima Yojana Scheme at any of the registered nodal agencies or via LIC.

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