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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.

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
TextilePhysically Handicapped
Beedi Workers Self Employed Persons
Food Stuffs like Khandsari / SugarConstruction Workers
Carpenters Safai Karamacharis
Manufacture of Wood ProductsCoconut Processors
CobblersRickshaw Pullers / Auto Drivers
Manufacture of Paper ProductsSericulture
FishermenRural Poor
Manufacture of Leather ProductsPrimary Milk Producers
Hamals Sheep Breeders
PrintingHilly Area Women
Handicraft ArtisansUnorganized workers covered under RSBY
Rubber & Coal ProductsToddy Tappers
Handloom WeaversWomen Associated with Self-Help Groups
Chemical Products like candle manufactureRural Landless Households
Handloom & Khadi WeaversOverseas Indian Workers
Mineral products like earthen toys manufacturePowerloom Workers
Lady TailorsFire Crackers’ Workers
AgriculturistsSalt Growers
Leather & Tannery WorkersAanganwadi Teachers
Transport Drivers AssociationTendu Leaf Collectors
Papad Workers attached to ‘SEWA’ Transport Scheme for the Urban Poor
Plantation WorkersForest Workers

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.
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