Aam Admi Bima Yojana

Although health facilities are growing in India, workers have no social security concerning health. It led to the Aam Aadmi Bima Yojana (AABY) launch on October 2 2007. The Scheme will help poor households with social security as they do not have any financial protection. Life Insurance Corporation of India administers the Scheme and covers disability, natural and accidental death of individuals who are part of the occupational or vocational groups and unorganized workers. Those who reside in rural regions or are below the poverty line can also avail the benefit through the Scheme.

Eligibility Criteria for the Scheme:

1. Applicant should fall between the age of 18 and 59.

2. The applicant should usually be the head of the family or part of the identified vocational group/rural landless household or one earning Member of the below poverty line family (BPL).

3. From the family, only one Member is eligible.

Documents Required for the Scheme:

• Ration Card
• Extract from Birth Register
• Excerpt from School Certificate.
• Voter’s List
• Identity card issued by reputed employer/Government Department.
• Unique Identification Card( Aadhar Card).

Detail about Premiums

Under the Scheme, the initial premium will be Rs.200/- yearly for each Member. The insurance cover will be Rs.30,000/- and from that amount, 50% is set aside as a part of the Social Security Fund. 

The state government or union territory will take care of the remaining 50 % premium in the case of Rural Landless Household (RLH). The nodal agency and Member and State Government/ Union Territory will take care of the 50% remaining premium in the case of occupational groups. 

Benefits of the Scheme

1. Natural Death Insurance covers an amount of Rs. 30000/-.
2. A sum of Rs. 75000/- is the insurance cover for the death due to an accident.
3. A sum of Rs. 37500/- is the insurance cover for a partial permanent disability like losing one limb or an eye.
4. A sum of Rs. 75000/- is the insurance cover for total permanent disability due to an accident.
5. The Scheme also covers Scholarships as a Free Add-on benefit. For the utmost, two beneficiary children are in 9th to 12th Standard. The cover will be Rs.100/= per month for each child. It will be paid half-yearly every year – on July 1 and on January 1.
6. Individuals get fast assistance under the Scheme.
7. The claim process and enrolment process is simple and easy.
8. One gets sponsored premium.

How to claim under Aam Aadmi Bima Yojana?

The P&GS Unit of LIC will settle the death or disability claim. There will be direct payment through NEFT in the beneficiary account or directly to their bank account if there is no NEFT. 

One needs the approval of the authorized party for the claim payment along with the A/C payee cheque. LIC may decide to pay the claim through another mode in some instances.

Process for Death Claim:

• The nominee will have to apply for the claim if death occurs during the coverage period and while the policy is in force.
• With the application, the nominee has to give a Death Certificate to the authorized officer of the Nodal Agency.
• The officer will verify the claim papers.
• Next, they will submit the application and all the documents and certificates, including a certificate stating the deceased member category.
• Nodal agency will submit below also:
  • Duly filled claim form with all the details.
  • Original death certificate with attested copy

Process of Accident Claim:

The candidate must submit additional documents with the Death Registration Certificate for accident claims. They are as below:

• Copy of FIR
• Post Mortem Report
• Police Inquest Report
• Police Conclusion Report / Final Report of Police.

The process to claim Scholarship:

Aam Aadmi Bima Yojana beneficiary member whose child will get the Scholarship need to submit an application form every half-yearly to the Nodal Agency.

• The Nodal Agency will complete the process of verification.
• Next, the Nodal Agency official will provide the list of beneficiary students to the concerned P&GS unit with the below details:
  • Name of the student
  • School’s name
  • Class
  • Member’s name
  • Master policy no.
  • Membership no.
  • NEFT details for direct payment.
• LIC will transfer the scholarship amount on July 1 and January 1 every year in the Account of the beneficiary student.

FAQs for the Scheme