Aam Aadmi Bima Yojana (AABY)

12 min read Posted on 24 June 2024

India is a developing/third-world country with a population of 1.3 billion people, which makes us the second-most populous country in the world. Due to such a large population, a large number of the population belongs to the low-income group. To fight this issue of poverty, the Government of India has launched various health, life, and term insurance schemes.

Aam Aadmi Bima Yojana is also one of them. Aam Aadmi Bima Yojana (AABY) is designed to provide financial assistance to people who fall under the low-income group in their time of need.

What is Aam Aadmi Bima Yojana (AABY)?

Aam Aadmi Bima Yojana (AABY) is a social security scheme launched on 2nd October 2007. Its main objective is to provide government term insurance policies to those who may not be able to save money due to low income, like cobblers, fishers, etc. Aam Aadmi Bima Yojana provides its benefits to the people in case of death due to an accident, natural causes, or in case of partial or permanent total disability.

Eligibility Criteria of Aam Aadmi Bima Yojana (AABY)?

To enroll in Aam Admi Bima Yojana (AABY), you must meet the following eligibility criteria. Below-mentioned is the eligibility criteria of aam aadmi party for your reference:

Particulars	Eligibility Criteria
Entry Age	18 to 59 years
Family Income	Below Poverty Line (BPL) families People belong to the rural landless household
Members Covered	Only one member of the family, and should be the sole earner of the family.

Features of Aam Aadmi Bima Yojana

Aam aadmi bima yojana (AABY) provides social security to the family below the poverty line. The following are the various key features of this scheme:

Affordability: The premium amount you have to pay under the Aam Aadmi Bima Yojana is significantly less. And on top of that, the concerned government will pay half of the premium. So, it makes the Aam Aadmi Bima Yojana more affordable.
Advance technology: Aam Aadmi Yojana is one such term insurance scheme that is highly digital. It serves people better track and monitor their data through a web-based system that allows quick exchange of information.
Prompt Assistance: The policyholder can contact the nearest Life Insurance Corporation (LIC) branch to resolve their queries. You can connect with them via call or email.

Benefits of Aam Aadmi Bima Yojana

Aam aadmi bima yojana (AABY) provides various benefits to the members of the yojana:

Natural Death: The entry age to become a member of Aam Aadmi Bima Yojana (AABY) is 18 to 59. If the assured member dies due to natural causes, LIC will pay the death claim of INR 30K.
Disability Coverage: Aam aadmi bima yojana (AABY) also offers coverage for all types of disabilities. The insured will get the following amount in case of disability:
1. Partial Disability: INR 37.5K
2. Permanent Disability: INR 75K
Accidental Coverage:Aam Aadmi Bima Yojana (AABY) provides coverage for accidental death. This means that if the assured person dies in an accident, the nominee will receive an amount of Rs.75K.
Scholarship Benefits: Under the Aam Aadmi Bima Yojana not only provides death and disability benefits but also ensures at least two children of the family get uninterrupted education. It provides a scholarship of INR 100 on a half-yearly basis to eligible students of classes 9th to 12th.

What are the Coverage Benefits Under Aam Aadmi Bima Yojana (AABY)?

Aam aadmi bima yojana (AABY) offers various coverage benefits to its eligible members. Below mentioned are the coverage benefits that aam admi bima yojana offers:

Death Benefit: A death certificate is required at the time of claim.
Accidental Benefit: A medical certificate is required that states the cause of death.
Disability Benefit: A government-issued medical certificate is required stating the nature of the disability.

Here is the coverage benefit amount that you will receive in case of the following mishap:

Coverage	Benefit
Death from natural causes	INR 30K
Accidental death	INR 75K
Partial disability	INR 37.5K
Permanent total disability	INR 75K
Scholarship	INR 100/ per month per child

What Are The Exclusions Under Aam Aadmi Bima Yojana (AABY)?

Below mentioned are the situations that will not be covered under Aam Admi Bima Yojana (AABY):

Attempt to Suicide or Self-Inflicted Injuries
Hospitalization Cost
Injuries/Accidents arising due to dangerous and adventurous sports
Disability or Death due to a war-like situation in the country
Injuries arising out of prohibited activities
Death or Disability due to Substance abuse
Mental Disorders

Vocations/Occupations Covered Under Aam Aadmi Bima Yojana (AABY)

Aam aadmi bima yojana (AABY) covers various vocations/occupations. Those who work in the following occupations are eligible to avail of the benefits of Aam Admi bima yojana:

Firecrackers’ workers	Anganwadi teachers	Rural poor	Manufacture of paper products	Transport drivers association
Fishermen	Agriculturists	Manufacture of wood products	Safai karamcharisScheme for the urban poor	Transport karamcharis
Auto drivers or rickshaw pullers	Foodstuffs like khandsari or sugar	Mineral products like earthen toys manufacture	Safai karamcharis	Unorganized workers covered under the Rashtriya Swasthya Bima Yojana
Forest workers	Beedi workers	Overseas Indian workers	Scheme for the urban poor	Women associated with self-help groups
Brick kiln workers	Hamals	Papad workers who are associated with SEWA	Sheep breeders	Women of hilly areas
Carpenters	Handicraft artisans	Physically handicapped people who are self-employed	Sericulture	Salt growers
Chemical products like candle manufacture	Handloom & Khadi Weavers/Handloom Weavers	Plantation workers	Kotwal	Overseas Indian Workers
Lady tailors	Cobblers	Powerloom workers	Tendu leaf collectors	Unorganized workers covered under RSBY
Coconut processors	Leather and tannery workers	Textile	Primary milk producers	Printing products
Construction workers	Manufacture of leather products	Rubber products	Toddy tappers	Coal products

Aam Aadmi Bima Yojana (AABY) Premiums

The Aam Aadmi Bima Yojana (AABY) was launched in India with the aim of helping people living below poverty line (BPL) and those who are slightly above it. The actual premium of this government scheme is INR 320. The eligible person will pay the 50% premium amount and the rest will be paid by the nodal agency, central government, or the state government.

Enrolling Process of Aam Aadmi Bima Yojana (AABY)

The enrollment process for Aam Aadmi Bima Yojana (AABY) is different from buying a standard insurance plan. Since it is a government insurance scheme, eligible persons must visit the nodal center for enrollment. A nodal center is an institutional arrangement set up by India's central government, state government, and union territory.

While applying for Aam Aadmi Bima Yojana (AABY), it is necessary to mention the name of the nominee as it is essential to file a claim. If the name of the nominee is not explicitly mentioned, then the family members cannot get the scheme's benefits.

Required Documents To Apply For Aam Aadmi Bima Yojana (AABY)

Below mentioned are the documents required to apply for the aam admi bima yojana (AABY):

Application Form
Nominee application form
Identity Proof
Address Proof
Income Certificate

Download Aam Aadmi Bima Yojana Application Form?

Applicants can download the application form for Aam Aadmi Bima Yojana (AABY) through the official website of any state government. For instance: If you live in Delhi, then you need to visit the official website of the Delhi Government to get relevant information about Aam Aadmi Bima Yojana. The information related to the application form is also available on the website.

Claim Process for Aam Aadmi Bima Yojana (AABY)?

The claim settlement process of aam aadmi bima yojana is quite simple and hassle-free compared to private term insurance policies. Below mentioned are all types of claim processes under AABY:

Claim Process for Death

If the assured dies within the policy tenure, the nominee can make a death claim on LIC.
The Nominee has to fill out a death claim form along with the death certificate of the insured at the nodal center.
The nodal officer verifies the claim form and the other documents.
Once the verification is done, the claim settlement process will be initiated.

Claim Process in Case of Accidental Death

Copy of First Investigation Report (FIR)
Police inquest report
Post mortem report
Conclusion report of the police

Claim Process in Case of Disability

You must submit the following documents to file a disability claim:

Proof of the accident (Documentary)
The qualified Government Orthopaedician/Government Civil Surgeon issued a medical certificate stating the type of disability.

Claim Process For Scholarship

The beneficiary must fill Aam Aadmi Bima Yojana (AABY) Scholarship Online Application Form.
The Nodal center will select qualified students.
The list of students will be forwarded to the concerned P&GS unit. Below mentioned are the essential details of the eligible students that you need to submit:
1. Name of the student
2. Name of the school
3. Name of the policyholder
4. Class in which the student is studying
5. AABY master policy number
6. Membership number
7. NEFT details

The Aam Admi Bima Yojana (AABY) Scholarship's monetary benefit will be transferred to the student's account via NEFT on 1st July and January of each year. Other payment options will be considered if no such account exists. A family that qualifies only has a maximum of two children enrolled in grades 9 to 12 to receive the award.

Contact details

Aam Aadmi Bima Yojana (AABY) is offered by LIC.

LIC is responsible for addressing customer grievances.

You can find the helpline number of aam admi bima yojana on the official website of LIC. Moreover, you can also visit the nearest branch of LIC for any assistance.