(Get upto 10% Online Discount*)
India is the world's second-most populous country. India is also classified as a developing nation. As a result, a large number of people belong to the low-income category. The Indian government has introduced various schemes for individuals to fight the serious issue of poverty. The Aam Admi Bima Yojana is one such scheme that was intended to provide financial help in times of need.
Aam Admi Bima Yojana was launched on October 2, 2007. It is an Indian social security scheme that aims at the low-income families of India. Fishermen, car drivers, cobblers, and others who are normally not on payroll can get the benefits from this scheme. Due to their low income, individuals may not consider saving money to prepare for a major event such as death or disability. The Aam Aadmi Bima Yojana (AABY) provides financial aid to the people to deal with such unfortunate circumstances.
Every Indian citizen is not eligible for Aam Aadmi Bima Yojana. To enroll in the scheme, an applicant must meet specific eligibility criteria. Here is the list of eligibility for your reference:
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
Know More About Term Insurance Companies
Know More About Life Insurance Companies
Aam Admi Bima Yojana provides social security to people belonging to low-income families. The plan has the following features:
Affordable
The premium cost of Aam Aadmi Bima Yojana is extremely low. This makes the plan more affordable, and you don’t have to think about arranging money for paying the premiums. Moreover, the government pays half of the premium cost.
Technologically Advanced Insurance
The government is trying to provide better services to the general public with the help of the advancement of technology. Aam Aadmi Bima Yojana is one such example. All members' data is digitized and tracked using a web-based system that enables quick transfer of information when needed. This proves to be helpful at the time of Claim Settlement too.
Prompt Assistance
Members can easily get their queries resolved by contacting the nearest Life Insurance Corporation (LIC) branch. You can reach out to the team via call, email or personal visit.
AABY provides the following benefits to the members of the plans:
The Aam Aadmi Bima Yojana covers people between the age group 18 to 59. If a member of this plan dies due to natural causes, LIC pays a Death Claim of INR 30,000.
A family member's disability comes as a huge shock to the rest of the family. If the person is the sole breadwinner, then the family may suffer emotionally as well as financially. AABY provides a financial boost to the household.
Accidents are unpredictable and can result in serious consequences. Aam Aadmi Bima Yojana covers Accidental Death & the nominee receives payment of INR 75000 under this coverage.
This plan ensures that at least two children in the family receive uninterrupted education. It provides a free scholarship of INR 100 per month to eligible students from grade 9 to grade 12 on a half-yearly basis.
Aam Aadmi Bima Yojana provides coverage to eligible members at the time of an unfortunate event. Take a look at what is covered under the policy:
The scheme covers a wide range of occupations, making it easier to identify those who are eligible. The following occupations are low-income occupations by nature, and those who work in these particular sectors are eligible to avail of the benefits of AABY.
| Anganwadi teachers | Firecrackers’ workers | Manufacture of paper products | Rural poor | Transport drivers association |
| Agriculturists | Fishermen | Manufacture of wood products | Safai karamcharisScheme for the urban poor | Transport karamcharis |
| Auto drivers or rickshaw pullers | Food stuffs like sugar or khandsari | Mineral products like earthen toys manufacture | Safai karamcharis | Unorganized workers covered under the Rashtriya Swasthya Bima Yojana |
| Beedi workers | Forest 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 | Sericulture | Women of hilly areas |
| Carpenters | Handicraft artisans | Physically handicapped people who are self-employed | Sheep breeders | Kotwal |
| Chemical products like candle manufacture | Handloom & Khadi Weavers/Handloom Weavers | Plantation workers | Salt growers | Overseas Indian Workers |
| Cobblers | Lady tailors | Powerloom workers | Tendu leaf collectors | Unorganized workers covered under RSBY |
| Coconut processors | Leather and tannery workers | Primary milk producers | Textile | Printing products |
| Construction workers | Manufacture of leather products | Rubber products | Toddy tappers | Coal products |
The Aam Admi Bima Yojana was introduced with an objective to help people who fall Below the Poverty Line (BPL) in India, as well as those who are just slightly above it. This Yojana's actual premium is INR 320. However, depending on the region, it is decided whether the premium would be paid by the Central Government, State Government or Nodal Agency.
This helps individuals who fall Below the Poverty Line to get the right kind of medical aid without constraints.
Here is a list of exclusions (things covered) of Aam Aadmi Bima Yojana:
The process of enrolling in the Aam Aadmi Bima Yojana is not the same as buying a normal Insurance Plan. Since it is a national scheme, the applicant must go to an appointed Nodal agency to complete the enrollment process. Any institutional arrangement by the Central or State governments or Union Territory of India is considered a Nodal Agency.
While applying for this plan you must include the nominee's name. This is necessary for filing claims. If the nominee of the policy is not mentioned, the family member may not be eligible for the plan's benefits.
The AABY is an Indian government-sponsored social security scheme. India is a secular country, where a huge diversity of people exists, who speak different kinds of languages.
Aam Aadmi Bima Yojana Form PDF or instructions to apply for the scheme are available on each State Government's official website. For example - If you live in Uttar Pradesh, you need to visit the website of the State Government of Uttar Pradesh to get all the relevant information.
Information related to the Application Form of Aam Aadmi Bima Yojana is also available on the websites.
This ensures convenience for different people who speak different languages.
For your convenience, we have enlisted Claim Settlement steps against the four possible situations which against which the claims can be filed:
Claim Procedure For Death
When the policyholder dies within the coverage tenure of the policy, the nominee can make a death claim on LIC.
The nominee has to fill a Death Claim Form and submit it along with the Death Certificate of the policyholder to the designated Nodal Agency.
The officer of the Nodal Agency checks and verifies the claim form.
Claim Procedure For Accidental Death
In addition to the above mentioned steps, certain additional documents are required to be submitted, in the case of Accidental Death.
Once the documents are verified, the death claim is paid to the nominee/ beneficiary.
Claim process for Disability
The policyholder can raise a claim for Disability by submitting the following documents:
Claim process for Scholarship Benefit
The policyholder can raise a claim for Disability by submitting the following documents:
It should be noted that the scholarship is only offered to a maximum of two children from an eligible family who is studying in between 9th or 12th grade.
The LIC offers the Aam Admi Bima Yojana & it is responsible for addressing customer grievances.
You can find the Aam Admi Bima Yojana Helpline Number on the official website of LIC.
You can also visit the nearest LIC branch for any kind of assistance.
See More Term Insurance Articles
See More Term Insurance Articles
April 20, 2024
Review: HDFC Life Insurance Term Policy HDFC Life Insurance Term Policy stands out as a beacon of financial security and peace of mind in the ever-changing landscape of life insurance offering...
April 8, 2024
I am very grateful to the insurance experts of PolicyX and Mr. Ankur, who kindly helped me settle the claim of Aegon Life Insurance. Thanks again, I& 039;ll always remember this favor.
April 8, 2024
I bought a Bajaj Allianz Life Insurance through PolicyX, and I must say the level of communication and assistance I have received has been truly impressive.
April 8, 2024
Got ICICI Pru iProtect Smart term insurance plan via PolicyX; so far, I& 039;ve hassle-free renewal service and have not faced any kind of nuisance.
April 8, 2024
The PNB MetLife Mera Term Plan Plus I& 039;ve bought it at a low premium, and it is fully satisfactory to me. The insurance expert of PolicyX is too polite, and their online buying facility red...
March 28, 2024
I would like to inform you that my maturity claims have been settled by SBI Life Insurance on 04.15.2024 and thanks all of you for helping me throughout the claim process.
March 28, 2024
I& 039;m writing this review to let you all know that I& 039;m very satisfied because I got my kotak mahindra life insurance policy today as a result of your team effort.
March 18, 2024
I had to add some riders to my Sbi life insurance, policy.com team helps to me to understand which rider is more important and which is not. Resulting helps me to save lots of money. Happy with...
Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.
