Aam Aadmi Bima Yojana

India is the world’s second-most populous country, classified as a developing nation. A significant portion of its population belongs to the low-income category. To address poverty, the Indian government has introduced various schemes, and the Aam Aadmi Bima Yojana (AABY) is one such initiative designed to provide financial assistance in times of need.

What is Aam Aadmi Bima Yojana?

Aam Aadmi Bima Yojana, launched on October 2, 2007, is an Indian social security scheme aimed at low-income families. It benefits individuals like fishermen, car drivers, cobblers, and others who are typically not on a formal payroll. Due to their low income, these individuals may not be able to save for major events such as death or disability. AABY provides financial aid to help them cope with such unfortunate circumstances.

Eligibility Criteria

Not every Indian citizen is eligible for the Aam Aadmi Bima Yojana. To enroll, an applicant must meet specific criteria:

• Entry Age: Applicants must be between 18 and 59 years of age.
• Income: The applicant should belong to a Below Poverty Line (BPL) family or a rural landless household.
• Members Covered: One member of the family is eligible for coverage, provided they are the sole earner.

Features of Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana provides social security to people from low-income families. The plan has the following features:

Benefits of Aam Aadmi Bima Yojana

AABY provides the following benefits to its members:

1. Death due to Natural Causes

   The Aam Aadmi Bima Yojana covers individuals between 18 and 59 years. If a member dies due to natural causes, LIC pays a Death Claim of INR 30,000.

2. Disability Benefits

   A family member’s disability can be a huge shock, especially if they are the sole breadwinner, leading to emotional and financial distress. AABY provides financial support to the household.

3. Disability Claim Amounts

   • Partial Disability: INR 37,500
   • Permanent Disability: INR 75,000

4. Accidental Death and Disability Benefits

   Accidents are unpredictable and can have serious consequences. Aam Aadmi Bima Yojana covers accidental death, and the nominee receives INR 75,000 under this coverage.

5. Scholarship Benefits

   This plan ensures that up to 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.

What is Covered under Aam Aadmi Bima Yojana?

Aam Aadmi Bima Yojana provides coverage to eligible members in the event of an unfortunate incident. Here’s what is covered under the policy:

• Death due to Natural Causes: A death certificate is required at the time of claim.
• Death due to Accidents: A medical certificate showing the cause of death as an accident is required at the time of claim.
• Partial Disability or Permanent Total Disability: A medical certificate from a government medical practitioner, indicating the nature of the disability, will be required at the time of claim.

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

The scheme covers a wide range of low-income occupations, making it easier to identify eligible individuals. Those working in the following sectors are eligible to avail of AABY benefits:

Aam Aadmi Bima Yojana Premiums

The Aam Aadmi Bima Yojana was introduced to help individuals falling Below the Poverty Line (BPL) in India, as well as those slightly above it. The actual premium for this Yojana is INR 320. However, depending on the region, the premium payment responsibility is decided between the Central Government, State Government, or a Nodal Agency. This structure ensures that individuals from low-income backgrounds can access essential financial protection without financial burden.

What is Not Covered?

Here is a list of exclusions (things not covered) under Aam Aadmi Bima Yojana:

• Attempted suicide or self-inflicted injuries
• Injuries or accidents arising from dangerous and adventurous sports
• Death or disability due to war or war-like situations in the country
• Mental disorders
• Loss of life or disability due to substance abuse
• Injuries arising from illegal activities

How To Enroll In Aam Aadmi Bima Yojana?

The enrollment process for the Aam Aadmi Bima Yojana differs from buying a standard insurance plan. As it is a national scheme, applicants must visit an appointed Nodal Agency to complete the enrollment. Any institutional arrangement by the Central or State governments or Union Territory of India is considered a Nodal Agency.

When applying for this plan, you must include the nominee’s name, as this is essential for filing claims. If the nominee is not mentioned, family members may not be eligible for the plan’s benefits.

Documents Required To Apply for Aam Aadmi Bima Yojana

• Completed Application Form
• Proof of Identity
• Income Certificate (BPL/Rural Landless Household)
• Proof of Address
• Nominee Details/Form

How To Download Aam Aadmi Bima Yojana Application Form?

The AABY is an Indian government-sponsored social security scheme. The 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 these websites.

How To File a Claim for Aam Aadmi Bima Yojana?

For your convenience, we have outlined the claim settlement steps for various situations:

Claim Procedure for Death

Claim Procedure for Accidental Death

For accidental death claims, the following additional documents are required:

• Copy of FIR (First Information Report) filed with local police
• Post-mortem report
• Police inquest report
• Final police report

Once documents are verified, the death claim amount is paid to the nominee/beneficiary.

Claim Procedure for Disability

To file a disability claim, the policyholder must submit:

• Documentary proof of accident (if applicable)
• A medical certificate from a qualified Government Civil Surgeon or Government Orthopaedic Surgeon, certifying the insured's total or partial disability.

Claim Procedure for Scholarship Benefit

To claim the scholarship benefit, the beneficiary must:

• Complete the Aam Aadmi Bima Yojana Scholarship Application Form half-yearly and submit it to the designated Nodal Agency.
• The Nodal Agency will select eligible students. This scholarship provides INR 100 per month per child.
• The student list, including the following important details, will be forwarded to the concerned P&GS unit:
  • Name of the student
  • Name of the school
  • Class in which the student is studying
  • AABY master policy number
  • Name of the policyholder
  • NEFT details
  • Membership number
• The Aam Aadmi Bima Yojana scholarship amount will be processed via NEFT to the student's account on July 1st and January 1st each year.
• If such an account does not exist, other payment options will be considered.

The scholarship is offered to a maximum of two children per eligible family, studying between 9th and 12th grade.

Contact Information

LIC offers the Aam Aadmi Bima Yojana and is responsible for addressing customer grievances.

You can find the Aam Aadmi Bima Yojana helpline number on LIC's official website.

You can also visit your nearest LIC branch for assistance.