Aam Aadmi Bima Yojana: Object, Benefits & Eligibility

Aam Aadmi Bima Yojana (AABY) is a government-sponsored social security scheme aimed at providing affordable life insurance coverage to people in the unorganized sector in India. The scheme was launched in 2007 and is operated by the Life Insurance Corporation of India (LIC).

The objective of the Scheme

The main objective of the scheme is to provide financial assistance to the economically weaker section in the event of the death or disability of the earning member of the family. The scheme targets people working in unorganized sectors such as agriculture, fisheries, dairy, handloom, construction and other similar occupations.

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Coverage

The scheme provides coverage of Rs 30,000 in case of natural death, Rs 75,000 in case of accidental death and Rs 37,500 in case of partial or permanent disability due to accident. Apart from this, the children of the insured person also get the benefit of a scholarship in case of his death.

Claim Process

To claim insurance coverage, the nominee must submit the claim form to the LIC branch office or authorized office within 30 days of the incident. The payment is made to the nominee’s bank account after the state government completes the claim process.

Benefits

Financial Assistance: Provides financial assistance to the family of the insured in case of his death or disability.
Affordable Premium: The premium of this plan is very affordable and is subsidized by the government.
Coverage of Natural Disasters: This plan also covers natural disasters like floods and earthquakes.
Easy Enrollment: The enrollment process is simple and easy, and enrollment can be done at any time.
Special Benefits for Women: Women get maternity benefits and coverage for female-headed families.

Eligibility

Under the Aam Aadmi Bima Yojana, the head of the family or the earning member aged 18 to 59 years is eligible for insurance coverage. The premium of this plan is shared by the central and state governments in a ratio of 50:50. The total premium is Rs 200 per person per year, out of which Rs 100 is borne by the Central Government, Rs 30 by the State Government and Rs 70 by the beneficiary. The premium amount is deducted from the beneficiary’s bank account through an Electronic Clearance System (ECS) or other means.

Age Limit: Individuals aged between 18 and 59 years.
Income Limit: Individuals belonging to families below the poverty line whose annual income does not exceed Rs 1,00,000.
Occupational Requirements: Landless agricultural labourers, rural artisans, fishermen, weavers, handicraft artisans and people engaged in similar occupations.
Social Security Scheme: Should not be covered under any other social security scheme.

Exclusions

Individuals employed in the organised sector.
Income Tax Payers.
Individuals are covered under other insurance schemes.
Individuals who are not the main earners of the family.
Individuals aged above 59 years.

Application Process (Offline)

Contact the nearest AABY centre or insurance agent to get the application form.
Fill out the application form including personal information, income, occupation and bank account details.
Attach the required documents like an Aadhaar card, age certificate, address certificate, bank account details, income certificate and occupation proof.
Submit the completed application form and supporting documents to the AABY center or insurance agent.
The insurance agent will verify the application and documents, and issue the policy certificate.
The policy certificate will be sent to the applicant’s address.
The applicant can pay the premium as per the policy terms.