Aam Aadmi Bima Yojana is one of the most important government schemes being implemented to cater to the social security benefits of workers in the unorganised sector. With this, it charges low premiums, provides comprehensive coverage, and guarantees that families of insured persons have their financial needs met during hard times.
Read the article to learn more about the Aam Admi Yojana, ranging from its meaning, the Aam Aadmi Bima Yojana launched on, and objectives to eligibility and the process of applying, and the Aam Aadmi Bima Yojana status check.
Overview
The table below showcases the key highlights of the Aam Aadmi Bima Yojana scheme:-
| Scheme Name | Aam Aadmi Bima Yojana |
|---|
| Aam Aadmi Bima Yojana launched on | 2007 |
| Administered by | Life Insurance Corporation of India (LIC) |
| Target Beneficiaries | Unorganised sector workers |
| Age Limit | 18 to 59 years |
| Total Premium | ₹200 per person per annum |
| Central Government Contribution | ₹100 |
| State Government Contribution | ₹30 |
| Beneficiary Contribution | ₹70 |
Read More: Gambhir Bimari Sahayata Yojana: Health Security For Construction Workers
What Is Aam Aadmi Bima Yojana?
The Aam Aadmi Bima Yojana scheme is a life insurance scheme targeted at low-paid workers in the unorganised sector and the Aam Aadmi Bima Yojana launched on the year 2007. It protects against death and disability and operates under the LIC of India. The premium is very cheap because the government subsidises it for everyone.
What Is Covered Under AABY?
There is coverage in the event of natural death, accidents, and disabilities under Aam Admi Yojana. Below is the coverage offered under different conditions:
| Coverage Type | Sum Assured |
|---|
| Natural Death | ₹30,000 |
| Accidental Death | ₹75,000 |
| Partial Disability | ₹37,500 |
| Total Disability | ₹75,000 |
| Scholarship | ₹100/month per child (up to 2 children in grades 9-12) |
What Is Not Covered Under Aam Aadmi Yojana?
The government scheme does not cover death due to suicide, drug overdose, or injuries caused by risky activities like adventure sports. Natural deaths are covered, but not deaths due to pre-existing diseases.
Some of the situations that are not included in AABY are as follows; These include:
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Hospitalisation expenses
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Suicide
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Death due to substance abuse
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Dying or getting crippled (disabled) while indulging in life-threatening adventures or war-like conditions
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Psychiatric disorders or involvement in illicit practices
How To Claim Aam Aadmi Bima Yojana?
To claim insurance for the Aam Aadmi Bima Yojana, the insured's nominee must submit a claim form along with relevant documents like death or disability certificates to the nearest LIC branch or authorised office within 30 days of the incident. The claim is processed, and the amount is directly transferred to the nominee’s bank account.
Read More: Bina Mulya Samajik Suraksha Yojana
Features
The Aam Aadmi Yojana provides life insurance coverage for rural and economically weaker sections of society. It offers accident insurance and scholarships for two children per family up to class 12.
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Affordable Premiums: The government subsidises the cost, making it accessible to everyone.
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Financial Assistance: Offers coverage in case of death or disability.
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Support for Women: Special benefits for female-headed households.
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Scholarship Benefit: Children of the insured receive a scholarship if the insured dies.
What Are The Benefits Of Aam Aadmi Bima Yojana?
Beneficiaries of Aam Aadmi Bima Yojana receive ₹30,000 for natural death, ₹75,000 for accidental death and ₹1.5 lakhs for permanent disability. A scholarship of ₹600 per child is also provided to eligible children.
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Financial Assistance: Supplements the income of the family of the insured in case of his/her death or total and permanent disability.
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Subsidised Premiums: Puts a favourable and affordable price of life insurance policies within the reach of every client.
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Covers Natural Calamities: Insurance widens to events such as flooding and the occurrence of an earthquake.
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Scholarship Benefit: Offers Rs. 100 per month for up to two children who are between 9th and 12th standard of education.
Read More: Mahatma Jyotiba Phule Jan Arogya Yojana
What Is The Eligibility Criteria For The Aam Aadmi Bima Yojana?
The government scheme is available to individuals aged 18 to 59 years, belonging to below-poverty-line families or families with marginal incomes involved in specified occupations.
The following are the eligibility criteria for the Aam Aadmi Bima Yojana:-
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Age: Between 18 and 59 years.
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Income: The applicants’ annual income should not be more than Rs. 1,00,000.
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Occupation: It is required that applicants be engaged in unorganised sectors such as agriculture as an employer, fishery, construction and the rest.
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Social Security: No other schemes of social security such as NPS or ESI should apply to it.
Exclusions
People above 59 years, individuals with stable and high incomes, and those involved in non-specified occupations are excluded from the scheme. AABY does not cover individuals who are:
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Working in the organised sectors.
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Income taxpayers.
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Above 59 years of age.
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They are already benefiting from other insurance schemes which are in existence.
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Not the primary breadwinner.
Occupation Included In The Yojana
The Aam Aadmi Bima scheme covers occupations like agricultural labourers, fishermen, artisans, beedi workers, and individuals engaged in similar unorganised sectors.
| Sector | Occupations |
|---|
| Agriculture & Rural | Primary Milk Producers, Sheep Breeders, Rural Poor, Rural Landless Households, Agriculturists, Toddy Tappers, Plantation Workers, Forest Workers, Salt Growers |
| Handicrafts & Weaving | Handloom Weavers, Khadi Weavers, Sericulture, Handicraft Artisans, Manufacture of Wood Products, Manufacture of Leather Products |
| Construction & Labor | Brick Kiln Workers, Construction Workers, Carpenters, Hamals, Safai Karamcharis |
| Transport & Self-employed | Rickshaw Pullers/Auto Drivers, Transport Drivers Association, Overseas Indian Workers, Self-employed Persons |
| Manufacturing & Processing | Beedi Workers, Fishermen, Coconut Processors, Manufacture of Paper Products, Rubber & Coal Products, Chemical Products (e.g., candle making), Food Processing (e.g., Khandsari/Sugar), Mineral Products (e.g., earthen toys manufacture), Fire Crackers’ Workers |
| Textile & Leather | Textile Workers, Leather & Tannery Workers, Powerloom Workers, Papad Workers (SEWA attached), Lady Tailors |
| Healthcare & Education | Anganwadi Teachers, Physically Handicapped Workers, Women Associated with Self-Help Groups, Hilly Area Women |
| Miscellaneous | Tendu Leaf Collectors, Cobblers, Karmacharis, Safai Karamcharis, Printing Workers |
How To Do Online And Offline Registration?
For Offline registration of Aam Aadmi Bima Yojana, visit the nearest Life Insurance Corporation (LIC) office or Common Service Centre (CSC), fill out the application form, and submit the required documents like proof of identity and occupation.
To Register Offline For The AABY Scheme, Follow These Steps:
Step 1:
Collect the application form from the nearest nodal agency or LIC office.
Step 2:
Fill out the form and attach the required documents.
Step 3:
Submit the form to your nearest LIC office.
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Step 4:
Nominate a beneficiary, which is essential for claiming benefits.
What Is The Application Process For The Aam Aadmi Bima Yojana?
Applicants can apply through their respective Gram Panchayats, Block Offices, or CSCs by filling out the form and providing necessary documentation like income and occupation proofs.
Step 1: Get the application form from the nearest AABY centre or insurance agent.
Step 2: Please complete the given information and enclose the following documents.
Step 3: Take the form, complete it, and submit the same at the nearest LIC office.
Step 4: After validation, the policy certificate will be released.
Documents Required
Essential documents include an Aadhaar card, an income certificate, proof of occupation, and a bank account passbook for claim settlements.
Steps To Claim Benefits
In the event of a claim for Aam Aadmi Bima Yojana, beneficiaries must submit the LIC Aam Aadmi Bima Yojana claim form, death or disability certificate, insurance policy, and identification proof to the LIC office. The claim process typically takes up to 30 days for settlement.
Step 1: The LIC Aam Aadmi Bima Yojana claim form has to be submitted along with relevant papers, like a death or disability certificate.
Step 2: Any attempt must be made in writing within the next thirty days following the occurrence of the said event.
Step 3: Once the details of the claim have been confirmed, LIC will process the same.
Step 4: The amount will be directly credited to the account of the nominee.
Read More: Pradhan Mantri Jeevan Jyoti Bima Yojana PMJJBY
Conclusion
In conclusion, Aam Aadmi Bima Yojana helps provide social security to the workers of the unorganised sector of India. This is because the scheme offers fairly low premiums for a wide range of coverage to make sure the financial burden of the insured workers’ families is well catered for during the worst times. In this emerald scheme, qualifying employees must subscribe to the system to guarantee the future of their family.
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