LIC’s Aam Aadmi Bima Yojana (AABY) Plan

LIC’s Aam Aadmi Bima Yojana (AABY)

The Aam Admi Bima Yojana is an initiative taken by the Indian Government. This scheme provides life cover and disability cover to the citizens of Indian who live in rural areas or live below the poverty line. Launched on 2 October, 2007, this Social Security Scheme is mostly for the landless rural population. An annual premium of INR 200 per individual, one earning member of the family or the head of the family, is shared by the State as well as the Central Government, so that he/she doesn’t need to pay anything. Under the Government of India, the Finance Ministry, the merger of Social Security Schemes and Janashree Bima Yojana, Aam Admi Bima Yojana, came into effect from 1 January, 2013. The AABY is also managed by the LIC.

The plan not only includes people who are below the poverty line but also the ones who live in far-off areas with no urban amenities. With the Indian economy gradually going through a makeover, there is an urgent need to pull up the condition of the people of rural India. To help such people by uplifting them, is the main objective of this scheme, that provides an insurance cover in case of death or accidental death and disability of the head of the family or the earning member.

Eligibility Criteria for Aam Aadmi Bima Yojana Plan

The members who wish to avail the insurance facility must be in the age group of 18 to 59 years. Either the head of the family or any member who earns in a family which is below poverty line (BPL), can also be a member of this scheme. If the applicant is above the poverty line but is identified to be under a rural landless household, he is also eligible for the scheme.
There is a requirement to submit the following documents to be a member of the AABY, Aam Admi Bima Yojana. These documents are :

• Voter’s ID Card
• Ration Card
• Aadhar Card
• Birth Certificate (Issued in School)
• Any other Government-Issued ID Card

Benefits of Aam Admi Bima Yojana

• Death Benefit
  If the policyholder dies during the term of the policy, then the nominee of the policy will receive a sum assured of INR 30,000.
• Permanent Disability Benefit
  In case of permanent disability of the policyholder, the claimant needs to submit evidence of the accident that has caused the disability. This certificate can either be from a Government Orthopaedician or a Government Civil Surgeon who has to state that the disability caused by the accident is the reason of the loss of limbs, and is permanent.
• Accidental Death Benefit
  In case the policyholder dies in an accident or suffers a disability, the following provisions are given to the members :

  1. On Death, due to Accident	INR 75,000
  2. Permanent Disability, due to Accident Loss of Eyes or 2 Limbs Loss of one Eye and one limb	INR 75,000
  3. Loss of One Eye or One Limb in an Accident	INR 37,500

• Nomination
  • It is imperative for every member to appoint a beneficiary to receive the death benefit in case of his accidental/natural death.
  • Filing the nomination form is an important part when filing the Membership Form. It should be ensured that the details of the nominee are correct, so that at the time of filing a claim, the nominee does not face any problems.
  • The Nomination Form is kept under the custody of the Panchayat/Nodal Agency and is forwarded to the LIC when the death or disability claims are to be made.
• Scholarship Benefits

  As a free Add-On benefit a Scholarship will be given to a maximum of 2 children of the nominee, who are studying in grades 9th to 12th, at the rate of INR 100 per month per child. This amount is payable bi-annually on 1.July and 1.January every year.

Joining the Aam Admi Bima Yojana

A Nodal Agency could be a Panchayat, NGO’s, Institutionalised Arrangements or a Self Help Group. When a request is made for enrolling into the Aam Admi Bima Yojana, the agency contacts Pension and Group Scheme office or a Branch Office of LIC and the proceedings are carried out.

How to apply for the Aam Admi Bima Yojana?

To apply for the Aam Admi Bima Yojana

• The applicant needs to visit his Nodal Agency.
• The Nodal Agency may be an institutionalised arrangement or any NGO appointed to manage the scheme.
• It could be the Central Ministerial Department or Union Territory of India.
• In case the applicant is from the ‘Rural Landless Household’, he needs to go to the appointed State Government or Union Territory.

Premium

• A premium of INR 200 is charged initially per year from every policyholder, for a life cover of INR 30,000. Out of this amount, 50% is subsidised by the Social Security Fund.
• For the Rural Landless Household, RHL, the remaining 50% of the premium is paid by the Union Territory/State Government.
• For the other Occupational Groups the remaining 50% of the premium is paid by the Member and Union Territory and/or Nodal Agency and/or the State Government.

Occupations and Vocations covered under Aam Aadmi Yojana Plan

• Beedi Workers
• Brick Kiln Workers
• Carpenters
• Cobblers
• Fishermen
• Hamals
• Handicraft Artisans
• Handloom Weavers
• Handloom & Khadi Weavers
• Lady Tailors
• Leather & Tannery Workers
• Papad Workers attached to ‘SEWA’
• Physically Handicapped Self Employed Persons
• Primary Milk Producers
• Rickshaw Pullers / Auto Drivers
• Safai Karamacharis
• Salt Growers
• Tendu Leaf Collectors
• Scheme for the Urban Poor
• Forest Workers
• Sericulture
• Toddy Tappers
• Powerloom Workers
• Hilly Area Women
• Food Stuffs like Khandsari / Sugar
• Textile
• Manufacture of Wood Products
• Manufacture of Paper Products
• Manufacture of Leather Products
• Printing
• Rubber & Coal Products
• Chemical Products like candle manufacturer
• Mineral products like earthen toys manufacturer
• Agriculturists
• Transport Drivers Association
• Transport Karmacharis
• Rural Poor
• Construction Workers
• Fire Crackers’ Workers
• Coconut Processors
• Aanganwadi Teachers
• Kotwal
• Plantation Workers
• Women Associated with Self-Help Groups
• Sheep Breeders
• Overseas Indian Workers
• Rural Landless Households
• Unorganized workers covered under RSBY

FAQ’s