The Aam Aadmi Bima Yojana (AABY) is a social security scheme for rural landless households implemented by the Ministry of Labour & Employment, Government of India. The scheme provides insurance coverage to the head of the household or an earning member of the family in the age group of 18 to 59.
Aam Aadmi Bima Yojana - Introduction
The Aam Aadmi Bima Yojana (AABY) is a social security scheme launched by the Ministry of Labour & Employment, Government of India, and implemented through LIC. It provides death and disability coverage to members of 48 specific occupational/vocational groups, rural landless households, and unorganized workers.
Beneficiaries aged 18–59 years pay subsidized annual premiums of ₹200 for insurance coverage. Additionally, scholarships are granted for children studying in grades 9–12, ensuring holistic family welfare.
Benefits
- Life Insurance Coverage: Natural death: ₹30,000/-
- Death due to accident: ₹75,000/-
- Disability Benefits: Total permanent disability (loss of two eyes or two limbs) due to accident: ₹75,000/-
- Partial permanent disability (loss of one eye or one limb) due to accident: ₹37,500/-
- Scholarship: Two children of the beneficiary studying between 9th to 12th Standard shall receive ₹100/- per month (for each child half yearly – on 1st July and on 1st January, each year).
Annual Premium Amount: ₹200/- per member.
- Subsidy from Social Security Fund (SSF): 50% of the total premium (₹100/-) is subsidized by the Government of India through the Social Security Fund (SSF).
- Premium Payment for Rural Landless Households (RLH): The remaining 50% of the premium (₹100/-) is paid by the respective State Government or Union Territory.
- Premium Payment for Other Occupational Groups: The remaining 50% of the premium (₹100/-) is covered by a combination of contributions from the Nodal Agency, the Member, and/or the State Government/Union Territory.
Eligibility
- The applicant should be aged between 18 and 59 years.
- The applicant should normally be the head of the family or an earning member.
- The applicant’s family should be categorized as below the poverty line (BPL) or marginally above the poverty line.
- The applicant should belong to an identified occupational or vocational group.
- The applicant should be part of a rural landless household.
Application Process
- Death Claim Procedure:
- Step 1: The nominee of the deceased member submits a claim application to the designated official of the Nodal Agency along with the original death certificate and an attested copy.
- Step 2: The designated official verifies the submitted claim documents.
- Step 3: The Nodal Agency prepares a claim packet, including the completed claim form, the death certificate, and a certificate confirming the deceased was the head or earning member of a BPL or marginally above BPL family under eligible occupations.
- Step 4: The verified claim packet is forwarded to LIC for processing.
- Accident Claim Procedure:
- Step 1: The nominee submits an application along with the Death Registration Certificate and additional documents, including the FIR, Post Mortem Report, Police Inquest Report, and Police Conclusion Report or Final Report.
- Step 2: The Nodal Agency verifies the documents and forwards the claim to LIC for further processing.
- Scholarship Claim Procedure:
- Step 1: The member whose child is eligible for a scholarship fills out a scholarship application form twice a year and submits it to the Nodal Agency.
- Step 2: The Nodal Agency identifies the eligible students and prepares a list of beneficiaries.
- Step 3: The list, along with details such as the student’s name, school, class, member details, and NEFT information, is sent to LIC’s P&GS unit.
- Step 4: LIC disburses the scholarship amount directly to the beneficiary’s bank account through NEFT every half year on 1st July and 1st January.