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The Aam Aadmi Bima Yojana (AABY) is a social security initiative by the Government of India to Read More... provide insurance protection to eligible individuals from rural landless households and specific vocational groups. Read less

Details

Life is full of uncertainties, and having a safety net is crucial, especially for those in vulnerable professions or living in rural areas. The Aam Aadmi Bima Yojana (AABY) is a government scheme designed to offer just that – financial security and support for families facing difficult times.

What Is This Scheme?

The Aam Aadmi Bima Yojana, often called AABY, is a social security plan introduced by the Ministry of Labour & Employment, Government of India. It's managed by the Life Insurance Corporation (LIC) of India. This scheme focuses on providing insurance benefits, like cover for death and disability, to people working in various occupational groups, particularly those in rural landless households and other unorganised sectors. It also offers a helping hand for the education of their children.

Who Can Benefit From This Scheme?

AABY is primarily for individuals aged between 18 and 59 years who are the main earners or heads of their families. Eligibility extends to those belonging to identified occupational or vocational groups, and crucially, to families that are below or just above the poverty line and reside in rural landless households.

Why This Scheme Is Important

The AABY plays a vital role in strengthening the social security fabric of India. By offering insurance coverage at a very low premium, with significant government subsidy, it ensures that even the most vulnerable sections of society are protected against financial shocks arising from death or accidental disability. The added scholarship for children also promotes education and helps break cycles of poverty, ensuring a brighter future for the next generation.

Objective

The Aam Aadmi Bima Yojana (AABY) is a social security initiative by the Government of India to provide insurance protection to eligible individuals from rural landless households and specific vocational groups.

Benefits

Loan of upto ₹ 5,00,000.

Interest Subsidy on Short-Term Loans: 4% to farmers who promptly repay their loans.

Interest Subsidy on Long-Term Loans: Equal to the difference between a 4% interest rate and the normal rate charged by eligible Banks, in line with their policies. The subsidy is subject to a maximum limit of 8%.

Sources and references

Guidelines

Who Can Apply for AABY?

The applicant must be between 18 and 59 years of age.
The applicant should typically be the head of the family or an earning member.
The applicant's family should be classified as below the poverty line (BPL) or just slightly above it.
The applicant must belong to one of the specified occupational or vocational groups or be part of a rural landless household.

How To Apply for Aam Aadmi Bima Yojana

The application process for AABY is generally managed through designated nodal agencies, which could be state governments, specific ministries, or other institutional bodies. Interested individuals should inquire with their local authorities or the nodal agency responsible in their area for specific application forms and procedures. The Life Insurance Corporation (LIC) of India is the implementing body for this scheme.

Documents You Might Need

To apply for or claim benefits under AABY, you may need the following documents. It's best to check with the implementing agency for the exact list:

Proof of Identity and Age: Ration Card, Extract from Birth Register, Extract from School Certificate, Voter’s List, Identity card issued by a Government Department, or Aadhaar Card.
For Death Claims: Original Death Certificate (attested copy also required).
For Accident Claims: A copy of the FIR lodged with the police, Post Mortem Report, Police Inquest Report, and the Police Conclusion Report or Final Report.

FAQ’s

What exactly is the Aam Aadmi Bima Yojana (AABY)?

Aam Aadmi Bima Yojana (AABY) is a social security plan by the Indian Government that offers life insurance and disability cover to people in specific job categories, rural landless families, and workers in the unorganised sector.

How much does it cost to be part of the AABY scheme?

The annual premium for each member is ₹200. A significant portion of this premium, ₹100, is paid by the Government of India as a subsidy. The remaining ₹100 is usually covered by the State Government or Union Territory, especially for rural landless households.

What happens if the insured person dies accidentally under AABY?

If the insured person dies due to an accident, their nominee will receive ₹75,000/- as an insurance benefit.

Are there any educational benefits for children under this scheme?

Yes, the scheme provides a scholarship of ₹100 per month for up to two children of the beneficiary who are studying between 9th and 12th grades. This amount is paid twice a year.

Who is responsible for implementing the AABY scheme?

The Life Insurance Corporation (LIC) of India is in charge of implementing the Aam Aadmi Bima Yojana, often working with state governments and other nodal agencies.

What specific documents are needed if I want to claim benefits for an accident?

For accident-related claims, apart from other standard documents, you'll need to submit a copy of the FIR, the Post Mortem Report, the Police Inquest Report, and the final Police Report.

Can someone who is slightly above the poverty line still apply for AABY?

Yes, the scheme is open to individuals whose families are classified as below the poverty line (BPL) or marginally above the poverty line, provided they meet other eligibility criteria.

What if the insured person becomes permanently disabled due to an accident?

In case of total permanent disability resulting from an accident (like losing two eyes or two limbs), the beneficiary receives ₹75,000/-. For partial permanent disability (losing one eye or one limb), the benefit is ₹37,500/-.

What are the age requirements to join the Aam Aadmi Bima Yojana?

To be eligible for AABY, an individual must be between 18 and 59 years old.

How is the scholarship for children paid out?

The scholarship amount for eligible children is disbursed half-yearly, typically on July 1st and January 1st each year, directly to the student's bank account.