What Is Aam Aadmi Bima Yojana: Features, Benefits, Coverage, Eligibility And How To Enrol

Health Insurance

The Government of India launched Aam Aadmi Bima Yojana (AABY), a social security scheme, in 2007 to extend healthcare facilities to low-income Indian families. This scheme is administered under the Life Insurance Corporation (LIC) and provides group insurance policies to individuals employed without a proper payroll. Here are all the details about Aam Aadmi Bima Yojana you are looking for. Read on!

Features of Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana was launched on October 2, 2007, by the Ministry of Finance in India to alleviate financial losses a family can suffer in unfortunate instances. Here are a few notable features of this scheme:

1. Low Premium

It becomes difficult for lower-income groups to arrange for an insurance cover owing to hefty premiums. Alternatively, the Aam Aadmi Bima Yojana premium amount is low, making it an affordable option. This is so because the Government bears half of the premium of this plan. 

2. Digital Process

The member data under this scheme are digitised and monitored by a web-based system. This allows fast exchange of information as per requirement. Therefore, one can enjoy the benefit of quick claim settlements under this Government-backed scheme. 

3. Prompt Services

The scheme, Aam Aadmi Bima Yojana, provides social security to low-income families in India promptly. For instance, in case of queries, members can visit their nearest LIC branch or get in touch with the designated representative via mail or call. 

Benefits of Aam Aadmi Bima Yojana

1. Coverage for Death Due to Natural Causes

If an insured individual under this scheme dies from natural causes, the nodal agency will settle a claim. 

2. Disability Coverage

If the head of a family suffers from permanent, partial or total disability, they might require financial assistance. This insurance plan covers disability of any form and allows a member to claim funds. 

3. Accidental Death Coverage

In any unforeseen situation, AABY scheme provides coverage for accidental death. 

4. Additional Benefits

Apart from providing death and disability benefits, this Government scheme ensures at least 2 children in the member family receive continuous education without a break. Further, the scheme offers scholarship benefits to eligible children studying between the 9^th and 12^th standards on a half-yearly basis.

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Also Read: PMJAY (Pradhan Mantri Jan Arogya Yojana): Everything You Need To Know

Why Invest in Aam Aadmi Bima Yojana?

Here are the reasons why you should invest in AABY scheme:

• Cost-effective: You have to pay very low premiums and almost half of the premiums are borne by the government.
• Technologically Adept: The scheme is technologically adept as well. Most of the information and functions are available online and can be easily accessed. 

Aam Aadmi Bima Yojana Coverage

After entering the Aam Aadmi Bima Yojana beneficiary list, one can claim the following funds under certain conditions. 

Given below is a table listing the coverage and sum assured:

However, there are certain exclusions under AABY under which one cannot claim monetary assistance. They are the following:

• Hospitalisation cost
• Mental disorder disability, or death due to such causes 
• Suicide 
• Death or disability due to war-like circumstances in the country 
• Members taking part in adventure sports 
• Individuals involved in illegal activities 
• Death or disability due to substance abuse. 

Apart from this, 48 vocational groups are identified under this scheme, and the members belonging to these groups can avail themselves of the benefits offered. 

List of Occupations Covered under Aam Aadmi Bima Yojana

The occupations which are covered under AABY are listed below:

• Forest workers
• Plantations workers
• Brick kiln workers
• Karmacharis
• Papad workers attached to SEWA transport
• Textile
• Self-employed
• Beedi workers
• Food items such as khandsari/ sugar
• Cnstruction workers
• Carpenters
• Safai karamcharis
• Coconut processor
• Cobblers
• Rickshaw pullers/ auto drivers
• Manufacturer of paper items
• Sericulture
• Fisherman
• Manufacturer of leather products
• Primary milk producers
• Sheep breeders
• Hamals
• Hilly area women
• Printing press workers
• Handicraft artisans
• Unorganised workers covered under RSBY
• Toddy tappers
• Rubber and coal products
• Women associated with self-help groups
• Handloom weavers
• Handloom and khadi weavers
• Candle manufacturers
• Overseas Indian workers
• Earthen toys manufacturer
• Powerloom workers
• Lady tailor
• Firecrackers worker
• Agriculturists
• Salt growers
• Transport drivers association
• Tendu leaf collectors

AABY Premiums

Ideal for the Below Poverty Line (BPL) category, this Government-backed scheme offers low premiums in terms of annual payments. A member needs to bear only 50% of the amount per year to avail of the coverage under this plan. The Government’s Social Security Fund bears the rest of the premium. 

However, if an individual belongs to a rural landless household, the State Government or the Union Territory pays this remaining half. 

Also Read: Cashless Health Insurance – Definition, Process & Benefits

Steps to Download Aam Aadmi Bima Yojana Application Form Online

To download the AABY application form online you have to follow the given steps:

Step 1: Visit the official website of the respective state government

Step 2: You will find the form online in PDF format 

Step 3: Download the form. 

How To Enrol for Aam Aadmi Bima Yojana?

One can easily enrol for Aam Aadmi Bima Yojana by visiting any of the nearest Nodal Agencies allocated to carry out the enrolment process.

Steps to enrol for AABY are as follows-

Step 1- Download the enrolment form for Aam Aadmi Bima Yojana from the relevant Government website and fill it.

Step 2- Visit the allocated Nodal agency to carry out the enrolment procedure.

Step 3- Finally, submit the documents required to enrol along with the application form to complete the procedure.

Eligibility Criteria for Aam Aadmi Bima Yojana

Applicants will find their names on the Aam Aadmi Bima Yojana list only after fulfilling the following eligibility parameters: 

1. Individuals 18 – 59 years of age are eligible to obtain benefits under this scheme. 
2. Those belonging to BPL or slightly above the poverty line and belong to any of the 48 vocational groups or rural landless households. 
3. Any member of the family who is also a breadwinner can enrol under this scheme. 

Those failing to satisfy these eligibility parameters can alternatively apply for other cost-effective insurance policies.

Documents Required for Aam Aadmi Bima Yojana

Here is a list of documents an applicant must furnish for successful registration:

• Application form
• Nominee application form 
• Identity proof such as Aadhaar, Voter ID, etc. 
• Valid age proof such as ration card, school certificate, etc. 
• Proof of address
• Income certificate 

Aam Aadmi Bima Yojana Claim Process

Depending on the contingency type suffered, the process of claiming under this scheme can vary. The supervising agency settles the claims via NEFT or any other payment mode to the beneficiary’s bank account. Here are the different types of claims and their respective procedures:

1. Natural or Accidental Death Claim Process

In case of a member’s demise, his or her nominee has to make a death claim. They need to fill up the Aam Aadmi Bima Yojana claim form for death and submit it along with the death certificate. 

Nonetheless, in case of accidental death, nominees should also attach a copy of the FIR filed with the local police, police inquest report, post mortem report, and police’s final report. After successful verification of a nodal agency, one can receive the amount in his/her account. 

2. Claim Process for Disability

An insured member can claim for AABY upon providing documents like proof of accident and medical certificate. 

3. Scholarship Benefit Claim Process

A member’s child who qualifies for scholarship benefits must fill in the application form. They need to fill up this form half-yearly and provide it to the nodal agency. Finally, the nodal agency will identify the eligible students and offer them benefits. The students will receive the amount every half year on January 1 and July 1. 

Once the claim process is complete, one can check the Aam Aadmi Bima Yojana claim status by visiting the nodal agency’s official website. 

Also Read: Features and Benefits of Different Types of Health Insurance Policies

Address and Helpline Number for Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana is administered under LIC. So one can avail the benefits of this scheme or apply by visiting the nearest LIC office. Also one can contact the LIC office for any assistance.

Final Word

To conclude, prior knowledge regarding Aam Aadmi Bima Yojana will help members secure their finances and future. As India is a developing country, there are many who do not have fixed income or any income for that matter. Therefore, the Government launched this scheme to reduce poverty and assist applicants with an affordable insurance program. 

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Frequently Asked Questions

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.