Aam Aadmi Bima Yojana (AABY)
ActiveLaunched by
Ministry Of Labour and Employment
Launched Date
Launched On Oct 2, 2007
Available in
Scheme Description
The Aam Aadmi Bima Yojana (AABY) is a government-backed social security scheme launched by the Ministry of Labour & Employment and implemented through the Life Insurance Corporation (LIC) of India. Aimed at providing financial protection to workers in the unorganized sector, the scheme covers 48 specified occupational groups, as well as rural landless households. Individuals between the ages of 18 to 59 can enroll by paying an annual premium of ₹200, half of which is subsidized by the Government of India through the Social Security Fund (SSF). For rural landless households, the remaining half is covered by the respective State or Union Territory governments.
Under this scheme, beneficiaries receive ₹30,000 in case of natural death and ₹75,000 for accidental death. Disability benefits include ₹75,000 for total permanent disability (such as loss of both eyes or limbs) and ₹37,500 for partial disability (loss of one eye or limb). Additionally, to support the family’s educational needs, the scheme offers a scholarship of ₹100 per month for up to two children studying in classes 9 to 12, disbursed biannually. AABY stands out as a low-cost, high-impact initiative promoting social and economic security for the underprivileged working population.
Benefits
- •₹30,000 is provided in case of natural death of the insured member.
- •₹75,000 is given for accidental death.
- •₹75,000 is provided for total permanent disability (loss of two eyes or two limbs) due to an accident.
- •₹37,500 is provided for partial permanent disability (loss of one eye or one limb) due to an accident.
- •Scholarship benefit of ₹100 per month is provided to up to two children of the insured, studying in classes 9 to 12 (paid half-yearly in January and July).
- •Annual premium is ₹200 per member.
- •50% of the premium (₹100) is subsidized by the Government of India through the Social Security Fund (SSF).
- •For Rural Landless Households, the remaining ₹100 is paid by the respective State Government or Union Territory.
- •For other occupational groups, the remaining ₹100 is contributed by a mix of the Nodal Agency, Member, and/or the State/UT Government.
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.
Documents Needed
- •Aadhaar Card: For identity verification of the applicant.
- •BPL Certificate (if applicable): For Below Poverty Line families, to verify eligibility.
- •Passport-sized Photograph: Recent photograph of the applicant.
- •Ration Card: A copy of the ration card may be required for proof of residence and BPL status.
- •Age Proof: A document to verify the age of the applicant, as the scheme is generally for individuals aged between 18 and 59 years.
Application Process
- •Eligibility Verification: Check if the applicant belongs to the eligible categories (primarily BPL families, rural landless laborers, and other marginalized groups).
- •Approach Designated Agents: Visit the local branch of the designated insurance provider or approach the Common Service Centers (CSC) or the village-level agents appointed for the scheme.
- •Fill Out Application Form: Complete the application form with necessary details, provided by the insurance agent or representative.
- •Submit the Application: Submit the filled form to the designated agent or the concerned government office for processing.
- •Pay the Premium: The premium is either paid by the beneficiary (in certain cases) or through government subsidy for eligible families. Ensure payment is made.
- •Get Coverage Details: Once the application is processed, the applicant will receive the policy details, including the coverage amount and other benefits.
- •Policy Issuance: After successful verification, the insurance policy is issued, and the beneficiary is provided with a copy of the policy document.