Aam Aadmi Bima Yojana (AABY)| Aam Aadmi Insurance Scheme Benefits, Eligiblity, Documents and Claim Procedure – The Aam Aadmi Bima Yojana, a Social Security Scheme for citizens living in 48 specified vocational/ occupational groups/rural areas with landless households, was launched by the Government of India and is well-managed. On the 2nd of October, 2007, this group insurance system was implemented. The Life Insurance Corporation of India is also in charge of its administration (LIC). The Aam Aadmi Bima Yojana provides insurance coverage to a family’s sole earner or the family’s head.
The Ministry of Finance proposed merging both the Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY) Social Security Schemes under the supervision of the Government of India. Following the merger, the scheme was renamed ‘Aam Aadmi Bima’ on January 1, 2013. The Aam Aadmi Bima Scheme covers natural/accidental death, permanent entire disability, and partial permanent disability. Individuals living in rural areas and those living below the poverty level are included under the scheme.
Benefits of Aam Aadmi Bima Yojana
The benefits under Aam Aadmi Bima Yojana scheme are as follows:
- In the event of the insured’s natural death, the policy pays a death benefit of Rs.30,000 to the policyholder’s surviving beneficiaries or family members.
- In the event that the insured dies or becomes permanently disabled as a result of an accident resulting in the loss of both eyes or both limbs, or the loss of one eye and one limb, the policy pays Rs.75,000 to the policyholder’s remaining beneficiaries or family members.
- If the insured suffers a partial permanent handicap as a result of an accident that results in the loss of one eye or limb, the policy pays Rs.37,500 to the policyholder’s remaining beneficiaries or family members.
- This Yojana (AABY) assures that at least two of the family’s children receive continuous education. On a half-yearly basis, it offers a free scholarship of INR 100 per month to qualifying students in grades 9 to 12.
Features of Aam Aadmi Bima Yojana
The main features of the scheme are mentioned below:
- Fast assistance
- Simple claim process
- Enrolment process is easy
- Sponsored premium
Aam Aadmi Bima Scheme Cover Amount and Sum Assured
|In case of natural Death||Rs.30,000/-|
|In case of Accidental death||Rs.75,000/-|
|In case of Partial disability||Rs.37,500/-|
|In case of Permanent total disability||Rs.75,000/-|
|Scholarship||Rs.100/- per month per child|
Eligibility Criteria for Aam Aadmi Bima Yojana
- Applicants must be between the ages of 18 and 59.
- The applicant should ideally be the family’s head of household or one of the earning members of a BPL or marginally over the poverty line family (BPL) in a designated vocational group/rural landless household.
- A certain amount of documentation is also necessary.
- Only one family member will be eligible.
Required Documents for Aam Aadmi Bima Yojana (AABY)
There is certain documentation that is required to be eligible for the Aam Aadmi Bima Yojana (AABY) which are mentioned below:
- Name in the Voters List
- Ration Card
- Aadhaar Card (Unique Identification Card)
- Extract from the school and birth certificate
- Any identity card issued by the Government of India or any reputed employer
How to Apply for Aam Aadmi Bima Yojana
- To register in the Aam Aadmi Bima Yojana, the applicant must go to a Nodal agency that would help them with the process.
- A nodal agency can be any entity appointed by the state or national governments, the Union Territory of India, or even a non-governmental organization.
- To enroll, you must also mention the nomination.
VIA Application Form
- Every state government’s website has the Aam Aadmi Bima Yojana Form PDF or application instructions.
- The website can be used to learn more about the application procedure and to download the application form.
List of Occupations/Vocations Aam Aadmi Bima Yojana Covers
- Anganwadi teachers
- Firecrackers’ workers
- Manufacture of paper products
- Rural poor
- Transport drivers association
- Manufacture of wood products
- Safai karamcharisScheme for the urban poor
- Transport karamcharis
- Auto drivers or rickshaw pullers
- Food stuffs like sugar or khandsari
- Mineral products like earthen toys manufacture
- Safai karamcharis
- Unorganized workers covered under the Rashtriya Swasthya Bima Yojana
- Beedi workers
- Forest workers
- Overseas Indian workers
- Scheme for the urban poor
- Women associated with self-help groups
- Brick kiln workers
- Papad workers who are associated with SEWA
- Women of hilly areas
- Handicraft artisans
- Physically handicapped people who are self-employed
- Sheep breeders
- Chemical products like candle manufacture
- Handloom & Khadi Weavers/Handloom Weavers
- Plantation workers
- Salt growers
- Overseas Indian Workers
- Lady tailors
- Powerloom workers
- Tendu leaf collectors
- Unorganized workers covered under RSBY
- Coconut processors
- Leather and tannery workers
- Primary milk producers
- Printing products
- Construction workers
- Manufacture of leather products
- Rubber products
- Toddy tappers
- Coal products
Claim Process of Aam Aadmi Bima Scheme
The P&GS Unit of LIC will settle death or disability claims under the scheme by making direct payments to beneficiaries through NEFT or, if NEFT is not available, directly to the beneficiaries’ bank accounts with prior approval from the Competent Authority. The A/C payee cheque or claim can be paid by any other mode as determined by LIC.
If a member dies during the period of coverage and while the policy is in effect, his or her nominee must submit an application to the designated official of the Nodal Agency, along with a death certificate, for payment of the claim amount.
The claim papers must be verified by a designated official of the Nodal Agency and submitted along with the death certificate and a certificate stating that the deceased member was the head/earning member of a BPL/Marginally above BPL family working in one of the eligible occupations under the scheme.
The following requirements should be submitted with the application in the Nodal Agency:
- Claim Form duly completed in all respects
- Original death certificate along with a copy duly attested.
In the event of an accident benefit claim, the following extra requirements must be provided with the Death Certificate.
- Registration Certificate
- Copy of FIR
- Post Mortem Report
- Police Inquest Report
- Police Conclusion Report / Final Report of Police.
AABY Claim Procedure in Death
- In the case of the member’s death during the period of coverage and while the policy is in effect, his or her nominee must file an application.
- This application, along with a Death Certificate, shall be submitted to the Nodal Agency’s designated official for payment of the claim amount.
- The claim papers must subsequently be verified by the designated officer of the specific Nodal Agency.
- The official will then submit the documentation and application, together with the death certificate and a certificate stating that the dead member was the head/earning member of a BPL/Marginally above BPL family who worked in one of the scheme’s qualified occupations.
- The following documents must be submitted with the application in the Nodal Agency:
- Completed Claim Form in all respects
- Original death certificate and a duly attested copy
AABY Claim Procedure for Scholarships
- A member whose child is qualified for a scholarship must submit an application form to the Nodal Agency every half-year. The students will be identified by the Nodal Agency.
- The Nodal Agency will then forward the list of beneficiaries to the P&GS unit in charge, along with complete information such as the student’s name, school name, class, member’s name, master policy number, membership number, and NEFT details for direct payment.
- Every half-year, on July 1st and January 1st, LIC will credit the scholarship money to the beneficiary student’s account via NEFT.
- In the future, LIC/Government may decide on a different method of scholarship payment.
- Download AABY Scholarship Form – Click here
AABY Claim Procedure For Disability
- Handicap Claim Procedure: If a person has a total or partial disability, they can file a claim under the Aam Aadmi Bima Yojana. The application process is straightforward, and the individual does not have to become a financial burden on other family members.
- In order to file a disability claim, you must also provide supporting documentation that will help you substantiate your condition. The following documents can be used as evidence:
- Accident documentation, such as a police report, a video footage, or photographs.
- Medical certificate: It must be provided by a Government Civil Surgeon or a certified Government Orthopaedician and must specify the specifics of the accident, including the type of disability and limb loss of the member covered by the plan.
What is Aam Aadmi Bima Yojna?
Ans. LIC launched the Aam Aadmi Bima Yojana in India to give social security, health care, and financial assistance to India’s rural population who lack access to healthcare and drugs.
What is the Premium Fund for the Aam Aadmi Bima Yojana?
Ans. The “Aam Aadmi Bima Yojana Premium Fund” was formed by the Central Government to pay the Central Government’s contribution. LIC is in charge of this fund. A free add-on benefit in the form of a scholarship for children is also offered under the AABY.
Where can you apply for the Aam Aadmi Bima Yojana Scheme?
Ans. The Aam Aadmi Bima Scheme can be applied for at any of the recognised nodal agencies or through LIC.