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 is designed to provide death and disability coverage for members of 48 specific occupational/vocational groups, rural landless households, and unorganized workers. The scheme also includes a scholarship component for the children of beneficiaries studying in grades 9–12, ensuring a holistic approach to family welfare.
Benefits
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Life Insurance Coverage:
- Natural Death: ₹30,000/-
- Death due to Accident: ₹75,000/-
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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/-
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Scholarship Benefit:
- Two children of the beneficiary, studying in classes 9–12, receive ₹100/- per month each (disbursed half yearly on 1st July and 1st January).
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Premium Subsidies:
- Annual Premium: ₹200 per member.
- Subsidy from Social Security Fund (SSF): 50% of the total premium (₹100) is subsidized by the Government of India through the SSF.
- Premium Payment for Rural Landless Households (RLH): The remaining ₹100 is paid by the respective State Government or Union Territory.
- Premium Payment for Other Occupational Groups: The remaining ₹100 is covered by contributions from the Nodal Agency, the member, and/or the State Government/UT.
Eligibility
- Age:
Beneficiaries must be between 18 and 59 years of age. - Family Status:
Typically, the applicant should be the head of the family or an earning member. - Economic Criteria:
The applicant’s family should be categorized as Below Poverty Line (BPL) or marginally above BPL. - Occupational/Vocational Group:
The applicant must belong to one of the 48 identified occupational or vocational groups. - Rural Landless Households:
Beneficiaries should be part of rural landless households.
Application Process
The scheme offers different claim procedures based on the type of event. The primary application process is conducted offline.
Death Claim Procedure
- Submission:
- 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.
- Verification:
- The designated official verifies the submitted claim documents.
- Preparation of Claim Packet:
- The Nodal Agency compiles a claim packet including the completed claim form, the death certificate, and a certificate confirming that the deceased was the head or an earning member of a BPL or marginally above BPL family under eligible occupations.
- Processing:
- The verified claim packet is forwarded to LIC for processing.
Accident Claim Procedure
- Submission:
- The nominee submits an application along with the Death Registration Certificate, FIR, Post Mortem Report, Police Inquest Report, and Police Conclusion/Final Report.
- Verification:
- The Nodal Agency verifies these documents and forwards the claim to LIC for further processing.
Scholarship Claim Procedure
- Application:
- The beneficiary fills out a scholarship application form for each eligible child twice a year and submits it to the Nodal Agency.
- Beneficiary Identification:
- The Nodal Agency identifies eligible students and prepares a list of beneficiaries.
- Submission to LIC:
- The list, including details such as the student’s name, school, class, member details, and NEFT information, is sent to LIC’s P&GS unit.
- Disbursal:
- LIC disburses the scholarship amount directly to the beneficiary’s bank account through NEFT on 1st July and 1st January every year.
Documents Required
General Documents:
- Ration Card
- Extract from Birth Register
- Extract from School Certificate
- Voter’s List
- Identity card issued by a reputed employer or Government Department
- Unique Identification Card (Aadhaar Card)
For Death Claim:
- Original death certificate along with an attested copy
For Accident Claim:
- Copy of FIR
- Post Mortem Report
- Police Inquest Report
- Police Conclusion Report or Final Report of Police
Frequently Asked Questions
-
What is the “Aam Aadmi Bima Yojana (AABY)”?
AABY is a social security scheme providing insurance coverage for death and disability to eligible members of specific occupational groups, rural landless households, and unorganized workers. -
Who implements the AABY scheme?
The scheme is implemented through LIC under the Ministry of Labour & Employment, Government of India. -
What is the age limit for beneficiaries under AABY?
Beneficiaries must be between 18 and 59 years of age. -
Who is eligible to apply for AABY?
Eligibility includes being the head of the family or an earning member from a BPL or marginally above BPL family, belonging to one of the identified occupational groups, or being part of a rural landless household. -
What benefits does AABY provide in case of natural death?
In the event of natural death, AABY provides a death benefit of ₹30,000/-. -
What benefits are provided under AABY for disability?
For accidents resulting in total permanent disability, the benefit is ₹75,000/-, and for partial permanent disability, it is ₹37,500/-. -
What is the scholarship benefit under AABY?
Two children studying in grades 9–12 receive ₹100 per month, disbursed half-yearly. -
How are claims processed under AABY?
Claims are processed by submitting the necessary documents to the designated Nodal Agency, which verifies the claim and forwards it to LIC for processing. -
What documents are required for accident claims?
Documents include a copy of FIR, Post Mortem Report, Police Inquest Report, and Police Conclusion/Final Report. -
When are scholarships disbursed under AABY?
Scholarships are disbursed directly via NEFT on 1st July and 1st January each year.