Aam Aadmi Bima Yojana

About Aam Aadmi Bima Yojana

The Indian government came up with a special program called the Aam Aadmi Bima Yojana (AABY) to help people without regular jobs get life insurance. This government-run program started in 2007. It’s managed by the Life Insurance Corporation of India (LIC). The AABY program has a straightforward goal. It wants to give families and people who are having financial difficulties financial security if the main earner in their family sadly passes away or becomes disabled. This program is made for people who work in jobs like farming, fishing, weaving by hand, building, and other similar trades. These jobs are often called “unorganized sectors.”

Objective Of This Scheme

• To provide financial support to families in case of the death of the earning member, helping them meet immediate and long-term financial needs.
• To offer affordable life insurance coverage to individuals who may not have access to or cannot afford private insurance due to their income limitations.
• Extending affordable life insurance to India’s unorganized workforce.
• Alleviating financial hardships caused by the demise or disability of the earning member.
• Targeting sectors such as agriculture, fishery, construction, and more.

Eligibility Criteria

• Age: Head of family or earning member aged between 18 and 59.
• Occupation: Engaged in unorganized sectors like agriculture, fishery, construction, etc.
• Income: Annual income should not exceed Rs 1,00,000 for households below the poverty line.
• Not Covered by Other Schemes: Not already benefiting from other government-run life insurance programs.
• Not in Organized Sectors: Excludes government employees, organized sector workers, income taxpayers, etc.

• Premium:
  • Total premium: ₹320 per year
  • Shared by:
    • Central Government: ₹160
    • State Government: ₹80
    • Beneficiary: ₹80 (payable through Electronic Clearing System (ECS) or other modes)

Additional notes:

• The premium amount of ₹320 was increased from ₹200 in 2010 due to high claim ratio.
• The scheme is not available in all states and union territories of India.
• You can find more information and application details on the website of the Ministry of Labour and Employment, Government of India, or by contacting your local LIC branch.

Benefits

1. Financial Aid: Support to the family in the case of death or disability of the insured member.
2. Affordable Premiums: Low premiums, subsidized by the government, ensuring accessibility.
3. Calamity Coverage: Protection against natural calamities like floods, earthquakes, etc.
4. Easy Enrollment: The enrollment process is simple, and individuals can join anytime.
5. Women-Centric: Special benefits for women, including maternity coverage.

• Death Benefit:
  • ₹30,000 for natural death
  • ₹75,000 for accidental death
• Disability Benefit:
  • ₹37,500 for permanent partial disability due to accident
  • ₹75,000 for permanent total disability due to accident
• Scholarship Benefit: Free add-on scholarship of ₹100 per month for up to two children studying between 9th and 12th standard (payable half-yearly)

Required Documents

1. Aadhaar Card: Proof of identity.
2. Age Proof: Document verifying age.
3. Address Proof: Document confirming the address.
4. Bank Account Details: Active bank account information.
5. Income Certificate: Proof of annual income.
6. Occupation Proof: Document validating occupation.

OCCUPATIONS/ VOCATIONS COVERED UNDER THE YOJANA:

SL.NO	OCCUPATION	SL.NO	OCCUPATION
1	Beedi Workers	24	Food Stuffs like Khandsari / Sugar
2	Brick Klin Workers	25	Manufacture of Wood Products
3	Carpenters	26	Textile
4	Coblers	27	Manufacture of Paper Products
5	Fisherman	28	Manufacture of Paper Products
6	Hamals	29	Manufacture of Leather Products
7	Handicraft Artisans	30	Printing
8	Handloom Weavers	31	Rubber & Coal Products
9	Handloom & Khadi Weavers	32	Chemical Products like candle manufacture
10	Lady Tailors	33	Mineral products like earthen toys manufacture
11	Leather & Tannery Workers	34	Agriculturists
12	Papad Workers	35	Transport Drivers Association
13	Physically Handicapped Self Employed Persons	36	Transport Karmacharis
14	Primary Milk Producers	37	Rural Poor
15	Rickshaw Pullers / Auto Drivers	38	Construction Workers
16	Safai Karamacharis	39	Fire Crackers’ Workers
17	Salt Growers	40	Coconut Processors
18	Tendu Leaf Collectors	41	Aanganwadi Teachers
19	Forest Workers	42	Kotwal
20	Sericulture	43	Plantation Workers
21	Toddy Tappers	44	Women Associated with Self-Help Groups
22	Powerloom Workers	45	Women Associated with Self-Help Groups
23	Hilly Area Women	46	Overseas Indian Workers
		47	Rural Landless Households
		48	Unorganized workers covered under RSBY

How To Apply

Offline Application:

1. Visit the nearest Aam Aadmi Bima Yojana centre or insurance agent.
2. Fill in the application form with accurate details – personal info, income, occupation, and bank details.
3. Attach necessary documents – Aadhaar card, age proof, address proof, bank details, income certificate, and occupation proof.
4. Submit form and documents.
5. The insurance agent verifies and issues the policy certificate.
6. The policy certificate is sent to the registered address, with a copy retained by the insurance agent.
7. now you have to pay Premium payment annually or as per policy terms.

Death Claim:

1. Nominee applies with Death Certificate.
2. Submit application to the Nodal Agency.
3. Nodal Agency verifies claim papers.
4. Officer submits documents along with death certificate and family status certificate.
5. Nodal Agency submits:
   • Completed Claim Form
   • Original death certificate (attested copy)

Accident Claim:

1. Along with Death Registration Certificate, submit:
   • Copy of FIR
   • Post Mortem Report
   • Police Inquest Report
   • Police Conclusion Report

Scholarship Claim:

1. Member’s child eligible for scholarship fills application form.
2. Nodal Agency identifies students.
3. Nodal Agency submits student list to P&GS unit with details.
4. LIC credits scholarship to student’s account by NEFT every half year (1st July and 1st January).

Payment Procedure:

• LIC settles claims directly through NEFT.
• If NEFT not available, money transferred to beneficiaries’ bank account.
• A/C payee cheque or other modes as approved by LIC, with competent authority’s prior approval.