ABOUT AAM AADMI BIMA YOJNA

Aam Aadmi Bima Yojna popularly known as AABY is a scheme launched in October 2007 primarily focused to provide assistance to the rural poor with no or very little access to basic services such as pharmacies and hospitals. This is a social security government-sponsored scheme that offers life cover to sole earners of the families under the poverty line along with rural households with no land. Coverage is provided to the insured against partial or total disability as well as natural or accidental death. The state governments share the half annual premium which is INR 200 per person and this, in turn, saves the insured the money towards payment of the premium. In some cases, the remaining portion is also borne by the state government or nodal agency.

ELIGIBILITY CRITERIA FOR AABY

This scheme is not at the disposal of each and every Indian citizen. You must fulfill certain aspects and criteria to enroll in this scheme. Here is the criteria:

Age: The entry age of AABY is 18 years and the maximum age can be 59 yrs.
Members Covered: One member who is the sole earner of the family is eligible to get the coverage.
Income:

I. The insured should belong to a BPL family. (Below Poverty Line)

Ii. People belonging to a rural landless household.

Iii. People slightly above the BPL are a part of any vocational group defined in the scheme.

OCCUPATION/VOCATIONS COVERED UNDER AABY

Beedi workers	Brick kiln workers	Cobblers	Carpenters
Fishermen	Handloom weavers	Hamals	Handicraft artisans
Handloom and Khadi weavers	Leather and tannery workers	Lady tailors	Physically handicapped people who are self-employed
Papad workers who are associated with SEWA	Primary milk producers	Auto drivers or rickshaw pullers	Slat growers
Safai karamacharis	Tendu leaf collectors	Forest workers	Scheme for the urban poor
Sericulture	Forest workers	Powerloom workers	Toddy tappers
Women of hilly areas	Textile	Manufacture of wood products	Manufacture of leather products
Food stuffs like sugar or khandsari	Manufacture of paper products	Rubber and coal products	Printing
Mineral products like earthen toys manufacture	Chemical products like candle manufacture	Transport drivers association	Agriculturists
Rural poor	Transport karamacharis	Firecrackers’ workers	Construction workers
Aanganwadi teachers	Coconut processors	Plantation workers	Kotwal
Sheep breeders	Women associated with self-help groups	Overseas Indian workers	Unorganized workers covered under the Rashtriya Swasthya Bima Yojana

WHAT IS COVERED?

The AABY scheme covers the following:

Accidental Death
Natural death
Accidental permanent total disability where the insured loses both eyes or limbs or sight or sight of one eye or one limb.
Accidental permanent partial disability wherein the insures loses sight of one eye or one limb.

Furthermore, a free additional benefit named scholarship benefit is also provided and made available for up to 2 children (must be studying in classes 9th to 12th) of the insured.

The coverage amount for each coverage is as follows:

Contingency	Benefit
Accidental death	Rs. 75,000/-
Death from natural causes	Rs. 30,000/-
Partial Disability	Rs. 37,500/-
Permanent total disability	Rs. 75,000/-
Scholarship	Rs. 100/- per child per month

WHAT IS NOT COVERED?

Death or disability because of mental disorders
Suicide
Cost of hospitalization
Death or disability on account of taking part in adventurous or dangerous sports
Taking part in illegal activities
Death or disability due to war-like situation in the country
Loss of life or disability due to substance abuse

BENEFITS OF AABY

1. Affordable:

The premium of the AABY is very low, this makes the plan more affordable and the insured does not have to think about arranging the funds for paying the premium of this plan. Furthermore, half of the premium is borne by the state government. And in some specified groups, the remaining 50% of the is borne by the state/UT government, nodal agency, etc.

2. Immediate Assistance:

Queries and doubts of the insured can be easily solved by getting in touch with the nearest branch of LIC. You can even reach out to the concerned person over call or mail.

3. Additional Perks:

The AABY does not only provide disability and death benefits but also provides educational scholarships for two children. It offers a free scholarship amount of Rs. 100 each month on a half-yearly basis to children studying between 9th to 12th class.

4. Technologically advancement:

Technology has significantly assisted the administration to provide better services. AABY is one such scheme. All the data is monitored with the help of a digitalized web-based system that allows quick exchange of information when needed. This is also helpful at the time of settlement.

DOCUMENTS REQUIRED TO APPLY FOR AABY

Identity Proof
Address Proof
Income Certificate
Application Form
Nominee Application Form

CLAIM PROCEDURE UNDER AABY

1. Claim procedure in case of death:

The nominee will need to make an application
Nodal agency will ask for death certificate along with the application
The officer will verify the credibility and genuineness of the claim
Post the verification, the settlement will be done.

2. Claim procedure in case of Accidental death:

The following documents will be required in case the insured meets with an accidental death:

Death Certificate
Policy Inquiry Report
Post Mortem Report
FIR Copy
Police Final Report

3. Claim procedure in case of scholarship:

The insuree whose child is eligible for scholarship has to fill an application form every half year. This needs to be submitted to the nodal agency.
The child’s identification and verification should be done by the officer.
A list of the children qualified for the scholarship is submitted by the nodal agency with all the needful details
After every 6 months on 1st Jan and 1st July, the LIC credits the amount via NEFT or account transfer, to the beneficiary’s account.

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LIC’s New Endowment Plan (914)
Unit Linked Insurance Plans (ULIPs)
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LIC Tech Term Plan
LIC Jeevan Akshay Policy VII
LIC Term Plans
LIC Jeevan Amar Plan 855