LIC Aam Aadmi Bima Yojana - Eligibility, Vocations, AABY Claim Process

Gaurav Seth
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Gaurav Seth


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.


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:

  1. Age: The entry age of AABY is 18 years and the maximum age can be 59 yrs.
  2. Members Covered: One member who is the sole earner of the family is eligible to get the coverage.
  3. 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.  


Beedi workersBrick kiln workersCobblersCarpenters
FishermenHandloom weaversHamalsHandicraft artisans
Handloom and Khadi weaversLeather and tannery workersLady tailorsPhysically handicapped people who are self-employed
Papad workers who are associated with SEWAPrimary milk producersAuto drivers or rickshaw pullersSlat growers
Safai karamacharisTendu leaf collectorsForest workersScheme for the urban poor
SericultureForest workersPowerloom workersToddy tappers
Women of hilly areasTextileManufacture of wood productsManufacture of leather products
Food stuffs like sugar or khandsariManufacture of paper productsRubber and coal productsPrinting
Mineral products like earthen toys manufactureChemical products like candle manufactureTransport drivers associationAgriculturists
Rural poorTransport karamacharisFirecrackers’ workersConstruction workers
Aanganwadi teachersCoconut processorsPlantation workersKotwal
Sheep breedersWomen associated with self-help groupsOverseas Indian workersUnorganized workers covered under the Rashtriya Swasthya Bima Yojana


The AABY scheme covers the following:

  1. Accidental Death
  2. Natural death
  3. Accidental permanent total disability where the insured loses both eyes or limbs or sight or sight of one eye or one limb.
  4. 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 


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


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. 


  1. Identity Proof
  2. Address Proof
  3. Income Certificate
  4. Application Form
  5. Nominee Application Form


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:

  1. Death Certificate
  2. Policy Inquiry Report
  3. Post Mortem Report
  4. FIR Copy
  5. 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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