AAM AADMI BIMA YOJANA (AABY)

Dr. P. Natarajan
Associate Professor
PG & Research Department of Social Work
Hindusthan College of Arts & Science Coimbatore
Aam Admi Bima Yojana scheme

The Aam Admi Bima Yojana is a social

security scheme which was launched on 2nd
October 2007 to provide a group insurance
cover to individuals belonging to specified
groups.
The scheme provides insurance coverage
against natural and accidental deaths and
disablements.
On 1st January, the Aam Admi Bima Yojana
scheme was merged with the Janashree Bima
Yojana Scheme to provide a wider scope of
coverage to eligible individuals.
Salient features of the scheme

Natural death, accidental death, permanent partial disability

suffered due to an accident and permanent total disability suffered
due to an accident are covered under the scheme
The scheme covers the members of 48 groups which have been
identified for the purpose of coverage
The coverage amount is fixed and the amount depends on the
contingency suffered
The lump sum amount of coverage is paid in case of claim
The scheme is implemented through a nodal agency. A nodal
agency can be a State Government, a Department of Central
Ministry, Union Territory, an institutionalized arrangement or a
registered NGO that has been appointed for implementing the
scheme.
The scheme can be bought through the Life Insurance Corporation
of India (LIC) which is the only insurance company that is offering
the scheme presently.
Covered under Aam Aadmi Bima Yojana (AABY)

Death due to natural causes: The scheme provides

compensation to family members of the deceased. At the time
of claiming, the death certificate of the policyholder has to be
submitted.
Death due to accident: If the insured meets with a fatal
accident, surviving members of the insured can claim the
compensation amount. However, a medical certificate stating
that the death was due to an accident is a must.
Partial disability or permanent total disability: If due to an
unfortunate incident, the policyholder suffers a partial
disability such as loss of one eye or limb or permanent total
disability such as loss of both eyes and both limbs, then
AABY provides coverage of a certain amount to the family
members.
Not Covered in this scheme

Death or disability from mental illness

Hospital expenses
Suicide/attempted suicide
Death or disability due to a war-like situation in the
country
Participation in dangerous and adventurous sports
Childbirth/pregnancy
Loss of life or disability due to substance abuse
Eligibility Criteria

Age: The applicant should be between 18 years and 59 years of

age.
Income: Should belong to rural landless household (RLH) and
below poverty line (BPL) family.
Members: Only one member of the family is eligible. He/she should
be the head of the family or the earning member.
Documents: Along with the application form, the applicant has to
provide supporting documents such as age proof, identity proof,
address proof, and income certificate.
 BENEFITS OF AAM AADMI BIMA YOJANA (AABY)

 Natural Death: If the insured dies due to natural causes during

the policy period, the sum assured of INR 30,000 will be paid to
the nominee or surviving members.
 Accidental Death: Accidents come unannounced. In case of death
of the policyholder due to an accident, an amount of INR 75,000 is
paid to the surviving beneficiaries or family members.
 Disability benefits: An accident can, sometimes, cause disability.
If the insured suffers from permanent partial disability, he’s
entitled to coverage of INR 37,500. If the beneficiary suffers from
permanent total disability, the claim amount is INR 75,000.
 Scholarship benefits: Apart from providing death and disability
benefits, the Aam Aadmi Bima Yojana also offers a scholarship of
INR 100 per child per month. The scholarship will be given to a
maximum of two children of the beneficiary studying between
9 th to 12th standard.
THANK YOU