Aam Aadmi Bima Yojana (AABY) – Eligibility, Benefits & More

India is a developing economy with a large low-income population, especially in the unorganized sector. To provide financial security to such groups, the Government of India launched the Aam Aadmi Bima Yojana (AABY) on 2 October 2007. The scheme offers life insurance coverage to workers such as fishermen, drivers, cobblers, and others who are not on formal payrolls.

The AABY insurance scheme is administered by the Life Insurance Corporation of India (LIC) and aims to reduce poverty and promote social security. In January 2013, the Janashree Bima Yojana (JBY) was merged with AABY by the Ministry of Finance, and the unified scheme continued under the name Aam Aadmi Bima Yojana.

By supporting low-income families and encouraging financial inclusion, AABY plays a vital role in India’s socio-economic development as the country moves toward becoming the world’s most populous nation.

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Who Does The Scheme Serve?

Nearly 93% of India’s workforce is employed in the unorganized sector, yet a large portion of these workers lack adequate social security coverage. This absence of protection exposes workers and their families to financial and healthcare-related insecurities. Access to timely medical care and financial support during emergencies is critical for their well-being.

The LIC Aam Aadmi Bima Yojana (AABY) addresses this gap by offering insurance and financial assistance to low-income families, especially in cases of death or disability. Understanding AABY eligibility or Aam Aadmi Bima Yojana eligibility criteria helps beneficiaries determine who can avail of the scheme and its benefits. Eligible individuals receive a Aam Aadmi Bima Yojana policy number upon enrollment.

By supporting workers who are often overlooked despite their essential role in the economy, AABY benefits promote social security, financial inclusion, and stability for India’s most vulnerable populations.

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What Does The Aam Aadmi Bima Yojana (AABY Scheme) Cover?

The Aam Aadmi Bima Yojana (AABY), also known as Aam Aadmi Yojana, provides financial assistance to low-income families in India who meet the AABY eligibility or Aam Aadmi Bima Yojana eligibility criteria. The scheme supports beneficiaries facing natural death, accidental death, partial disability, permanent total disability, and offers scholarship benefits for eligible dependents.

To claim AABY benefits, specific documents are required:

• Natural death: Death certificate of the deceased
• Accidental death: Medical certificate stating accidental cause of death
• Partial or permanent disability: Medical certificate issued by a government medical practitioner

Beneficiaries can check Aam Aadmi Bima Yojana status online, and Aam Aadmi Bima Yojana online registration makes enrollment and claim tracking more convenient.

What Is The Eligibility Criteria Of The Aam Aadmi Bima Yojana (AABY Scheme)?

To be eligible for the Aam Aadmi Bima Yojana (AABY), the applicant must be between 18 and 59 years of age. The insured person should be the head or an earning member of a Below Poverty Line (BPL) family or a family marginally above the poverty line, belonging to an identified vocational group or a rural landless household.

Only individuals from the 48 notified vocational groups are eligible, and only one member per family can be covered under the scheme. The sum assured under AABY varies depending on the type of coverage, such as death or disability, and each benefit has a separate claim procedure.

To enroll, applicants can search “LIC Aam Aadmi Bima Yojana apply online” to access the official application process.

What Is The Eligibility Criteria Of The Aam Aadmi Bima Yojana (AABY Scheme)?

Under the LIC Aam Aadmi Bima Yojana (AABY), eligible children of insured members receive a monthly scholarship of ₹100 to support uninterrupted education. This benefit is available for a maximum of two children per insured person, provided the child is studying between Class 9 and Class 12.

By promoting education among low-income families, the Aam Aadmi LIC policy contributes to long-term social and economic development. In addition, insured individuals can avail tax benefits under Sections 80D and 10(10D) of the Income Tax Act, 1961, subject to applicable conditions.

For queries, enrollment assistance, or claim-related support, beneficiaries may visit their nearest Life Insurance Corporation (LIC) branch.

Exclusions To The Aam Aadmi Bima Yojana (AABY Scheme)

While the Aam Aadmi Bima Yojana (AABY) or LIC Aam Aadmi Yojana offers essential financial protection to eligible beneficiaries, certain situations are excluded from coverage. Understanding these exclusions helps avoid claim-related confusion.

Exclusions under LIC Aam Aadmi Bima Yojana

The scheme does not provide benefits for:

• Suicide or attempted suicide
• Self-inflicted injuries, including those arising from mental illness or insanity
• Pregnancy or childbirth-related events
• Medical expenses incurred after an accident
• Death or disability due to war or war-like operations
• Chemical, biological, or radioactive weapons
• Participation in extreme or hazardous sports
• Death or disability resulting from criminal acts or breach of law

Knowing the AABY exclusions ensures beneficiaries clearly understand what is not covered under the scheme, enabling informed decision-making and smoother claim processes.

How To Make A Claim Through The Aam Aadmi Bima Yojana (AABY)

The claim process under the Aam Aadmi Bima Yojana (AABY) is simple and easy to follow. To receive AABY benefits, the claimant must provide proof that the insured event has occurred.

In case of a covered event, beneficiaries should approach the designated agency or authorized personnel and submit the required documents, which may include the death certificate of the insured, post-mortem or autopsy report (for accidental death), FIR copy, and medical certificate for disability, as applicable.

Once the claim is verified and authenticated, the approved benefit amount is transferred directly to the beneficiary’s bank account via NEFT, ensuring a secure and transparent payout process.

Aam Aadmi Bima Yojana (AABY) Premiums

Under the LIC Aam Aadmi Bima Yojana (AABY), the annual premium is ₹200 for a sum assured of ₹30,000. 50% of the premium is subsidized through the Social Security Fund of the Government of India.

For rural landless households, the remaining 50% premium is paid by the State Government or the respective Union Territory. For beneficiaries from other notified occupational groups, the balance premium may be shared by the implementing agency, the insured member, and/or the State Government or Union Territory.

This premium-sharing structure makes AABY insurance affordable for low-income families and workers in the unorganized sector.

Online Application Process For Aam Aadmi Bima Yojana (AABY scheme)

To apply for the LIC Aam Aadmi Bima Yojana (AABY), individuals can search “LIC Aam Aadmi Bima Yojana apply online” to access official resources. The online application process makes enrollment convenient, especially for applicants with limited mobility or financial constraints.

The AABY application form is available on the respective State Government website. Applicants can download the form along with instructions and terms, fill in the required details, and submit it with the mandatory documents at the nearest designated office.

For assistance, applicants may contact the LIC helpline listed on the official website or visit the nearest LIC branch to resolve queries related to the Aam Aadmi policy or application process.

Issues Related To The Aam Aadmi Bima Yojana (AABY) Scheme

The Aam Aadmi Bima Yojana (AABY) plays a crucial role in strengthening social and health security in India. Despite improvements in healthcare infrastructure, access to affordable healthcare remains a major challenge, especially for economically weaker and vulnerable groups.

Many low-income individuals avoid health insurance due to high costs, limited awareness, or lack of understanding of its benefits. Others face barriers such as low health literacy, social stigma, and misinformation. These challenges are more pronounced in rural India, where healthcare delivery is hindered by limited infrastructure, medicine shortages, long travel distances, and traditional beliefs.

By addressing these gaps, schemes like the Aam Aadmi policy support financial protection and promote healthcare inclusion for underserved populations.

Reasons To Apply For The AABY Scheme

In conclusion, the LIC Aam Aadmi Bima Yojana (AABY) plays a vital role in uplifting economically weaker and underserved communities in India while supporting overall national development. By improving financial and health security for workers in the unorganized sector, the scheme contributes to a better quality of life and social stability.

Effective implementation and awareness of schemes like Aam Aadmi Bima Yojana are essential to ensure accessible, affordable, and efficient healthcare for all, making them a cornerstone of inclusive growth in India.

Conclusion

In conclusion, the LIC Aam Aadmi Bima Yojana (AABY) helps uplift economically weaker and marginalized communities in India while contributing to the nation’s overall development. By improving financial and health security for workers in the unorganized sector, the scheme enhances quality of life and social well-being.

Effective implementation and awareness of Aam Aadmi Bima Yojana benefits are essential to ensure accessible, affordable, and efficient healthcare for all, making such social security schemes vital to India’s inclusive growth.

On another note, if government schemes are not enough to fund oneself, they can try online fundraising or creative fundraising which can help them raise funds for their health-related needs.

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