Digit Health Insurance

9000+ Cashless Hospitals

Exclusive Wellness Benefits

Check Premium Check Premium

What is Aam Aadmi Bima Yojana (AABY Scheme)?

In a country with a population of over 1.4 billion, 33% of the working masses make less than the international daily wage benchmark of Rs.143.

During unexpected health emergencies, most workers are left helpless, which costs their families income. To address this issue, the government of India created the Aam Aadmi Bima Yojana.

Wondering what this scheme is and how it works?

Please read our guide.

Team Digit

What is AABY Scheme?
Features & Benefits
What is Covered & Not Covered?
Which Professions are Covered?
Eligibility Criteria for AABY Scheme
How to Apply Online & Offline?
Documents Required
How to Raise a Claim?
Frequently Asked Questions

What is Aam Aadmi Bima Yojana?

The Aam Aadmi Bima Yojana was launched on 2nd October 2007 by the Indian government in the interest of workers in the unorganised sector. This social security scheme aims to offer financial assistance to lower-income groups against health impairment and death.

This was done considering the fact that these labourers, like street vendors, construction workers, fishermen, auto drivers, weavers, leather workers, etc., are not registered under any Act. Hence, they miss out on the government insurance schemes covering workers in organised sectors.

What are the Features of AABY Scheme?

In addition to the policy inclusions and exclusions, here is a list of some other key characteristics of this insurance scheme:

Feature	Description
Goal	AABY’s primary goal is to provide social security to individuals who lack the means to access urban healthcare.
Insurance Amount	This policy entails a fixed insurance amount, which varies depending on the type of contingency.
Coverage Payment	This entire coverage amount is paid at one go upon a claim.
Eligibility	The Aam Aadmi Bima Yojana is applicable for only one member per family. Therefore, you cannot avail the mentioned benefits if another family member has already reaped its fruits earlier.
Purchasing Information	Interested individuals can buy this scheme only through the Life Insurance Corporation of India (LIC) since it is the only insurance company offering this scheme at present.
Affordable	The Aam Aadmi Bima Yojana has an extremely low premium. Because of this, the plan is reasonable, and there is no need to worry about saving money to cover the premiums. Furthermore, the government pays for half of the premium.
Insurance with Advanced Technology	Technology has enabled the government to offer improved services to the public. AABY is one instance of this. A web-based system is used to digitise and monitor all member data, facilitating prompt information transmission as needed.
Prompt Assistance	Members can quickly get their questions answered by contacting the Life Insurance Corporation (LIC) branch closest to them. An individual can also contact a contact person via phone or email.

Now that you know the essential characteristics of this scheme, it is time to look at its advantages.

What are the Benefits of the AABY Scheme?

The AABY Scheme comes with many important benefits. Here are some of the key benefits of this insurance scheme:

Benefit	Description
Subsidised and Affordable Premiums	This scheme offers extremely affordable premiums compared to other insurance policies, 50% of which are government-sponsored. We’ve discussed this aspect in detail in the premiums section.
Instant Assistance	A digital database of scheme members facilitates the speedy exchange of information as and when required. Policyholders can easily contact their nearest LIC branch for a solution.
Hassle-free Enrollment	Application and enrollment do not involve extensive documentation.
Simple Claim Process	Like the enrollment process, filing a claim is also made easy via the ABBY card.
Coverage For Death From Natural Causes	The Aam Aadmi Bima Yojana has an admission age range of 18 to 59. In the event that a plan participant passes away from natural causes, LIC will pay Rs. 30,000 to settle the death claim.
Handicap Coverage	If the disabled individual was the family's only provider of income, the family could benefit financially from AABY's assistance. Under this plan, a permanent partial disability is worth Rs 37,500, and a permanent entire disability resulting from an accident is worth Rs. 75,000.
Coverage For Accidental Death	Accidents can have serious repercussions and are incredibly unpredictable. As a result, accidental death is covered under the Aam Aadmi Bima Yojana. A payment of Rs. 75,000/-is made to the plan nominee under this coverage.
Additional Benefit	The Aam Aadmi Bima Yojana guarantees that at least two children in the household receive uninterrupted education and provides death and disability payouts.

However, note that you can only avail of these benefits if you meet the specific criteria for income, age, and profession.

What is Covered Under under the AABY?

Now, you might be wondering what sort of coverage can be availed from this government-aided scheme, isn’t it?

Here is a table detailing valid circumstances with the sum insured against them to clarify your doubts.

Type of Emergency	Amount Insured
Death due to accident	Rs.75,000
Natural death	Rs.30,000
Accidental partial disability	Rs.37,500
Accidental permanent total disability	Rs.75,000

In addition to the above benefits, an insured individual can also avail of an additional scholarship benefit for his/her offspring free of cost in case of any eventuality. This coverage under the Aam Aadmi Bima Yojana scheme entails a monthly sum of Rs.100 per child. Note that this is applicable for up to 2 children only, and both of them have to be studying in 9th to 12th standards.

What is Not Covered Under the AABY?

A common misconception among individuals might be that since this is a health insurance scheme, it is bound to cover all kinds of medical expenses. However, like all other medical insurance policies, the Aam Aadmi Bima Yojana also has specific exclusions.

Following is a list of conditions/situations that are not covered under this programme:

Hospitalisation cost
Pregnancy and childbirth
Death or disability due to substance abuse
Injury caused by biological, chemical, or radioactive weapons
Mental illness
Injury from participating in extreme sports
Suicide or self-inflicted harm
Death or disability from criminal activities
Injury in war or war-like circumstances

From the above list, you can get a clear idea of how your family can benefit from this scheme.

Which Professions are Covered Under the Aam Aadmi Bima Yojana?

As already mentioned, this scheme primarily focuses on individuals belonging to the lower-income group. However, we understand if you are looking for specifics. If you want to know who the Aam Aadmi Bima Yojana provides social security to, refer to the following list:

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

What are the Eligibility Criteria for Aam Aadmi Bima Yojana?

Have a look at the conditions to enjoy a successful application.

The potential insured member must be aged between 18-59 years.
The applicant must be from a Below Poverty Line (BPL) family, a Rural Landless household (RLH), or engaged in any mentioned occupational groups.
The applying individual must be the family head, regardless of being the sole earning member or not.
The individual must belong to a rural, landless household.
The individual must belong to one of the 48 vocational groups identified as beneficiaries under this scheme.
Only one member per family can be covered under the scheme.

If you and your family are completely unfamiliar with this scheme’s whereabouts, here is a guide for your first-time application.

How to Apply for the Aam Aadmi Bima Yojana Online?

Follow the given steps to apply online for the Aam Aadmi Bima Yojana.

Step 1: Go to the official website of the Life Insurance Corporation of India (LIC).

Step 2: Select “LIC Aam Aadmi Bima Yojana Apply Online” on the homepage.

Step 3: On the next screen, fill in the application form with accurate details.

Step 4: Upload scanned copies of all required documents and click on “Submit.”

How to Apply for the Aam Aadmi Bima Yojana Offline?

Individuals who do not have access to the internet can also complete the AABY application procedure offline. Following are the steps for the same:

Step 1: Visit your nearest NIC nodal agency to get the application form.

Step 2: Just like the online process, fill in this application form with the correct information here as well.

Step 3: Attach copies of all necessary documents with the application form.

Step 4: Go to your nearest LIC office and submit the items as mentioned earlier.

There you go!

Now, if you require more information about this scheme, send the following SMS to 9222492224 or 56767877:

“LICHELP <Policy Number>.”

Documents Required to Apply for the Aam Aadmi Bima Yojana

It can be difficult for a first-time applicant to keep track of all documents required for application. To address your concern, below is the list of all the required documents you must keep handy before applying.

Ration card
Aadhaar card
Voter ID card
Income certificate
Nominee application form
Bank Account Details
Occupation proof

Confirm the requirement of any additional document, and make sure to provide the same with your application form.

Once you have made it through a successful application procedure, you might be concerned about the premium you need to pay. Well, we’ve got that covered as well!

Premium Charged by the Aam Aadmi Bima Yojana

Like any other insurance plan, the AABY scheme also comes with premiums, although nominal. Yes, since this plan aims to ease the lives of low-earning workers, the annual premium is set at Rs.200 only against insurance coverage of Rs.30,000. On top of that, 50% of this amount is already paid by the Central government, i.e., Rs. 100.

Out of the remaining amount, Rs. 30 is paid by the state government, and the remaining Rs. 70 is paid by the beneficiary.

How to Raise a Claim Under the AABY Scheme?

Depending on the type of contingency suffered, your go-to insurance claim process may differ.

Here, we list all the possible scenarios under which you can raise a claim and their respective procedures to be followed.

1) Death Due to An Accident or Natural Causes

Upon the insured individual’s death, a nominee can make a death claim using the following steps:

Step 1: Fill in the Aam Aadmi Bima Yojana death claim form.
Step 2: Submit it along with the policyholder’s original death certificate and an attested copy to the concerned Nodal agency official.
Step 3: Upon verification, the official will submit the claim form along with the provided documents and the deceased policyholder’s eligibility certificate.

Note that in the case of accidental death, nominees will also need to submit copies of the post mortem report, FIR, police inquest report, and final police report.

2) Partial or Total Disability

To file a disability claim, the insured need to submit the following documents besides the Aam Aadmi Bima Yojana claim form.

Documents with proof of accident like police FIR.
A medical certificate stating the details and type of disability. This must be issued by a registered Government Orthopaedic or Government Civil Surgeon.

3) Scholarship Benefit

Follow the steps given below to get the full scholarship benefit from Aam Aadmi Bima Yojana:

Step 1: Complete the Aam Aadmi Bima Yojana scholarship online application form.
Step 2: Send it to your Nodal agency if your child qualifies for an AABY scholarship.
Step 3: The nodal agency must follow this process every six months to double-check whether your child has exceeded the qualifying thresholds.
Step 4: The LIC's Pension & Group Scheme unit will receive the list of identified students from the agency.

This list must contain the following details against each beneficiary.

Name of student
Class
Name of school
Name of the insured
Aam Aadmi Bima Yojana policy number
NEFT number
Insured member’s membership number.

Upon receiving the full list of eligible students, LIC will transfer the scholarship amount to the policyholder’s bank account via NEFT.

Given the several intricacies of this entire procedure, it is possible for interested individuals to have confusion and queries.

Well, for that, you can contact the Aam Aadmi Bima Yojana helpline number available on LIC’s official website. You can also forward your queries using the contact details of your nearest LIC branch.

Know about:

AABY Helpline Number And Address

Knowing the address and helpline number is beneficial for eligible people to streamline their contact facilities. Here are the contact details:

Address: Room No. 101, 1st Floor Mantralaya, Hutatma Rajguru Chowk, Madam Cama Road, Nariman Point, Mumbai - 400032

Mantralaya Landline No: 022-22029520

Email ID: ds1.sa@maharashtra.gov.in.

By providing insurance services to the economically disadvantaged, many of whom may not have had official financial protection against life's risks, AABY encouraged financial inclusion.

Similar to many social security programs, its efficacy and impact could be increased through ongoing review and expansion to cover new risks and raise the amount assured. AABY should be utilised nationally with easy enrollment and claims processes.

FAQs about Aam Aadmi Bima Yojana

All

Under which conditions can I avail of coverage under partial disability and permanent total disability?

Partial disability refers to the condition where an individual can still work for a living and includes the loss of one eye or limb. Permanent total disability refers to the loss of both eyes, both limbs or one eye and one limb. Depending on the type of disability, insured individuals can avail of insurance amounts accordingly.

Do I have to appoint a nominee during the AABY application?

Yes, it is mandatory to appoint a nominee when applying for this insurance scheme so that a claim can be made upon the insured individual’s demise. For this, you must duly fill in the nomination form provided with your application form before submission. This form will remain with the Nodal Agency until the latter transfers it to LIC upon a death claim.

What is the role of the Social Security Fund?

The aim is to make the AABY insurance plans affordable for economically backward workers. This is why the Central government set up the Social Security Fund to subsidise half of the premium.

Can I apply under the Aam Aadmi Bima Yojana again after my family’s previous policyholder dies?

No, the Aam Aadmi Bima Yojana is valid for up to one application per family only. If your family’s policyholder expires, you can benefit from the existing coverage by filing for a death claim. However, you cannot apply for this scheme’s benefit for a second time.

What is the Aam Admi Bima Yojana (AABY)?

The AABY is a social security scheme aimed at providing insurance coverage to rural landless households in India, offering benefits in case of natural or accidental death and disability.

Who is eligible for AABY?

Landless rural households with a head of the family or an earning member aged between 18 and 59 years are eligible for the scheme.

What are the benefits of AABY?

The following are the benefits of AABy for different categories:

Natural Death: Rs. 30,000
Accidental Death or Total Permanent Disability: Rs. 75,000
Partial Disability: Rs. 37,500

How much is the premium for AABY?

The annual premium is Rs. 200 per member, with the Central and State governments each contributing in 50:50 ratio.

How can I enrol in the Aam Admi Bima Yojana?

Individuals can enrol through the nodal agency, a village panchayat, an NGO, or any other designated organisation.

What documents are required for enrollment?

Typically, documents required include proof of age, proof of identity, and a certificate confirming landless status from the local authority.

Is there any educational benefit under AABY?

Yes, the scheme provides scholarships of Rs. 100 per month to the insured's children (maximum two), studying in classes 9 to 12.

How can a claim be made under the Aam Admi Bima Yojana?

The nominee or family member must submit a filled claim form and necessary documents like a death certificate, medical reports (in case of disability), and identity proof to the nodal agency.

How long does it take to process a claim?

Submit proper documents within 30 days of the occurrence of the incident. Once all required documents are submitted, the claim is generally processed within a few weeks.

Can a member continue with the scheme after reaching 59 years of age?

No, coverage under the AABY scheme ceases when the member turns 60. The scheme is valid only for members aged 18 to 59.

Is the coverage under AABY applicable only within India?

Yes, the benefits of the AABY scheme are applicable only within India. The Central Government of India undertook the initiative for its citizens.

Can multiple members of a household be insured under Aam Admi Bima Yojana?

No, the program can only cover one individual per family. The person must come from a home without land in a rural area. The person must be a member of one of the 48 occupational categories this program has designated as beneficiaries.