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.

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.

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.

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.

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.”

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>.”

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!

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.

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:

• Digit's Cashless Medical Insurance Policy
• Digit's Reimbursement Claim

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.