In a country with a population of over 1.3 billion, 22% of the working mass make less than the international daily wage benchmark of Rs.143.
A majority of the workforce are left in a completely helpless situation during unexpected health emergencies costing their family an earning source. Precisely to address this issue, the government of India came up with 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.
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.75000 |
|
Natural death |
Rs.3000 |
|
Accidental partial disability |
Rs.37500 |
|
Accidental permanent total disability |
Rs.75000 |
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.
From the above list, you can get a clear idea of how your family can benefit from this scheme.
In addition to the policy inclusions and exclusions, here is a list of some other key characteristics of this insurance scheme.
Now that you know the important characteristics of this scheme, it is time to look at its advantages.
Here are some of the key benefits of this insurance scheme.
However, note that you can only avail of these benefits if you meet the specific criteria for income, age, and profession.
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.
Besides belonging to any of the above professions, you also need to meet certain eligibility criteria to qualify for this insurance scheme.
Have a look at the conditions to enjoy a successful application.
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 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.
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 at easing 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.
Additionally, individuals belonging to the following categories can enjoy the subsequent benefits.
Therefore, if you are a part of the groups mentioned above, you can claim the benefits of the entire scheme under Aam Aadmi Bima Yojana against zero-premium!
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 in the following steps.
Note that in the case of accidental death, nominees will also need to submit copies of 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.
If your child is eligible for scholarship benefit under AABY, then you need to fill in the Aam Aadmi Bima Yojana scholarship online application form and submit it to your Nodal agency.
This procedure needs to be followed every 6 months for the nodal agency to cross-check if your child has crossed the qualifying limits. The agency will then send the list of identified students to LIC’s Pension & Group Scheme unit.
This list must contain the following details against each beneficiary.
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 confusions 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 through the contact details of your nearest LIC branch.
Please try one more time!
Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.
Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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