India has a large population of workers in the unorganized sector, who often lack access to the necessary health insurance plans. To support this sector, the government of India introduced the Aam Aadmi Bima Yojana (AABY) to provide life and disability insurance at cheaper rates for low-income groups.
If you are looking for health insurance schemes for financially weaker sections, it may be beneficial to understand the key features of AABY. Let's delve deeper to discover the benefits, coverage, eligibility and application process of Aam Aadmi Bima Yojana.
What is Aam Aadmi Bima Yojana (AABY)?
Aam Aadmi Bima Yojana Scheme was launched by India's government on October 2, 2007, to provide accessibility of life and disability insurance to individuals with financially weaker backgrounds. The scheme is administered by the Life Insurance Corporation of India (LIC) and is designed to provide financial security in terms of death or disability.
Under AABY, nominees receive a lump sum amount in case of the insured's death or disability. In addition, the scheme provides a scholarship benefit for children of insured members to ensure educational assistance to their families.
Key Benefits of Aam Aadmi Bima Yojana (AABY)
Aam Aadmi Bima Yojana provides multiple benefits, ensuring financial stability for the insured and their families. Below are some primary key benefits:
1. Affordable premium
With an annual premium of ₹200, AABY ensures affordable health insurance, making it accessible to low-income individuals. Minimal premium costs also enable people with irregular earnings to get insured.
2. Life insurance coverage
It provides ₹30,000 for natural death and ₹75,000 for accidental death, providing financial security to families and ensuring that policyholders' dependents do not suffer from a sudden financial crisis.
3. Scholarship for children
Two children of the insured receive ₹100 per month each from Class 9 to Class 12, who support the education. The scholarship is paid on a semi-annual basis, which helps families to cover the school's related expenses.
4. Government contribution
The government of India pays a 50% premium, and for economically weaker rural households, the entire premium is provided. This reduces the financial burden for families who can't afford insurance coverage.
5. Disability compensation
Covers total disability with ₹75,000 and partial disability with ₹37,500, which helps insured individuals to handle financial difficulties. Compensation helps to cover medical expenses and ensures great livelihood support.
6. Hassle-free process
Nominees require benefits through LIC offices with minimum documentation, ensuring trouble-free financial assistance. The process is smooth, and claims are transferred directly to the nominee's bank account for convenience.
Who Is Eligible for Aam Aadmi Bima Yojana?
To apply for Aam Aadmi Bima Yojana (AABY), individuals must meet the following this certain eligibility criteria:
1. Age Requirement
· The applicant must be between 18 and 59 years old.
2. Income Criteria
· The applicant must belong to a Below Poverty Line (BPL) family or be identified as part of the Economically Weaker Section (EWS).
3. Occupational Criteria
· The scheme is designed for individuals from low-income families engaged in specific types of occupations like:
o Agricultural labourers
o Weavers
o Fishermen
o Handloom workers
o Rickshaw pullers
o Beedi workers
4. Family Requirements
· Only one earning member per family can be insured under the AABY scheme.
How to Apply for Aam Aadmi Bima Yojana?
Step 1: Meet your eligibility criteria
Before applying for the Aam Aadmi Bima Yojana Scheme, make sure you meet the eligibility criteria, including age, occupation, and income.
Step 2: Contact the Nodal Agency
AABY applications are processed through various types of nodal agencies such as:
· Self-Help Groups (SHGs)
· Gram Panchayats (for rural areas)
· State and Central Government Departments
· Non-Governmental Organisations (NGOs)
Step 3: Collect and fill out the application form
· Get the Aam Aadmi Bima Yojana application form from LIC offices, nodal agencies etc.
· The Aam Aadmi Bima Yojana online registration is also possible through the official government website.
· Provide all the personal details such as name, age, address, occupation, and nominee details in the form.
Step 4: Submit required documents
You need to submit the following documents:
· Aadhaar Card (as ID and address proof)
· Birth Certificate or Age Proof
· Bank Account Details
· BPL Certificate or Income Certificate (to prove economic status)
· Occupation Certificate
Step 5: Pay the premium
· You need to pay the minimal premium amount of ₹200 per year per person.
· The Government of India pays 50% of the premium for all eligible applicants under the scheme.
· The government covers the entire premium for economically weaker rural households.
Step 6: Receive Your Policy Document
After the proper verification process, you will successfully receive a certificate of insurance issued by LIC confirming your health insurance plan.
Final thoughts
Aam Aadmi Bima Yojana Scheme is an excellent scheme that provides affordable health insurance to financially weaker families. With reasonable premiums, financial support and scholarship benefits this scheme ensures security in crucial times of uncertainty.
GeneraIi Central Insurance is obliged to spread awareness about such favourable schemes and help individuals secure their future with the right insurance solutions. If you are eligible then consider applying for AABY to protect the family's well-being.
Frequently Asked Questions (FAQs)
1. Who is eligible for Aam Aadmi Bima Yojana (AABY)?
People aged 18 to 59 years from economically weaker sections and working in eligible occupations can apply.
2. Can I apply for Aam Aadmi Bima Yojana apply online?
Yes, The Aam Aadmi Bima Yojana online registration can be done through the official government website.
3. How to check Aam Aadmi Bima Yojana LIC policy status?
You can check your Aam Aadmi Bima Yojana LIC policy status online via the LIC portal, by calling LIC customer care or by visiting the nearest LIC branch.
4. How can I claim insurance benefits during AABY?
The nominees must submit a claim form, death or disability and bank details for claiming under the AABY scheme.
5. Can I renew my AABY policy every year?
Yes, as long as you remain eligible and pay the required premium, this policy is renewed annually.
