Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana is a significant initiative by the Government of India aimed at providing affordable life insurance coverage to the unorganized sector. Launched in 2007 and administered by the Life Insurance Corporation of India (LIC), the scheme seeks to offer financial security to families of deceased or disabled members from economically weaker sections. This scheme is crucial as it addresses the needs of individuals employed in sectors such as agriculture, fishery, dairy, handloom, and construction, among others.

The primary objective of the scheme is to provide financial support in case of death or disability of the earning member. With the premium shared equally by the central and state governments, the cost to the beneficiary is minimal. This makes insurance accessible to those who need it most, offering coverage of Rs. 30,000 for natural death, Rs. 75,000 for accidental death, and Rs. 37,500 for partial or permanent disability. Additionally, the scheme includes an add-on benefit of scholarships for the children of the insured in case of the insured’s death.

Feature	Description
Name of the Yojana	Aam Aadmi Bima Yojana
State	All India
Initiated By	Government of India
Yojana Overview	Aam Aadmi Bima Yojana is a government-sponsored social security scheme aimed at providing affordable life insurance coverage to the unorganized sector. It offers financial support to the economically weaker sections in case of the death or disability of the earning member of the family. The scheme provides coverage for natural death, accidental death, and partial or permanent disability. Additionally, it offers scholarships to the children of the insured.
Beneficiaries	The scheme targets individuals aged 18 to 59 years, belonging to below poverty line households, and employed in unorganized sectors such as agriculture, fishery, dairy, handloom, and construction. It also includes urban workers like street vendors, ragpickers, and sanitation workers.
Registration Process	Offline mode: Individuals can apply through the nearest LIC office or designated bank branches by filling out an application form and providing necessary documents.
Official Website	https://bor.up.nic.in/aabyaudit/

Objectives of Aam Aadmi Bima Yojana

1. Financial Support for Families: The primary goal is to provide financial assistance to families in the event of the death or disability of the earning member. This helps in reducing the financial burden during difficult times.
2. Affordable Insurance Coverage: The scheme aims to offer life insurance at a very low cost, with the premium being shared between the government and the beneficiary.
3. Coverage for Various Risks: It provides coverage for natural death, accidental death, and disability, ensuring comprehensive protection.
4. Educational Support: Scholarships are provided to the children of the insured, ensuring their education is not disrupted due to financial constraints.
5. Economic Stability: By providing financial security, the scheme helps in maintaining economic stability for the families of the unorganized sector workers.

Registration Process

The registration process for Aam Aadmi Bima Yojana is straightforward and primarily offline. Here’s a detailed guide:

1. Visit LIC Office or Bank Branch: The applicant needs to visit the nearest LIC office or designated bank branch.
2. Fill the Application Form: Obtain and fill out the application form with accurate personal details, income information, and bank account details.
3. Attach Necessary Documents: Attach required documents such as Aadhaar card, age proof, address proof, income certificate, and occupation proof.
4. Submit the Form: Submit the completed application form along with the supporting documents to the LIC office or bank branch.
5. Verification and Issuance: The documents will be verified, and if everything is in order, a policy certificate will be issued and sent to the applicant’s registered address.

Having a valid bank account is crucial as the premium is deducted through the electronic clearance system (ECS).

Benefits of this Yojana

The Aam Aadmi Bima Yojana offers several key benefits:

1. Financial Assistance: Provides financial aid of Rs. 30,000 for natural death, Rs. 75,000 for accidental death, and Rs. 37,500 for disability.
2. Affordable Premiums: The annual premium is only Rs. 200, with Rs. 100 borne by the central government, Rs. 30 by the state government, and Rs. 70 by the beneficiary.
3. Scholarship Benefits: In the event of the insured’s death, the scheme provides scholarships for the children to support their education.
4. Coverage for Natural Calamities: The scheme also covers deaths due to natural calamities like floods and earthquakes.
5. Support for Women: It offers special benefits for women, including maternity benefits and coverage for female-headed households.

Eligibility Criteria

To be eligible for Aam Aadmi Bima Yojana, the following criteria must be met:

1. Age Limit: The applicant should be between 18 and 59 years old.
2. Income Limit: The applicant should belong to a household below the poverty line with an annual income not exceeding Rs. 1,00,000.
3. Occupational Requirement: The applicant should be employed in unorganized sectors such as landless agricultural laborers, rural artisans, fishermen, weavers, and similar occupations. Urban workers like street vendors and sanitation workers are also eligible.
4. No Other Coverage: The applicant should not be covered under any other social security scheme like the National Pension Scheme or Employee’s State Insurance Scheme.
5. Primary Breadwinner: The applicant should be the primary breadwinner of the family.

Required Documents

To apply for Aam Aadmi Bima Yojana, the following documents are required:

1. Aadhaar Card: Proof of identity.
2. Age Proof: Document indicating the applicant’s age, such as a birth certificate, school leaving certificate, or passport.
3. Address Proof: Any document showing the applicant’s address, such as a driving license or electricity bill.
4. Bank Account Details: Active bank account details, including the account number and IFSC code.
5. Income Certificate: Certificate indicating the applicant’s annual income, issued by a competent authority.
6. Occupation Proof: Document showing the applicant’s occupation, such as a work ID card.
7. Death Certificate: Required for claiming the insurance coverage in case of the insured’s death.

Exclusion of this Yojana

The scheme excludes certain individuals from its benefits:

1. Organized Sector Employees: Individuals employed in the organized sector, such as government employees or those in private companies with a Provident Fund, are not eligible.
2. Income Taxpayers: Individuals who are income taxpayers cannot apply for this scheme.
3. Other Insurance Schemes: Individuals already covered under other insurance schemes are excluded.
4. Non-Primary Breadwinners: Individuals who are not the primary breadwinner of their family are not eligible.
5. Age Limit: Individuals above 59 years of age are not covered.

Features of this Yojana

The key features of the Aam Aadmi Bima Yojana include:

1. Government Support: The scheme is supported by both the central and state governments, making it highly affordable for beneficiaries.
2. Comprehensive Coverage: Provides insurance coverage for natural and accidental deaths, as well as disabilities.
3. Educational Assistance: Scholarships for the children of the insured ensure continued education.
4. Special Benefits for Women: Offers additional benefits for female-headed households and maternity benefits.
5. Easy Enrollment: The enrollment process is simple, making it accessible to a large section of the population in the unorganized sector.

By understanding and leveraging the benefits of the Aam Aadmi Bima Yojana, eligible individuals can ensure financial security and support for their families in times of need. This scheme plays a vital role in the social security landscape of India, providing much-needed relief and support to the most vulnerable sections of society.