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All you need to know about Aam Aadmi Bima Yojana (AABY) – Features and Benefits

The urban population is growing fast when compared to the rural population due to better infrastructure facilities and employment. However, a majority of people live below the poverty line in rural areas as they earn a low income. As a result, the Government of India focuses on introducing new insurance policies for those who are not on the payroll. Aam Aadmi Bima Yojana is a scheme meant for providing accidental insurance coverage for low-income families living in rural areas who don’t have land. The scheme offers financial support for a family when an earning member passes away due to an illness or accident.

What is the primary objective of AABY?

Nearly 80% of rural areas in India don’t have access to hospitals and pharmacies when it comes to medical emergencies. Aam Aadmi Bima Yojana was launched in October 2007 to satisfy the financial needs of people living in rural areas. Since they earn a very low income, it becomes difficult for them to save funds to face contingencies in life such as illness or injury. AABY is an insurance plan that provides more protection from financial troubles during unfortunate situations. The policy aims at catering to the needs of poor people to get compensation for accidental death or disability.

What are the features of the AABY scheme?

Do your parents, family members, friends, and relatives live in rural areas? Then, you can recommend this scheme to them that will help get financial stability in their life. First, however, you should know the features of the AABY scheme from different sources that will help bring more ideas.

Top 4 important features Aam Aadmi Bima Yojana (AABY Scheme)

  1. Coverage for death caused by natural factors: Those who are in the age group of 18-59 years are eligible for this scheme. If anyone is a member of this plan, then a family can claim a death benefit for Rs.30000. The scheme provides coverage for death caused by natural causes.
  2. Coverage for partial disability: Any type of disability suffered by a family member can result in financial losses, and you should consider choosing a suitable scheme. Aam Aadmi Bima Yojana scheme provides ways to receive compensation for disability caused by accidental injuries. It allows your family member to claim Rs. 37500 for partial disabilities to avoid mental worries. 
  3. Coverage for accidental death or permanent disability: The scheme offers coverage of Rs. 75000 for accidental death or permanent disabilities to ensure peace of mind.
  4. Scholarship benefit: Apart from disability and accidental death coverage, the plan provides education benefits for up to two children in a family. However, the scheme is applicable for children who study between 9th standard to 12th standard class. It offers Rs. 100 biannually that will take care of education funds.


What are the reasons to buy AABY scheme?

Here are the top 3 reasons to buy the AABY scheme as mentioned below:-

  1. Affordable prices: You can buy the policy at very low premiums that will save money. In addition, there is no need to worry about managing funds because half of the premium amount is borne by the Indian Government.
  2. Prompt assistance: The scheme is available from LIC, and you can contact the nearest LIC office in your location to know more details.
  3. Technologically advanced policy: The insurance scheme is technically advanced and offers better services for the general public. Moreover, you can gather all the data on a website that provides easy ways to claim amounts.


Also Read: PMSBY Scheme Benefits & Features

What are the eligibility criteria for AABY insurance scheme?

The insurance scheme is primarily designed for Below Poverty Line (BPL) category who don’t have land in rural areas. Anyone who is the breadwinner of a family can benefit a lot from the LIC Aam Aadmi Bima Yojana policy that will help reduce the financial burden. It is ideal for those who are in the age group of 18-59 years.

How to enroll in AABY?

Enrolling in an AABY plan is entirely different from buying an insurance plan from an insurer, and you should know the process with more attention. It is a national scheme, and you can approach any Nodal agency appointed by the state government, central Government, Union territory, or NGO that supports the registration process. At the same time, you should consider mentioning the nominee’s name while enrolling in this process.

Documents required to register in the AABY scheme 

You should know the requirements needed for the Pradhan Mantri Aam Aadmi Bima Yojana scheme from different sources. This will help a lot to claim amounts for accidental death and disabilities caused by injuries. Some of the documents required include:

  • Application form 
  • Identity proof approved by the Nodal Agency 
  • Address proof 
  • Income certificate issued by the revenue department 
  • Nominee application form 


Where and how to download the application for the AABY scheme?

AABY scheme is a social activity scheme introduced by the Indian Government. The scheme is available in all states, and the application form is available in PDF form. Hence, you need to visit the concerned state government’s website and look for the details. This, in turn, gives ways to know how to apply for the scheme quickly. For example, if you live in Gujarat, then you visit the Gujarat Government website to gather more information. The actual premium for the scheme is 320 rupees only and is easy to pay. However, the Indian Government will bear 50% of premium amounts that will help receive the long-term benefits.

How to claim amounts for accidental death and disability?

If you are a nominee, then you can claim amounts for accidental death and disability under this scheme. You should file your claim to the designated Nodal agency officer with certain documents. First, you should submit an original death certificate when it is natural death. Second, you need to submit the FIR copy, post mortem report, police inquest report, and the final information obtained from the Police for accidental death. For disabilities caused by accidents, you should submit a medical certificate and documentary evidence. It is wise to follow the instructions correctly when you want to claim amounts as soon as possible. 

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