Aam Aadmi Bima Yojana (AABY) meaning ‘common man’s insurance scheme’ is a social security scheme launched on 2nd October 2007 to provide financial help to the low-income families of India. The scheme is beneficial for people who are not generally on payroll. For instance, fishermen, cobblers, auto drivers, etc. Because of low income, these people are unable to save funds to face contingencies in life like disability or death. So, the scheme is designed for people who keep moving the economical wheel of the country and provides them the much required financial aid to face unfortunate situations.

The AABY scheme offers the following coverage benefits to the insured:

• Cover for Death from Natural Causes: People aged between 18 years and 59 years can purchase Aam Aadmi Bima Yojana. In case the member covered under the plan dies a natural death, then the LIC will settle a death claim of Rs. 30,000.
• Coverage for Disability: If a family member suffers from any kind of disability, the entire family suffers along. And if the sufferer is the sole breadwinner of the family, then the situation may even be worse. The Aam Aadmi Bima Yojana provides for a disability claim of Rs. 37,500 for permanent partial disability and Rs. 75,000 in case of permanent total disability occurred due to an accident.
• Cover for Accidental Death: The Aam Aadmi Bima Yojana provides cover in case of accidental death. Under this cover, the nominee of the policy gets Rs. 75,000 in case of accidental death of the policyholder.
• Additional Benefit: Apart from providing cover for disability and accidental death, Aam Aadmi Bima Yojana also provides education cover to at least two children in the family in case of a mishap. The policy provides a free scholarship of Rs. 100 every month on a half-yearly basis to the eligible children if they are studying between 9th and 12th standard.

Occupations Covered Under Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana covers people who are into low income occupations. Refer to the table below to know these occupations:

Exclusions Under Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana does not cover the insured against the following:

• Hospitalisation expenses
• Suicide
• Death or disability due to mental disorders
• Death or disability due to war or war-like situation in the country
• Participation in adventurous sports
• Participation in illegal activities
• Loss of life of disability due to substance abuse

Benefits of Aam Aadmi Bima Yojana

Listed below are the benefits of Aam Aadmi Bima Yojana:

• Affordable Policy: Aam Aadmi Bima Yojana can be purchased at very low health insurance premiums. This means that the policyholder does not have to worry about managing funds to pay for this plan. Also, half of the premium is borne by the government.
• Prompt Assistance: the insured individuals can get their queries solved, if any, by getting contacting the nearest Life Insurance Corporation (LIC) branch. The policy buyer can also contact the concerned person via email or call.
• Technologically Advanced Policy: The policy is technologically advanced and hence provides better services to the general public. This is because all the data of insured members are digitized and monitored with a web-based system that allows fast information exchanged whenever required. It helps at the time of claim settlement.

Eligibility Criteria for Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana is not for every citizen of India. Only people meeting the following criteria can apply:

• People aged between 18 years and 59 years
• People belonging to Below Poverty Line (BPL), families slightly above BPL who are a part of the vocational group as specified in the policy, and those belonging to rural landless household
• One member of the family who is the breadwinner is eligible for coverage.

How to Enrol in Aam Aadmi Bima Yojana?

To enrol in Aam Aadmi Bima Yojana, the applicant is required to visit the Nodal agency that will carry the enrollment process. A nodal agency can be any institutional agency that is appointed by the state or central governments, Union Territory of India, or even an NGO. Also, mentioning the nominee is required to enrol.

Documents Required to Apply For Aam Aadmi Bima Yojana

The following documents are required to enrol under AABY:

• Identity proof
• Address proof
• Nominee application form
• Income certificate
• Application form

How to Download the Application Form of Aam Aadmi Bima Yojana?

The Aam Aadmi Bima Yojana Form PDF or instructions to apply are available at the website of every state government. One can visit the website and be informed about the application process and download the form from the website itself.