In India, a large number of people belong to low-income groups. To help fight the serious issue of poverty, the Central Government has launched various schemes for the people. One such scheme that has been introduced to provide financial help in the time of crisis is Aam Admi Bima Yojana.
Aam Admi Bima Yojana (AABY) was launched on October 2, 2007. The scheme benefits those who are usually not on a payroll – take for instance, fishermen, auto drivers, cobblers, etc.
Aam Aadmi Bima Yojana Benefits
AABY offers several benefits to the members and they are;
Coverage for Death from Natural Causes
Entry age for AABY is set between 18 and 59. If a member dies due to natural causes then the LIC will settle a death claim for Rs.30,000.
Coverage for Disability
Any type of disability faced by a family member comes as a big shock for the other members. This shock is exaggerated if the person suffering from disability was the only earning member of the family. With the help of this scheme, the family can use a helping hand in terms of finances. The disability claim under AABY is Rs. 37500/- for permanent partial disability & Rs.75000/- for permanent total disability due to an accident.
Coverage for Accidental Death
Accidents are unpredictable and they can result in severe consequences. Therefore, AABY provides coverage for accidental death. An amount of Rs. 75000/- is given to the nominee under this scheme.
Additional Benefits of Aam Aadmi Bima Yojana
AABY does not only provide death as well as disability benefits but also guarantees that at least 2 children in the family continue to get education without a break. It gives a free scholarship of Rs. 100/- each month on a half-yearly basis to eligible children studying in class 9th to 12th.
Aam Aadmi Bima Yojana Eligibility Criteria
Entry Age: A person must be between 18 years and 59 years.
Income: The applicant must belong to Below Poverty Line (BPL).
Slightly above poverty line families who are part of any vocational group mentioned in the scheme.
Rural landless household.
AABY Premium
Initially, the premium to be charged under the scheme is Rs.200/ annum per member for Rs.30,000 out of which 50 percent will be subsidized from Social Security Fund.
For Rural Landless Household (RLH) remaining 50 percent premium will be borne by the State Government or Union Territory
For other occupational group, the remaining 50 percent premium will be borne by Nodal Agency and/or Member and/or State Government/ UT
