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Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana is a social security scheme introduced by the Government of India. The scheme focuses on the people of rural and landless households. The beneficiaries can apply for this scheme without any cost as the specified premium amount of Rs.200 is mutually shared by the Central and State Governments.

The Ministry of Finance organizes the security scheme of Aam Aadmi Bima Yojana under the Government of India. The two schemes of Aam Admi Bima Yojana and Janashree Bima Yojana is combined and renamed as “Aam Admi Bima Yojana”. In this article, we look at the features, benefits, eligibility criteria and the procedure of claiming the benefits of the scheme in detail.

Salient Features

This scheme focuses on changing the topography of the Indian economy. The primary intention of this scheme is to provide social security and financial aid to the people of rural India. The scheme not only includes the people who are classified under below poverty line, as the places which do not have any other access to urban facilities such as big hospitals or a good pharmacy are also covered.  Further, the scheme is extended to those who are laid back due to the lack of proper aid, the likes of whom includes India’s cherished middle class citizens.

Benefits of the Scheme

  • If the person had a natural death, the nominee or the family member of the policyholder would be conferred a sum of Rs. 30,000/-
  • If the person died due to accident or has been permanently incapacitated in an accident, Rs. 75,000 will be given to the nominee or the family member of the policyholder.
  • If the person met with permanent partial disability in an accident which results in the loss of an eye or limb or any other mishaps; Rs. 37,500 will be given to the nominee or the family member of the policyholder.

Note: Scholarship benefits will be provided to two of the beneficiary’s children pursing grade  9 to 12. A sum of Rs. 100/- per month must be remitted for each child at every year on a half early basis.


  • Applicant should be aged between the range of 18 to 59 years.
  • Applicant should be the head of the family.
  • The applicant may be one of the earning members of the family which is classed under below poverty line (BPL)
  • The applicant may be above the poverty line but must be identified under vocational group / rural landless household.

Documents Required

  • Family Smart Card
  • AADHAR Card
  • Extract from Birth Register
  • Extract from School Certificate
  • Voter’s List
  • Identity Card Issued by Reputed Employer / Government Department


The policyholder has to pay no premium as the premium amount of Rs. 200/- will be equally shared by both the Central and State Government.  Out of the total insurance amount of Rs.30,000, 50% will be subsidized by the social security fund.The remaining 50% of the amount will be funded by the State Government and the Nodal agency to the rural landless householder and other occupational groups respectively.

Nodal Agency

The nodal agency is a direct concern office which is deputed either for consultation, supervision, execution/implementation or for all these specified reasons with respect to a particular scheme or project initiated by the government.

Claim Procedure

P&GS Unit of LIC will settle the claims connected with death or disability. Payment will either be sent through NEFT or money will be directly transferred to the beneficiary’s bank account. Before getting the claim amount, the beneficiary should submit the approval from concerned authorities to the LIC.

Death Claim Procedure

  • The application will be submitted along with the death certificate to the official of Nodal Agency.
  • The designated official of concerned Nodal Agency will verify the claim papers.
  • The papers will be submitted by the officer that includes the application, death certificate, whether the beneficiary belongs to the BPL or Marginally above BPL family, and a statement on whether or not they are associated with the occupation group.
  • Finally, the Nodal Agency will submit the original certificate along with a copy duly attested.

Accident Claim Procedure

Along with the death registration certificate, the following documents must be submitted to Nodal Agency.

  • FIR Copy
  • Postmortem Report
  • Police Inquest Report
  • Police Conclusion Report/ Final Report of Police

Scholarship Claim Procedure

Every six months, the application should be submitted to the Nodal Agency with the following documents.

  • The Nodal Agency will identify and verify the students.
  • The Nodal Agency official will submit the list of beneficiary students list to the P&GS unit along with the following details:
    • Name of the student
    • Class
    • Member’s name
    • Master policy no
    • Membership no
    • NEFT details for direct payment

After the completion of these formalities, the LIC will credit the scholarship amount to the beneficiary by bank account or NEFT.