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Aam Adami Bima Yojana

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  • Last Updated : 22 Jun, 2022
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Introduction

Workers in the unorganized sector account for around 93 percent of the entire labor force in the country. The government has implemented some social security measures for specific occupational groupings, although coverage is limited. The vast majority of workers continue to lack social security coverage. Recognizing the need to provide these workers with social security, the Central Government has launched Aam Admi Bima Yojana.

Aam Aadmi Bima Yojana

The Aam Admi Bima Yojana was inaugurated on October 2, 2007. It is a social security system in India intended for low-income Indian households. This scheme can assist fishermen, car drivers, cobblers, and other people who are not normally on the payroll. Individuals with modest salaries may not consider saving money for a major catastrophe such as death or disability. The Aam Aadmi Bima Yojana (AABY) helps individuals deal with such upsetting circumstances.

The Aam Admi Bima Yojana was established with the intention of supporting persons in India who are both below and slightly above the poverty line (BPL). This Yojana’s premium is INR 320. The premium, however, is paid by the Central Government, the State Government, or a Nodal Agency, depending on the location.

India is the world’s second-most populous country and categorized as a developing country. As a result, a major proportion of the population is classed as low-income. The Indian government has undertaken a variety of measures for individuals to fight the significant issue of poverty. One such initiative is the Aam Admi Bima Yojana, which is intended to give financial support in times of need.

Main Goals of Aam Aadmi Bima Yojana:

  • To increase the money supply in the economy.
  • To provide coverage for both death and incapacity.
  • To extend India’s social security coverage.
  • To give financial support to low-income households.

Eligibilities of this Scheme:

The Aam Aadmi Bima Yojana is not open to all Indian citizens. An applicant must meet the following certain eligibility requirements in order to participate in the scheme. 

  • The candidate must come from a low-income family (BPL).
  • One member of the family will be eligible for coverage under this scheme. He or she should be the family’s only provider.
  • Applicants must be between the ages of 18 and 59 to be eligible for the Yojana.
  • Anyone who is a member of a rural landless household is eligible for the programme. 

Features of Aam Aadmi Bima Yojana:

The Aam Admi Bima Yojana is a social security scheme for low-income households. The plan includes the following features:

  • Members can get solutions to their queries quickly by contacting the local Life Insurance Corporation (LIC) location. You may get in touch with the team through phone, email, or in person.
  • All members’ data is digitized and tracked using a web-based system, which enables quick information transmission when necessary. This is also beneficial throughout the Claim Settlement procedure.
  • Aam Aadmi Bima Yojana offers a very low premium cost. This makes the plan more affordable, and beneficiaries won’t have to save for premium payments. Furthermore, the government covers half of the premium cost to help BPL.
  • The government is aiming to provide better services to the general public through using technological innovation. 

The Advantages of the Aam Aadmi Bima Yojana:

  • Accidents are unforeseen and can have serious consequences for family members. The Aam Aadmi Bima Yojana covers accidental death, and the nominee receives a payout of INR 75000 under this coverage.
  • The inability of a family member is devastating to the rest of the family. If the individual is the sole provider for the family, the family may suffer emotionally as well as financially. AABY increases the value of the home.
  • This method ensures that at least two of the family’s children continue their education. It provides a free scholarship of INR 100 per month to deserving students in grades 9 through 12 twice a year.
  • Adults between the ages of 18 and 59 are eligible for the Aam Aadmi Bima Yojana. If a plan member dies as a result of natural causes, LIC will pay a Death Claim of INR 30,000.

Some of the Beneficiary Groups of the Aam Aadmi Bima Yojana:

  • Carpenters
  • Beedi workers
  • Cobblers
  • Handloom weavers
  • Fishermen
  • Brick kiln workers
  • Physically handicapped people who are self-employed
  • Handicrafts artisans
  • Lady tailors
  • Papad workers who are associated with SEWA
  • Primary milk producers
  • Handloom and Khadi weavers
  • Auto drivers or rickshaw pullers
  • Sericulture
  • Power loom workers
  • Leather and tannery workers
  • Slat growers
  • Scheme for the urban poor
  • Toddy tappers
  • Safai karamcharis
  • Forest worker
  • Tendu leaf collectors
  • Forest workers
  • Firecrackers worker
  • Manufacture of paper products
  • Mineral products like earthen toys manufacture
  • Printing
  • Transport drivers association
  • Rural poor
  • Manufacture of wood products
  • Manufacture of leather products
  • Chemical products like candle manufacture
  • Construction worker
  • Transport Karamcharis
  • Plantation workers
  • Manufacture of paper products
  • Kotwal
  • Women associated with self-help groups
  • Textile
  • Overseas Indian workers
  • Coconut processors
  • Sheep breeders
  • Anganwadi teachers

Related Frequently Asked Questions and Answers:

1)  When was  Aam Aadmi Bima Yojana launched and what is its aim?

Ans: On October 2, 2007, the Aam Admi Bima Yojana was launched. It is an Indian social security scheme aimed at low-income Indian households. This program can help fishermen, automobile drivers, cobblers, and others who are not ordinarily on the payroll. Individuals with low incomes may not consider accumulating money to prepare for a significant event such as death or incapacity. The Aam Aadmi Bima Yojana (AABY) assists people in dealing with such unpleasant events.

2) What are the goals of the Aam Aadmi Bima Yojana Scheme?

Ans: The main goals of the Aam Aadmi bima yojana are:

  • To increase the money supply in the economy.
  • To provide coverage for both death and incapacity.
  • To extend India’s social security coverage.
  • To give financial support to low-income households.

3) What are the advantages of the Aam Aadmi Bima Yojana?

Ans: Following are the advantages:

  • The Aam Aadmi Bima Yojana is available to adults aged 18 to 59. If a plan member dies from natural circumstances, LIC will pay a Death Claim of INR 30,000.
  • Accidents are unexpected and can have significant effects. Accidental Death is covered by the Aam Aadmi Bima Yojana, and the nominee receives payment of INR 75000 under this coverage.
  • The incapacity of a family member comes as a major shock to the rest of the family. If the individual is the family’s sole earner, the family may suffer emotionally as well as financially. AABY gives the home a financial boost.

4) Write the Eligibilities of the Aam Aadmi Bima Yojana?

Ans: For eligibility, the beneficiary must have fulfilled certain conditions:

  • To be eligible for the Aam Aadmi Bima Yojana, applicants must be between the ages of 18 and 59.
  • The applicant must come from a family that is below the poverty line (BPL).
  • The scheme is open to anyone who is a member of a rural landless household.
  • One family member will be eligible for coverage. He or she should be the sole provider for the family.

5) Write the Features of the Aam Aadmi Bima Yojana Scheme?

Ans: Following are the features of the Aam Aadmi Bima Yojana scheme:

  • Aam Aadmi Bima Yojana has an exceptionally cheap premium cost. This makes the plan more reasonable, and you won’t have to worry about saving up for premium payments. 
  • In addition, the government pays half of the premium cost.
  • With the support of technological innovation, the government is attempting to deliver better services to the general people. 
  • Members can readily find answers to their questions by contacting the nearest Life Insurance Corporation (LIC) branch. You can contact the team by phone, email, or in person.
  • All members’ data is digitized and tracked utilising a web-based system that allows for speedy information transfer when needed. This is also useful throughout the Claim Settlement process.
     

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