Aam Aadmi Bima Yojana (AABY) - Application, & Benefits

By Okbima 14 Feb 2024
 Aam Aadmi Bima Yojana (AABY)


Aam Aadmi Bima Yojana Scheme is a social security scheme in India that aims to provide financial assistance to people living below the poverty line. The application for this scheme can be done through eligible societies and banks.

What is Aam Aadmi Bima Yojana (AABY)?

The Aam Aadmi Bima Yojana (AABY) is a social security scheme launched in India on October 2, 2007. It is designed to provide financial protection to low-income families in India. The scheme specifically targets individuals who may not be part of a regular payroll, such as fishermen, car drivers, cobblers, and others engaged in informal occupations.


Benefits of the Aam Aadmi Bima Yojana Scheme

The Aam Aadmi Bima Yojana (AABY) offers several benefits to its members, providing financial support during challenging situations. 

Here are some key benefits:

Natural Death Coverage: AABY covers individuals in the age group of 18 to 59. In the unfortunate event of natural death, the scheme provides a Death Claim of  INR 30,000 to the nominee, offering financial assistance to the deceased member's family.

Disability Coverage: AABY offers financial assistance in the case of disability, which can be a significant financial burden for the affected family. For partial disability, the scheme provides a Disability Claim of INR 37,500. In the case of permanent disability, the Disability Claim is INR 75,000, helping the family cope with the challenges of a long-term disability.

Accidental Benefits: Accidents can have unforeseen consequences, impacting the financial stability of the affected family. AABY covers Accidental Death, providing a benefit of INR 75,000 to the nominee. This amount can help the family manage expenses during a difficult time.

Scholarship Benefits: AABY ensures that education for the children in the family remains uninterrupted, especially if the insured member is the sole earner. The scheme offers a free scholarship of INR 100 per month to eligible students in grades 9 to 12 on a half-yearly basis. This support contributes to the educational expenses of the family.


What is Covered Under Aam Aadmi Bima Yojana?

The Aam Aadmi Bima Yojana (AABY) provides coverage to eligible members in the event of unfortunate incidents. 

Here's what is covered under the policy:

Death due to Natural Causes: In the unfortunate event of the insured member's death due to natural causes, the AABY provides coverage. A death certificate is required as documentation when making a claim.

Death due to Accidents: AABY also covers death resulting from accidents, offering financial assistance to the nominee. To process a claim for death due to accidents, a medical certificate indicating that the cause of death was an accident is necessary.

Partial Disability or Permanent Total Disability: Coverage is extended to individuals who experience partial disability or permanent total disability. To claim benefits for disability, a medical certificate issued by a government medical practitioner is required. This certificate should detail the nature of the disability.


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What is Not Covered Under Aam Aadmi Bima Yojana?

Some exclusions are not covered under the Aam Aadmi Bima Yojana Scheme such as attempted suicide, mental disorders, etc.

Attempted Suicide or Self-Inflicted Injuries: Incidents involving self-harm or attempted suicide are not covered by the Aam Aadmi Bima Yojana.

Injuries/Accidents Arising from Dangerous & Adventurous Sports: Any injuries or accidents that result from engaging in dangerous or adventurous sports activities are not covered.

Death or Disability Due to a War-Like Situation in the Country: The scheme does not provide coverage for death or disability from situations resembling war or war-like conditions in the country.

Mental Disorders: Disabilities or deaths from mental disorders are not covered under the Aam Aadmi Bima Yojana.

Loss of Life or Disability Due to Substance Abuse: Incidents related to substance abuse leading to loss of life or disability are excluded from coverage.

Injuries Arising from Illegal Activities: Any injuries or disabilities arising from engaging in illegal activities are not covered by the scheme.


Occupations Covered Under Aam Aadmi Bima Yojana (AABY)

Aam Aadmi Bima Yojana Scheme covers so many occupations in India whether people are working in organized or unorganized sectors such as agriculture, manufacturing, services, construction, printing, etc.


  1. Agriculturists

  2. Fishermen

  3. Sheep Breeders

  4. Primary Milk Producers


  1. Manufacture of Wood Products

  2. Handloom & Khadi Weavers

  3. Brick Kiln Workers

  4. Leather and Tannery Workers


  1. Anganwadi Teachers
  2. Safai Karamcharis
  3. Transport Drivers Association
  4. Transport Karamcharis
  5. Auto Drivers or Rickshaw Pullers
  6. Food Stuffs like Sugar or Khandsari
  7. Mineral Products like Earthen Toys Manufacture
  8. Beedi Workers
  9. Forest Workers
  10. Overseas Indian Workers
  11. Scheme for the Urban Poor
  12. Women Associated with Self-Help Groups
  13. Brick Kiln Workers
  14. Hamals
  15. Papad Workers who are Associated with SEWA
  16. Sericulture
  17. Women of Hilly Areas
  18. Carpenters
  19. Handicraft Artisans
  20. Physically Handicapped People who are Self-Employed
  21. Kotwal
  22. Chemical Products like Candle Manufacture
  23. Plantation Workers
  24. Salt Growers
  25. Overseas Indian Workers
  26. Cobblers
  27. Lady Tailors
  28. Powerloom Workers
  29. Tendu Leaf Collectors
  30. Unorganized Workers Covered under RSBY
  31. Coconut Processors
  32. Leather and Tannery Workers
  33. Primary Milk Producers
  34. Textile


  1. Firecrackers’ Workers

  2. Manufacture of Paper Products

  3. Rural Poor

  4. Unorganized Workers Covered under the Rashtriya Swasthya Bima Yojana

  5. Toddy Tappers

 Construction and Related

  1. Construction Workers

 Printing, Rubber, and Coal Products

  1. Printing

  2. Rubber Products

  3. Coal Products


Aam Aadmi Bima Yojana Premiums

The Aam Aadmi Bima Yojana (AABY) offers a low-cost premium to make it accessible to individuals below the poverty line and those slightly above it. 

Here's an example of  the premium payment:

Total Annual Premium: The actual premium for Aam Aadmi Bima Yojana is 320 rupees per year.

Premium Division: The payment is divided between the policyholder and the Government of India. The eligible person is required to pay only 50% of the total premium amount.

Policyholder's Contribution: The policyholder contributes 50% of the annual premium, which, in this case, would be 320 rupees x 50% = 160 rupees per year.

Government Contribution: The remaining 50% of the premium is covered by the Government of India. The central government, state government, or a designated nodal agency, depending on the region, contributes this portion.


How To Enroll In Aam Aadmi Bima Yojana?

Enrolling in the Aam Aadmi Bima Yojana (AABY) involves a specific process that is different from other life insurance plans

Here is a step-by-step guide for enrollment:

Visit the Nodal Agency: The applicant needs to visit the Nodal Agency appointed for AABY enrollment. Nodal Agencies can be institutions appointed by the central or state governments, Union Territory of India, or designated NGOs.

Provide Necessary Information: During the visit, the applicant will need to provide necessary information, including personal details and occupation. The scheme is targeted at individuals below the poverty line or slightly above it, so income-related information may be required.

Nominee Details: It is crucial to mention the nominee while enrolling in the scheme. Clear mention of the nominee is essential for the claims process, ensuring that the benefits reach the intended family member in case of an unfortunate event.

Complete Enrollment Form: The applicant will need to complete the Aam Aadmi Bima Yojana enrollment form provided by the Nodal Agency.

Submit Required Documents: Necessary documents, such as proof of identity, income certificate, and other relevant details, may be required during the enrollment process.

Verification Process: The Nodal Agency will carry out a verification process to ensure that the applicant meets the eligibility criteria for the scheme.

Receive Confirmation: Once the enrollment is complete and verified, the applicant will receive confirmation of their inclusion in the Aam Aadmi Bima Yojana.

Nominee Acknowledgment: The applicant needs to acknowledge the nominee designation, as this plays a crucial role in the claims process.


 How to Download Aam Aadmi Bima Yojana Application Form?

The AABY is a social security program introduced by the Indian government to cater to the diverse population of the country, which comprises different states and people speaking various languages. To apply for the Aam Aadmi Bima Yojana, individuals can access the specific website dedicated to their respective state government. 


For example, if residing in Uttar Pradesh, you can visit the official Uttar Pradesh Government Website to get information and guidance regarding the application process of this scheme.


Documents Required To Apply for Aam Aadmi Bima Yojana

When applying for the Aam Aadmi Bima Yojana, certain documents are typically required to complete the application process. 

Here is a list of documents that may be necessary:

Application Form: A duly filled and signed application form is a primary requirement for applying to the Aam Aadmi Bima Yojana.

Identity Proof: Valid identity proof documents are essential. This may include Aadhar Card, Voter ID, Passport, PAN Card, and Driver's License.

Income Certificate: An income certificate is often required to establish eligibility based on income criteria. This document may include Salary slips, Income tax returns, and Employer certificates.

Address Proof: Proof of residence is necessary for verification purposes. Accepted documents may include Utility bills (electricity, water, gas), Aadhar Card with address, Voter ID, and Passport.

Nominee Application Form: The nominee application form is crucial to designate a beneficiary who will receive the benefits in case of the insured person's demise.


Eligibility Criteria for Aam Aadmi Bima Yojana

To be eligible for the Aam Aadmi Bima Yojana, individuals must meet specific criteria. Here is the general guideline for enrollment in this scheme.

Entry Age: The applicant must be between 18 years and 59 years of age at the time of enrollment.

Income: The applicant should belong to one of the following categories Below Poverty Line (BPL) family or Slightly above the poverty line families that are part of any vocational group defined in the scheme.

Members Covered: Only one member of the family is eligible to get coverage under the Aam Aadmi Bima Yojana. The eligible member should be the earner of the family.


How to File a Claim for Aam Aadmi Bima Yojana?

The Aam Aadmi Bima Yojana (AABY) provides a straightforward claim process in the event of death, accidental death, disability, or for availing scholarships. 

Below is a detailed guide for each scenario:

 Claim Procedure for Death

• The nominee must apply for the claim with a Death Certificate.

• The AABY policy should be active at the time of the policyholder's death.

• Submit the claim to the designated Nodal Agency officer for verification.

• Verification includes confirming that the deceased was an earning member from a Below Poverty Line (BPL)/Marginally above-BPL family.

• The occupation of the deceased person will also be considered.


Claim Procedure for Accidental Death

• Similar to the process for natural death with additional documents:

• Submit a copy of the FIR, Police Conclusion Report/Final Police Report, Police Inquest Report, and Post Mortem Report.


Claim Procedure for Disability

• For total or partial disability claims:

• Submit supporting documents to prove disability.

• Evidence includes police FIR, video recording or photographs of the accident, and a medical certificate issued by a Government Civil Surgeon/qualified  Government Orthopedician.


Claim Procedure for Scholarships

• Students eligible for the scholarship should fill out the Aam Aadmi Bima Yojana Scholarship Online Application Form.

• The Nodal Agency selects eligible students and forwards the list to the concerned P&GS unit.

• The monetary benefit is processed on 1st July and 1st January via NEFT to the student’s account.

• A maximum of two children per eligible family studying between ninth and twelfth standard are eligible for the scholarship.



In conclusion, the Aam Aadmi Bima Yojana Scheme is a crucial social security scheme introduced by the Indian government to provide financial assistance and support to vulnerable sections of society. The scheme aims to enhance the socio-economic conditions of the economically weaker segments, including rural landless householders, small and marginal farmers, artisans, and other low-income groups. 


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Under the Aam Aadmi Bima Yojana (AABY), individuals who experience partial disability due to the loss of eyes or limbs are provided coverage. Despite their partial disability, these individuals may still have the capability to perform daily tasks or engage in employment to sustain their livelihood.

Administered by the Life Insurance Corporation of India (LIC), the scheme was initiated in the year 2007.

To apply for the Aam Aadmi Bima Yojana LIC, you need to fill out the necessary forms and submit the required documents to the LIC office.

To ensure a smoother and more efficient claim process for both the insurer and the insured, it is necessary to provide the NEFT details of members during enrollment. These details will be utilized in the event of a claim, making the process faster and more convenient.

The Aam Aadmi Bima Yojana was started on the 2nd of October 2007.

The Aam Admi Bima Yojana is provided by LIC, with the insurer being accountable for addressing any concerns or questions about the scheme. To find the Aam Admi Bima Yojana Helpline Number, you can visit the LIC website.

The Aam Aadmi Bima Yojana (AABY) was launched to provide social security and financial support to low-income individuals and their families in the event of disability, accidental death, or natural death.

To apply for the Aam Aadmi Bima Yojana (AABY), it is necessary for you to personally visit the designated Nodal agency responsible for handling the enrollment procedure. This agency, appointed by the Indian central or state governments or UT, may also involve an NGO as part of its institutional arrangement.

The affordability of AABY's premium is made possible by a subsidy provided by the Social Security Fund, covering half the premium amount. Consequently, the Social Security Fund plays a vital role in the implementation of the Aam Aadmi Bima Yojana.

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