AABY
Aam Aadmi Bima Yojana
6.8/10The Aam Aadmi Bima Yojana (AABY) is a social security scheme for rural landless households implemented by the Ministry of Labour & Employment, Government of India. The scheme provides insurance coverage to the head of the household or an earning member of the family in the age group of 18 to 59.
States / UT: All India
Ministry / nodal: Ministry Of Labour and Employment
Scheme for: Family
Scheme profile
DBT (direct benefit transfer): Yes
Categories: Social welfare & Empowerment
Target beneficiaries: Individual
Tags: Bima, Insurance, Labour Welfare, DBT, Incentive
Details
The Aam Aadmi Bima Yojana (AABY) is a social security scheme launched by the Ministry of Labour & Employment, Government of India, and implemented through LIC. It provides death and disability coverage to members of 48 specific occupational/vocational groups, rural landless households, and unorganized workers. Beneficiaries aged 18–59 years pay subsidized annual premiums of ₹200 for insurance coverage. Additionally, scholarships are granted for children studying in grades 9–12, ensuring holistic family welfare.
Benefits
- Life Insurance Coverage:
- Natural death: ₹30,000/-
- Death due to accident: ₹75,000/- Disability Benefits:
- Total permanent disability (loss of two eyes or two limbs) due to accident: ₹75,000/-
- Partial permanent disability (loss of one eye or one limb) due to accident: ₹37,500/- Scholarship:
- Two children of the beneficiary studying between 9th to 12th Standard shall receive ₹100/- per month (for each child half yearly – on 1st July and on 1st January, each year). Annual Premium Amount: ₹200/- per member
- Subsidy from Social Security Fund (SSF): 50% of the total premium (₹100/-) is subsidized by the Government of India through the Social Security Fund (SSF). - Premium Payment for Rural Landless Households (RLH): The remaining 50% of the premium (₹100/-) is paid by the respective State Government or Union Territory. - Premium Payment for Other Occupational Groups: The remaining 50% of the premium (₹100/-) is covered by a combination of contributions from the Nodal Agency, the Member, and/or the State Government/Union Territory
Life Insurance Coverage:
- Natural death: ₹30,000/-
- Death due to accident: ₹75,000/-
Disability Benefits:
- Total permanent disability (loss of two eyes or two limbs) due to accident: ₹75,000/-
- Partial permanent disability (loss of one eye or one limb) due to accident: ₹37,500/-
Scholarship:
- Two children of the beneficiary studying between 9th to 12th Standard shall receive ₹100/- per month (for each child half yearly – on 1st July and on 1st January, each year).
Annual Premium Amount: ₹200/- per member.
- Subsidy from Social Security Fund (SSF): 50% of the total premium (₹100/-) is subsidized by the Government of India through the Social Security Fund (SSF). - Premium Payment for Rural Landless Households (RLH): The remaining 50% of the premium (₹100/-) is paid by the respective State Government or Union Territory. - Premium Payment for Other Occupational Groups: The remaining 50% of the premium (₹100/-) is covered by a combination of contributions from the Nodal Agency, the Member, and/or the State Government/Union Territory.
Eligibility
- The applicant should be aged between 18 and 59 years.
- The applicant should normally be the head of the family or an earning member.
- The applicant’s family should be categorized as below the poverty line (BPL) or marginally above the poverty line.
- The applicant should belong to an identified occupational or vocational group.
- The applicant should be part of a rural landless household.
How useful is this scheme?
A practical look at this scheme for citizens
AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.
- Accessibility7.0
- Financial impact8.0
- Rural utility6.0
- Awareness7.5
- Simplicity5.0
- Inclusivity7.0
What problem does this scheme solve?
The Aam Aadmi Bima Yojana provides essential insurance coverage for rural landless households, addressing financial security needs.
Key challenges addressed
- Financial insecurity due to death or disability
- Lack of insurance for low-income families
Most beneficial for
- Rural landless households
- Unorganized workers
- Families below or marginally above the poverty line
Likely challenges
- Complex application process
- Limited awareness among potential beneficiaries
- Dependence on local agencies for claims
Practical insights for citizens
Beneficiaries may face challenges in accessing services due to bureaucratic hurdles
Rural challenges
- Limited access to information
- Dependence on local officials for guidance
Digital challenges
- Low digital literacy among target beneficiaries
- Limited online application options
Implementation bottlenecks
- Delayed processing of claims
- Inconsistent communication from nodal agencies
Awareness challenges
- Low awareness among eligible populations
- Need for targeted outreach programs
Application analysis
- Application mode
- Offline office
- Documents burden
- Moderate, requires specific documents for claims
- Verification complexity
- Moderate, involves multiple steps and agencies
- Office dependency
- High, requires interaction with local nodal agencies
- DBT dependency
- Low, as benefits are disbursed through LIC
- CSC support
- Limited, may vary by region
- Estimated citizen effort
- Moderate, requires multiple visits and document submissions
Estimated beneficiary reach
Benefit analysis
- Benefit type
- Cash and insurance coverage
- Benefit frequency
- One-time for insurance claims, half-yearly for scholarships
- Benefit practicality
- Practical for families needing immediate financial support
- Financial meaningfulness
- Moderate, as the benefits provide essential support but may not cover all needs
- Long-term impact
- Positive, as it encourages financial security and education for children
Plain-language guidance
The Aam Aadmi Bima Yojana offers insurance coverage and scholarships for families in rural areas. It helps protect against financial loss due to death or disability.
- Who should apply
- Rural households with members aged 18-59 who are below or marginally above the poverty line.
- Who may struggle
- Individuals unfamiliar with insurance processes or lacking necessary documents.
- Best application route
- Apply via local nodal agency with required documents.
This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.
Application Process
Offline
Death Claim Procedure:
Step 1: The nominee of the deceased member submits a claim application to the designated official of the Nodal Agency along with the original death certificate and an attested copy.
Step 2: The designated official verifies the submitted claim documents.
Step 3: The Nodal Agency prepares a claim packet, including the completed claim form, the death certificate, and a certificate confirming the deceased was the head or earning member of a BPL or marginally above BPL family under eligible occupations.
Step 4: The verified claim packet is forwarded to LIC for processing.
Accident Claim Procedure:
Step 1: The nominee submits an application along with the Death Registration Certificate and additional documents, including the FIR, Post Mortem Report, Police Inquest Report, and Police Conclusion Report or Final Report.
Step 2: The Nodal Agency verifies the documents and forwards the claim to LIC for further processing.
Scholarship Claim Procedure:
Step 1: The member whose child is eligible for a scholarship fills out a scholarship application form twice a year and submits it to the Nodal Agency.
Step 2: The Nodal Agency identifies the eligible students and prepares a list of beneficiaries.
Step 3: The list, along with details such as the student’s name, school, class, member details, and NEFT information, is sent to LIC’s P&GS unit.
Step 4: LIC disburses the scholarship amount directly to the beneficiary’s bank account through NEFT every half year on 1st July and 1st January.
Clarifications
Additional points from the scheme information published on myScheme (not legal advice).
- What is the "Aam Aadmi Bima Yojana (AABY)"?
The "Aam Aadmi Bima Yojana (AABY)" is a social security scheme launched by the Government of India to provide life and disability insurance to members of identified occupational groups, rural landless households, and unorganized workers.
- Who implements the AABY scheme?
The scheme is implemented by the Life Insurance Corporation (LIC) of India through nodal agencies such as state governments, central ministries, or other institutional arrangements.
- What is the age limit for beneficiaries under AABY?
Beneficiaries must be between the ages of 18 and 59 years to be eligible for the scheme.
- Who is eligible to apply for AABY?
The head or earning member of a family below the poverty line (BPL) or marginally above the poverty line (APL) in identified occupational groups or rural landless households is eligible to apply.
- What benefits does AABY provide in case of natural death?
In case of natural death, AABY provides an insurance cover of ₹30,000/- to the nominee of the deceased.
- What benefits are provided under AABY for disability?
The scheme offers ₹75,000/- for total permanent disability and ₹37,500/- for partial permanent disability due to an accident.
- What is the scholarship benefit under AABY?
Two children of the insured, studying in grades 9 to 12, are eligible for a scholarship of ₹100 per month, payable half-yearly.
- How are claims processed under AABY?
Claims are processed by LIC and are directly transferred to the beneficiary's bank account via NEFT or other approved modes after verification by the nodal agency.
- What documents are required for accident claims?
Accident claims require additional documents, including a copy of the FIR, Post Mortem Report, Police Inquest Report, and Police Final Report or Conclusion Report.
- When are scholarships disbursed under AABY?
Scholarships are disbursed twice a year, on 1st July and 1st January, directly to the bank accounts of eligible students through NEFT.
Official links
References
- Guidelines 1
- https://labour.gov.in/schemes/aam-admi-beema-yojana
- Guidelines 2
- https://labour.assam.gov.in/scheme-page/aam-aadmi-bima-yojana
- Press Release (PIB)
- https://pib.gov.in/newsite/printrelease.aspx?relid=124604
Apply
Apply nowOpens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.
Frequently asked questions
- What is the purpose of Aam Aadmi Bima Yojana?
- Aam Aadmi Bima Yojana is a government welfare initiative designed to support Family, Individual through benefits related to Social welfare & Empowerment, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
- Who can apply for Aam Aadmi Bima Yojana?
- Eligibility for Aam Aadmi Bima Yojana may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
- What benefits are offered under Aam Aadmi Bima Yojana?
- Benefits under Aam Aadmi Bima Yojana may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
- Which department manages Aam Aadmi Bima Yojana?
- Aam Aadmi Bima Yojana is managed by Ministry Of Labour and Employment and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
- Can users apply online for Aam Aadmi Bima Yojana?
- Yes, eligible applicants may be able to apply online for Aam Aadmi Bima Yojana through official government portals, authorised service centres, or digital application systems depending on the implementation process.
- Is Aadhaar mandatory for Aam Aadmi Bima Yojana?
- Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
- Where can users apply for Aam Aadmi Bima Yojana?
- Applications for Aam Aadmi Bima Yojana may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
- What documents may be required for Aam Aadmi Bima Yojana?
- Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
- Is Aam Aadmi Bima Yojana a central government scheme?
- Yes, Aam Aadmi Bima Yojana is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
- Does Aam Aadmi Bima Yojana provide healthcare or insurance support?
- Aam Aadmi Bima Yojana may provide healthcare assistance, insurance coverage, cashless treatment support, medical reimbursement, or hospital-related benefits depending on the scheme structure.
- Can beneficiaries use Aam Aadmi Bima Yojana at government hospitals?
- Eligible beneficiaries may be able to access services at empanelled hospitals, government healthcare facilities, or authorised healthcare providers depending on scheme participation rules.
- Can CSC centres help users apply for Aam Aadmi Bima Yojana?
- Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
- How can users check the latest updates for Aam Aadmi Bima Yojana?
- Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
- Can beneficiaries track application status for Aam Aadmi Bima Yojana?
- Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
- Where can users get help for Aam Aadmi Bima Yojana in All India?
- Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
- Which nearby public services may help with Aam Aadmi Bima Yojana applications?
- Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.