Aam Aadmi Bima Yojana (AABY) {आम आदमी बीमा योजना}

India is the second-most populous country in the world. In our country, we have a workforce of people from different income strata. India is also known as a developing country. In India, there are a large number of people who belong to low-income groups. There are a lot of schemes launched by the government of India to help fight the grave issue of poverty. Among all schemes, the one scheme is The Aam Aadmi Bima Yojana which was also launched to provide financial help in the time of need. This scheme is also known as the “Common Man’s Insurance Scheme.” This scheme is beneficial for those people who keep moving the economic circle of the country.


Details about the AABY are mentioned below:

  • The Aam Aadmi Bima Yojana was started on 2nd October 2007. 
  • This is a unique scheme that was launched to provide financial support to the low-income families of India. 
  • If the candidates want to get the benefit from this scheme, they are must-have payroll, for example, fishers, auto drivers, cobblers, etc. 
  • There are a lot of low-income families who are not able to earn enough money to face grave contingency like death or disability. 
  • The Aam Aadmi Bima Yojana (AABY) provides them with financial aid to face such unfortunate situations like death as well as disability.

What Is Covered Under Aam Aadmi Bima Yojana?

The Aam Aadmi Yojana provides able to provide financial support to all the eligible members. The financial support is provided if any unfortunate event like death or disability occurs. Here all the coverage of the Aam Aadmi Bima Yojana is mentioned:

Death due to natural causes

The financial support will be provided to the eligible member if natural death occurs. To get financial help, the family has to show a death certificate of the deceased at the time of claim.

Partial Disability or Permanent Total Disability

This scheme also provides benefits to the person who got Partial Disability or Permanent Total Disability. For this claim, the candidate has to show a medical certificate that is issued by a government medical practitioner and which states the nature of the disability.

Coverage and Sum Assured



Death from natural causes  


Accidental death


Partial disability


Permanent total disability



Rs.100/- per month per child

What is not Covered under Aam Aadmi Bima Yojana?

The motive of the Aam Aadmi Bima Yojana is to provide monetary help to those who are in need due to unlucky events like death as well as disability. Here are mentioned the entire situations that are not included under the Aam Aadmi Bima Yojana.

  • Cost of hospitalization
  • Death or disability due to mental disorders
  • Suicide
  • If death or disability occurs due to a war-like situation in the country
  • Taking part in dangerous and adventurous sports
  • Taking part in illegal activities
  • Loss of life or disability due to substance abuse

General Features

Aam Aadmi Bima Yojana provides financial support to those people who belong to low-income families. All the main key features of Aam Aadmi Bima Yojana are mentioned below:


The Aam Aadmi Bima Yojana has a meagre cost of the premium. So this scheme is the best scheme for needy families as they do not even need to think about arranging money for paying the premiums of Aam Aadmi Bima Yojana. There is the half amount of the premium paid by the government. So the person has to pay just half the amount of the premium. So this plan is affordable for every person in the country.

Technologically Advanced Insurance

The better technology has helped the government to offer excellent quality services to the people of the country. Aam Aadmi Bima Yojana is an excellent example of it. The data of the entire person is digitized as well as monitored with the help of a web-based system. So with this, we can do a quick exchange of information whenever need. This better technology is also helpful at the time of the claim process.

Prompt Assistance

The person can get quick help as well as the solution to his problems solved by getting in touch with the nearest Life Insurance Corporation (LIC) branch. The person is also able to contact with the help of call or email as well.


The AABY provides a lot of benefits to the members. All the details about the benefits under this scheme are mentioned below: 

Coverage for Death from Natural Causes

The entry age for Aam Aadmi Bima Yojana is between 18 to 59 years. If a member suffers death due to natural causes under this plan, LIC will settle a death claim as well as provide financial support of Rs.30, 000.

Coverage for Disability

If any member of the family suffers from any type of disability, then it is a massive shock for the family members. This shock is reduced by providing better help to another family member of the disabler’s family. With the help of Aam Aadmi Bima Yojana, the person can get a disability claim that is rupees 37500/- for permanent partial disability as well as rupees 75000/- for permanent total disability because of an accident.

Coverage for Accidental Death

The Accidents do not see whether a person is rich or reduced as well as unpredictable accidents can result in grave consequences. The Aam Aadmi Bima Yojana provides coverage for accidental death. Under this coverage of the plan an amount of Rs. 75000/- is paid to the nominee of the plan.

Additional Benefit

Not only death and disability benefit provided under the Aam Aadmi Bima Yojana but also it assured the family to continue receiving education at least for two children in the family without a break. It provides a free scholarship of Rs. 100/- each month on a half-yearly based on the class of the children.

Eligibility Criteria

Aam Aadmi Bima Yojana does not provide benefits to every Indian citizen. If a person wants to get benefits of this scheme, he/she must have to fulfil the eligibility criteria of the plan. Details about the eligibility criteria are mentioned below:

  • To get enrolled under the Aam Aadmi Bima Yojana, the age of the candidate must be between 18 years to 59 years.
  • The applicant must belong to a Below Poverty Line (BPL) family as well as the economically weaker section. 
  • The people who are above the poverty line are not directly enrolled under this plan they are a part of any occupational group defined under the scheme. 
  • A person who belongs to a rural area must be a landless household.
  • One member can take the benefits of this scheme from one family. And the member enrolling under this scheme must be the breadwinner of the family.

How to Register under Aam Aadmi Bima Yojana?

The process of registering under Aam Aadmi Bima Yojana is quite different from buying a regular insurance plan but not difficult. All the steps to enrol under the plan mentioned below:

  • This scheme is the national scheme, so the candidate has to visit the Nodal agency that is chosen to carry out the registration process. 
  • A nodal agency any can be any institutional pact that is appointed by the central or state governments or Union Territory of India. The agency may be an NGO as well.
  • When you are completing the registration process, it is necessary to mention the nominee. If you do not indicate any nominee, then you are not eligible to get the claim. The nominee is required to specify if you want to get a claim.
  • The family members are not able to get the claim, so the nominee is necessary to mention.

Documents Required

The candidates have to provide some necessary documents to complete the registration process. All required documents are mentioned below:

  • Application form
  • Identity proof
  • Address Proof
  • Nominee application form
  • Income certificate

AABY Premiums

The Aam Aadmi Bima Yojana was launched to provide the benefit to the people belonging Below Poverty Line of India as well as to those who are just slightly above the poverty line. The premium amount of the plan is an annual payment. The eligible people have to pay only half the amount of the premium. The government itself will pay the other half amount. The premium amount for Aam Aadmi Bima Yojana is just 320 rupees. And this amount was also divided between the government of India as well as policyholders.

How to Claim AABY?

The claim process for Aam Aadmi Bima Yojana is quite accessible from many other insurance plans. This scheme provides support in an unfortunate event of death or disability of the policyholder. Here is the process mentioned to claim Aam Aadmi Bima Yojana claim:

Claim Procedure for Death

In case of the death of the policyholder, the nominee has to apply the form with the death certificate as proof. The Aam Aadmi Bima Yojana must be active when you are submitting the claim form. The nominee can file the claim to the designated Nodal Agency officer. After this, the v verification process will be completed. In the verify process details about policyholders will be checked like he or she belongs to the Below Poverty Line (BPL) or marginally above the BPL family.

Documents Required for a Death Claim

The nominee has to submit original as well as copies of the death certificate.

Claim Procedure for Accidental Death

The claim process for accidental death is also the same as the claim process for natural death. The documents required, along with the claim form and death certificate, are mentioned below:

  • Copy of FIR
  • Police Conclusion Report /Final Report of Police
  • Police Inquest Report
  • Post Mortem Report

Claim Procedure for Scholarships

To get a scholarship under Aam Aadmi Bima Yojana Scholarship, an online Application Form should be filled by the beneficiary half-yearly as well as submitted to the appointed Nodal Agency. 

The Nodal Agency will select the eligible students for the scholarship. The government will pay the free scholarship of Rs.100/- per month for one child. Two children from one family can get this benefit. The beneficiary has to submit the following details:

  • Name of the student
  • Name of the school
  • Class in which the student is studying
  • AABY master policy number
  • Name of the policyholder 
  • NEFT details
  • Membership number