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Home / Health Insurance / Articles / Government Schemes / AABY: Aam Aadmi Bima Yojana: Application, Claim Procedure, Benefits

AABY: Aam Aadmi Bima Yojana: Application, Claim Procedure, Benefits

Team AckoSept 11, 2023

India is the second-most populous country of the world. It has a workforce of people that belong to different income strata. India is also deemed as a developing country. This implies a large number of people belong to low-income groups. To help fight the grave issue of poverty, the Indian Government has introduced various schemes for the citizens. One such scheme that is created to provide financial help in the time of need is The Aam Admi Bima Yojana. The literal translation of the name of this scheme is “Common Man’s Insurance Scheme.” It is made for people who keep moving the economical wheel of the country.

AABY - Aam Aadmi Bima Yojana



What Is Aam Aadmi Bima Yojana (AABY)?

The Aam Admi Bima Yojana was launched on 2nd October 2007. It is a social security scheme that is targeted toward the low-income families of India. This scheme benefits those who are usually not on a payroll, for example, fishermen, auto drivers, cobblers, etc. Due to low income, they may not think of saving money to face a grave contingency like death or disability. The Aam Aadmi Bima Yojana (AABY) provides them with monetary aid to face such unfortunate situations.

What Is Covered Under Aam Aadmi Bima Yojana?

The Aam Aadmi Yojana, provides coverage to all the eligible members when an unfortunate event like death or disability occurs. Here is the coverage of this insurance plan:

  1. Death due to natural causes: A death certificate of the deceased will be required at the time of claim.

  2. Death due to an accident: A medical certificate stating the cause of death as an accident will be required while claiming.

  3. Partial Disability or Permanent Total Disability: A medical certificate issued by a government medical practitioner stating the nature of disability will be required at the time of claim.

Here is a table listing coverage and sum assured

Coverage Benefit
Death from natural causes Rs.30,000/-
Accidental death Rs.75,000/-
Partial disability Rs.37,500/-
Permanent total disability Rs.75,000/-
Scholarship Rs.100/- per month per child

What is Not Covered?

Through this insurance plan, the government wishes to provide monetary help to those who are in need due to unfortunate events like death or disability. Considering this, the plan has certain situations that are not covered. Here is the list of exclusions of AABY:

  1. Cost of hospitalization

  2. Death or disability due to mental disorders

  3. Suicide

  4. Death or disability due to a war-like situation in the country

  5. Taking part in dangerous and adventurous sports

  6. Taking part in illegal activities

  7. Loss of life or disability due to substance abuse

Features of Aam Aadmi Bima Yojana:

Aam Admi Bima Yojana provides social security to people belonging to low-income families. Considering this, the plan has following features:

1. Affordable:

The premium of the Aam Aadmi Bima Yojana is very low. This makes the plan affordable and one does not have to think about arranging money for paying the premiums of this plan. Moreover, half of the premium amount is borne by the government.

2. Technologically Advanced Insurance:

Technology has helped the government to provide better services to the general public. AABY is one such example. All members’ data is digitized and monitored with the help of a web-based system that allows quick exchange of information when required. This is helpful at the time of claim settlement.

3. Prompt Assistance:

Queries of members can be easily solved by getting in touch with the nearest Life Insurance Corporation (LIC) branch. A person can get in touch with a contact person via call or email as well.

Benefits of Aam Aadmi Bima Yojana:

The AABY provides various benefits to the members of the plan. Here is a list:

1. Coverage For Death From Natural Causes:

The entry age for Aam Aadmi Bima Yojana is set between 18 and 59. If a member of this plan suffers death due to natural causes, LIC will settle a death claim for Rs.30,000.

2. Coverage For Disability:

Any type of disability suffered by a family member comes as a huge shock for the family members. This shock is magnified if the person suffering from disability was the sole breadwinner of the family. With the help of AABY, the family can use a helping hand in terms of finances. The disability claim under this plan is rupees 37500/- for permanent partial disability and rupees 75000/- for permanent total disability because of an accident.

3. Coverage For Accidental Death:

Accidents are highly unpredictable and can result in grave consequences. Thus, the Aam Aadmi Bima Yojana provides coverage for accidental death. Under this coverage an amount of Rs. 75000/- is paid to the nominee of the plan.

4. Additional Benefit:

The Aam Aadmi Bima Yojana does not only provide death and disability benefits but also ensures that at least two children in the family continue to receive education without a break. It offers a free scholarship of Rs. 100/- each month on a half-yearly basis to eligible children studying between 9th and 12th standard.

Occupations/Vocations Covered Under Aam Aadmi Bima Yojana (AABY):

The scheme covers an array of occupations that helps in the identification of the eligible population. The nature of the following occupations is low income and the people occupied can benefit from the AABY.

Anganwadi teachersFirecrackers’ workersManufacture of paper productsRural poorTransport drivers association
AgriculturistsFishermenManufacture of wood productsSafai karamcharisScheme for the urban poorTransport karamcharis
Auto drivers or rickshaw pullersFood stuffs like sugar or khandsariMineral products like earthen toys manufactureSafai karamcharisUnorganized workers covered under the Rashtriya Swasthya Bima Yojana
Beedi workersForest workersOverseas Indian workersScheme for the urban poorWomen associated with self-help groups
Brick kiln workersHamalsPapad workers who are associated with SEWASericultureWomen of hilly areas
CarpentersHandicraft artisansPhysically handicapped people who are self-employedSheep breedersKotwal
Chemical products like candle manufactureHandloom & Khadi Weavers/Handloom WeaversPlantation workersSalt growersOverseas Indian Workers
CobblersLady tailorsPowerloom workersTendu leaf collectorsUnorganized workers covered under RSBY
Coconut processorsLeather and tannery workersPrimary milk producersTextile
Construction workersManufacture of leather productsPrintingRubber and coal productsToddy tappers

Eligibility Criteria:

Aam Admi Bima Yojana is not available for each and every Indian citizen. An applicant must fulfil certain eligibility criteria to enrol under the scheme. Here is a list for your reference:

  • Entry Age: The entry age of Aam Admi Bima Yojana is between 18 years and 59 years

  • Income

    • The applicant should belong to a Below Poverty Line (BPL) family. 

    • Slightly above poverty line families that are a part of any vocational group defined in the scheme. 

    • A person belonging to a rural landless household.

  • Members covered: One member of the family will be eligible to get coverage. He/she should be the breadwinner of the family.

Also, read: Arogya Sanjeevani Health Insurance

How To Enroll In Aam Aadmi Bima Yojana?

The process of enrolling under Aam Aadmi Bima Yojana is different from buying a regular insurance plan. Since this is a national scheme, the applicant needs to visit the Nodal agency that is appointed to carry out the enrollment process. A Nodal agency can be any institutional arrangement appointed by the central or state governments, or Union Territory of India. These include an appointed NGO as well.

It is necessary to mention the nominee while enrolling under this scheme. This is important for filing claims. The family member may not receive the benefit of the plan if there is not a clear mention of the nominee of the policy.

Documents Required To Apply To Aam Aadmi Bima Yojana:

The specific list of documents that are required for enrollment can be sought from the Nodal agency. Here is a list you would require:

  1. Application form

  2. Identity proof

  3. Address Proof

  4. Nominee application form

  5. Income certificate

How To Download Aam Aadmi Bima Yojana Application Form?

The AABY is a social security scheme launched by the Government of India. Since India is a secular country that consists of various states and people speaking different languages, the Aam Aadmi Bima Yojana Form PDF or instructions to apply will be available at the dedicated website of each State Government.

You need to visit the state government’s website and look for details related to how to apply for the Aam Aadmi Bima Yojana. For example, if you live in Maharashtra, you will find details about the plan on the Maharashtra Government Website.

Also, read: Nominee in Health Insurance

Aam Aadmi Bima Yojana Premiums:

The Aam Admi Bima Yojana was created to benefit the people belonging Below Poverty Line of India and those who are just slightly above the poverty line. Considering this, the premium is low in terms of annual payments. An eligible person needs to pay only a 50% premium per year to avail the benefits of the scheme.

The actual premium of this Yojana is 320 rupees. However, the payment is divided between the policyholder and the Government of India. It could be the central government, state government, or the Nodal agency, depending upon the region.

How To Claim Aam Aadmi Bima Yojana?

The claim process of this scheme is easy as compared to any other health insurance product. It provides monetary help in an unfortunate event of death or disability of the policyholder. There could be four situations under which a claim can be made against the policy. Here are the details related to Aam Aadmi Bima Yojana claim process:

Claim Procedure For Death:

In case of death, the nominee will have to apply for a claim with the help of a Death Certificate. The AABY policy should be active at the time of death of a beneficiary. The claim should be filed to the designated Nodal Agency officer. He/she will carry out the verification process. Through the process, he/she will verify that the deceased person was an earning member that belonged to the Below Poverty Line (BPL)/Marginally above BPL family. The occupation of the person will also be looked into.

Documents Required To File A Death Claim:

  • Aam Admi Bima Yojana Death Claim Form 

  • Original and copies of the death certificate

Claim Procedure For Accidental Death:

The claim process of accidental death is similar to the claim process for natural death. However the following documents will be additionally required along with the claim form and death certificate:

  • Copy of FIR

  • Police Conclusion Report /Final Report of Police

  • Police Inquest Report

  • Post Mortem Report

Claim Procedure For Disability:

A disability claim can be made under Aam Aadmi Bima Yojana if a person suffers from total or partial disability. The claim process is simple and the person does not have to become a financial burden for other members of the family.

To file a disability claim one also needs to submit supporting documents that will help prove the disability. Here are the documents that can act as evidence:

  • Documentary evidence of the accident: Police FIR, video recording or photographs of the accident.

  • Medical certificate: It should be issued by a Government Civil Surgeon/qualified Government Orthopaedician stating the details of the accident such as type of disability and loss of limbs of the member covered under the scheme.

Claim Procedure For Scholarships:

Here is how the Scholarships process is carried out:

The Aam Aadmi Bima Yojana Scholarship Online Application Form should be filled by the beneficiary half-yearly and submitted to the appointed Nodal Agency. The eligible students will be selected by the Nodal Agency. This free scholarship add-on pays Rs.100/- per month for one child. The list of students will then be forwarded to the concerned P&GS unit. There will be details of the students such as:

  • 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

The monetary benefit of the Aam Admi Bima Yojana Scholarship will be processed on 1st July and 1st January every year via NEFT to the student’s account. In case any such account is non-existent, other modes of payment will be decided. Note that the scholarship is given to a maximum of two children of the eligible family that are studying between ninth and twelfth standard.

Also, read: Health Insurance for COVID-19

AABY Helpline Number And Address:

The Aam Admi Bima Yojana is offered by LIC. This insurer is responsible for resolving queries related to the scheme. You will find the Aam Admi Bima Yojana Helpline Number on the LIC website.

Locate the nearest LIC branch from the list and use the contact details to get your queries resolved.

Frequently Asked Questions:

What is the nature of partial disability covered under Aam Aadmi Bima Yojana?


Loss of eyes and limbs is covered under partial disability for Aam Aadmi Bima Yojana. A person with a partial disability may be able to carry out daily activities or work to earn a living.

What is the role of the Social Security Fund in relation to AABY?


The premium of AABY is very affordable. This is because half of the premium amount is being subsidized to the members of the scheme from the Social Security Fund. Thus, the Social Security Fund plays an important role in terms of Aam Aadmi Bima Yojana.

Why are the members' NEFT details required at the time of enrollment of AABY?


Members’ NEFT details are required at the time of enrollment because these details will be used in case of a claim. This makes the claim process faster and easier for both – the insurer as well as the insured.


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