Aam Aadmi Bima Yojana: Features, Coverage & Eligibility

Roughly 93% of India’s employees work in the unorganised sector. Workers belonging to similar occupational groups are prone to accidents and illnesses. In case such a terrible occurrence happens, no financial assurance is available due to the need for health insurance. In October 2007, the Indian government introduced the Aam Aadmi Bima Yojana (AABY) to offer social security to workers in this industry. It covers the handicap and natural or accidental death of members of specific categories.

Aam Aadmi Bima Yojana health insurance plans are amongst the best health insurance in India. Its coverage protects against most mishaps and also provides extensive benefits under the scheme. Here are a few of its key features:-

1. Sponsored premium:

   50% of the premium is paid by the government's Social Security Fund, though the exact amount varies from state to state. Depending on which word-related group a recipient belongs to, the nodal agency, the union government, the state government, or the central government will pay the remaining 50%. Therefore, the government supports the premium of this social security plan.

2. Easy Enrollment:

   No lengthy paperwork or complicated procedures. The registration process is simple and hassle-free. The heirs have to just show identification evidence to be enrolled for AABY.

3. Claim Process:

   Once more, the insurance claim procedure is really easy. To have the claim instantly settled, the policyholder only needs to provide their AABY card.

4. Quick Assistance:

   Policyholders can contact the closest Insurance branch by calling the contact person or sending a dispatch if they have any questions.

The Ministry of Labour & Employment, Government of India, introduced the Aam Aadmi Bima Yojana (AABY), a social security program that is administered by the Life Insurance Corporation of India (LIC).  By providing life and disability insurance, it seeks to provide unorganised workers and pastoral landless households with financial stability.

1. Death due to natural causes:

   The designee is compensated with ₹30,000 in the tragic event that the insured passes away from natural causes.

2. Death due to an accident:

   The designee is entitled to admit ₹ 75,000, if the insured dies due to an accident.

3. Partial disability or permanent total disability:

   - Permanent total disability:  If the insured suffers from a permanent total disability (loss of two eyes or two limbs) due to an accident, they admit ₹ 75,000. 
   - Partial permanent disability: If an accident results in a partially irreversible handicap (loss of one eye or one branch), the insured is compensated with ₹37,500.

4. Scholarship benefits:

   AABY also provides educational backing to the children of the insured. Two children studying between the 9th and 12th standard admit an education of ₹ 100 per month per child, expended half-monthly on 1st July and 1st January.

AABY does not cover the following situations:

• Hospitalization expenses
• Suicide
• Death or disability due to mental disorders
• Participation in adventurous sports
• Participation in illegal activities

1. Age:

Any individual who falls between the ages of 18 and 59 years is eligible.

2. Income:

Only applicants whose family is categorised as below the poverty line (BPL) or marginally above the poverty line.

3. Members:

The applicant should be an earning member or the head of the family. The scheme is primarily targeted at rural landless households and members of identified occupational or vocational groups.

4. Documents:

- Proof of age (e.g., birth certificate, school leaving certificate)
- Proof of income (e.g., BPL card, income certificate)
- Proof of occupation (e.g., certificate from the employer or local authority)
- Identity proof (e.g., PAN Card, Aadhaar card)
- Address proof (e.g., ration card, utility bill)

Take a Quick Look at Some of the Government Health Insurance Schemes in India

The Aam Aadmi Bima Yojana (AABY) is a commendable initiative by the Government of India to provide financial security to the most vulnerable sections of society. By offering life and disability insurance coverage at an affordable premium, AABY ensures that rural landless households and unorganised workers have a safety net in times of need. Additionally, the scholarship benefits for the children of the insured help promote education and overall family welfare. However, it is essential to be aware of the exclusions and eligibility criteria to make the most of this scheme.