Aam Aadmi Bima Yojana

About Aam Aadmi Bima Yojana

• Aam Aadmi Bima Yojana is a pure term government-backed insurance plan
• It is a group plan that is initiated through a nodal agency
• It is a plan initiated by Indian Government and administered through LIC
• One-time premium of Rs 200 is paid in equal contribution by Central and State government on behalf of the insured

How Does Aam Aadmi Bima Yojana Work?

An individual, especially from rural landless areas, between the ages of 18 to 59 years can enrol himself for Aam Aadmi Bima Yojana through a Nodal Agency.  In this scheme, the individual does not receive any maturity benefit since it’s a death cover plan.

Depending on the cause of the individual’s death or his disability condition, the benefit paid is:

• On death due to natural causes, the nominee receives a lump sum of Rs 30,000
• On death due to accident, the nominee receives a lump sum of Rs 75,000
• Partial disability (loss of one arm or one leg or one eye) occurred due to accident, the nominee receives Rs 37,500
• Permanent disability (loss of any two limbs or both eyes or one limb and an eye) occurred due to accident, individual gets Rs 75,000

An additional scholarship benefit for the insured’s two children is provided under this scheme. Scholarship of Rs 100 per month for each child studying in 9^th to 12^th standard is paid half-yearly.

All claims, including scholarships, are made through the nodal agency.

Who Should Buy the Aam Aadmi Bima Yojana plan?

• An individual living in rural areas without any land in their name
• A labour-class worker or equivalent
• An individual whose basic income is below the poverty line
• An individual whose age is between 18-59 years