Salient Features of the scheme
- Aam Admi Bima Yojana (AABY) is a Government of India Social Security Scheme administered through Life Insurance Corporation of India (LIC) that provides Death and Disability cover to persons between the age group of 18 yrs to 59 yrs, under 48 identified vocational/ occupational groups /rural landless households.
- It is a group insurance scheme implemented through a Nodal Agency such as a Central Ministry/ Department; State Government /Union Territory or other institutionalized arrangements/ registered NGO.
- Insurance Cover: The AABY provides insurance cover for a sum of Rs 30,000/- on natural death, Rs. 75,000/- on death due to accident, Rs. 37,500/- for partial permanent disability (loss of one eye or one limb) due to accident and Rs. 75,000/- for total permanent disability (loss of two eyes or two limbs or loss of one eye and one limb) due to accident.
- Add-on-benefit: Scholarship of Rs 100 per month per child is paid on half-yearly basis to a maximum of two children per member, studying in 9th to 12th Standard.
- Premium under the scheme:
- total annual premium under the scheme is Rs. 200/- per beneficiary of which 50% is contributed from the Social Security Fund created by the Central Government and maintained by LIC.
- The balance 50% of the premium is contributed by the State Government / Nodal Agency / Individual.
- The Government of India has set up a Centralized Social Security Fund and Aam Admi Bima Yojana Scholarship Fund which is administered by LIC.
- The due amounts required for settling Premium and Scholarships are debited from these funds.