The Aam Admi Bima Yojana is a social security scheme, launched on the 2nd of October, 2007 by the government of India. Its purpose is to provide financial aid along with social security to the country’s rural population, who otherwise have no access to healthcare and medicine.
The society’s poor and weaker sections rarely avail insurance coverage against deaths and disablements, despite the fact that they are more prone to natural/accidental deaths and disablements. Their families suffer huge financial crises when the sole breadwinner of the family faces such contingencies. It is for such a population, that the government has started the scheme.
The Aam Admi Bima Yojana was merged with the Janashree Bima Yojana later to provide a wider scope of coverage to the individuals.
Here are some of the important features of the scheme:
This scheme is very beneficial as it covers natural calamities such as floods and earthquakes, and has an easy enrolment process. It has coverage for women too, wherein it provides maternity benefits along with coverage for female-headed households.
The parameters which decide if you are covered under the scheme are as follows:
Some of these groups can be named as beedi workers, fishermen, handloom and khadi weavers, cobblers, lady tailors, carpenters, leather and tannery workers, handicraft artisans, forest workers, textile, toddy tappers, slat growers, safai karamcharis, agriculturists, rural poor, anganwadi teachers, overseas Indian workers, sheep breeders, construction workers, plantation workers, coconut processors, etc.
One may note here, that the applicant should not be covered under any other social security schemes such as Employee’s State Insurance Scheme, National Pension Scheme, or any other government-run life insurance scheme.
The following are not covered under this scheme:
The scheme covers the following instances:
A free additional coverage benefit, called Scholarship Benefit, is also provided for up to two children of the insured. The children need to be studying in classes 9 to 12.
Here is the coverage amount for each benefit:
The scheme does not cover disability or death arising out of:
The premium is shared between the state and central governments in a 50:50 ratio. While the total premium is Rs. 200/person/annum, Rs. 100 of it is borne by the central govt., Rs. 30 by the state government, and the remaining Rs, 70 by the beneficiary (the insured individual). ECS or electronic clearance system or some other mode of payment is used to deduct the premium amount from the beneficiary’s bank account.
The eligible individuals need to submit the following documents to get the benefits of the scheme:
The process through which one makes a claim under this scheme depends on the type of contingency. The claims are settled by the LIC through direct NEFT to the beneficiary’s bank account. In case NEFT isn’t available, approval is obtained from a competent authority and the amount is credited. The claim can also be paid through an account payee cheque or any mode chosen by LIC, once the approval has been obtained.
The different types of claims and their respective procedures are as follows:
The documents needed for the death claim include a claim form, the original death certificate and an attested copy of that death certificate.
In case of accidental death, additional documents to be submitted include a copy of FIR (with the local police), post-mortem report, police inquest report and the final report of the police.
In case of disability, the documents required to be submitted include documentary proof of accident and a medical certificate issued by the government civil surgeon/qualified government orthopaedic. The certificate certifies whether it’s permanent total or partial disability.
By March 2015, 32.75 lakh lives had been covered under the Aam Admi Bima Yojana. Claims paid that year amounted to more than Rs. 14.43 lakhs and covered 42000 policies. Coming to the scholarship claims, they were paid to around 6.20 lakh children which amounted to over Rs. 41.81 crores.
The scheme has very low premiums. It is expected to improve the living standards of the rural population/unorganized sector of India by supporting them in times of unforeseen events. The scheme ultimately helps the country’s economy grow.