Aam Aadmi Bima Yojana is a Social Security Scheme which had been initiated as well as administered by the Indian Government for mostly the rural landless households. The Ministry of Finance, under the Government of India, made an approval for the merger of Social Security Schemes viz., Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY). The merged scheme was hence renamed “Aam Aadmi Bima Yojana” and has come into effect from January 1, 2013. It was launched as recently as October 2, 2007. This scheme provides coverage to the head of the family or one earning member in the family. The premium of Rs.200/- per person per annum is shared equally by the Central Government and the State Government, so as to ensure that the insured person has to pay no premium. The member to be covered should be aged between 18 and 59 years.
The reason of Aam Aadmi Bima Yojana
This particular scheme was launched as late as October 2007. This means that the requirement for such a scheme existed in the late 2000s. It is essential to understand what the basic requirement of this particular scheme is in the Indian economy. With changing the topography of the Indian economy and the middle class and above being able to pull them along with changing times, people of rural India, who form the majority are falling back due to the lack of aid. This particular scheme intends to aid people at such a time. Aam Aadmi Bima Yojana is intended for social security and financial aid to the people of rural India. This not only includes people below the poverty line but also people living in areas which do not have access to urban facilities such as big hospitals, or even a pharmacy for that matter.
The benefits under Aam Aadmi Bima Yojana scheme are as follows:
- The Death Benefit Of this scheme is given to the surviving nominees or family of the policyholder on the event of a natural death is Rs. 30,000/-.
- In the case of partial permanent disability due to the accident (loss of one eye or one limb), the amount given to the nominees or family members of the owner of the policy is Rs. 37500/
- Scholarship benefits: Scholarship is a Free Add-on benefit provided to a maximum of two children of the beneficiary who are studying between 9th to 12th Standard @ Rs.100/= per month for each child, which is payable at a half-yearly basis – July 1 and on January 1, every year.
- In case the death has occurred due to accident/on permanent total disability due to the accident (loss of 2 eyes or 2 limbs) the amount given to the nominees or family members of the owner of the policy is Rs. 75,000.
The following are the basic requirements for applying for the Aam Aadmi Bima Yojana:
- The applicant ideally should be the head of the family or one of the earning members of a below poverty line family (BPL) or marginally above the poverty line under identified vocational group/rural landless household.
- Some documentation is also required.
- The applicants should be aged between 18 and 59.