In order to fight the grave issue of poverty in India, the Indian Government has introduced various schemes for the citizens to provide financial aid in time of need. One such scheme is the Aam Aadmi Bima Yojana which translates as ”Common Man’s Insurance Scheme” to make the economical wheel of the country keeps moving.
India is the second-most populous country in the world having a workforce of people belonging to different income groups. As a developing country, India has a large number of people belonging to low-income groups. In 2011, the Suresh Tendulkar Committee has defined the poverty line based on food, education, health, electricity, and transport. According to the Tendulkar Committee, a person who spends Rs. 27.2 in rural areas and Rs. 33.3 in urban areas in a day is defined as persons living below the poverty line.
The Aam Aadmi Bima Yojana was launched on 2nd October 2007 as a social security scheme targeting India’s low-income families. The आम आदमी बिमा योजना aims to benefit those who are usually not on a payroll, such as auto drivers, cobblers, fishers, etc. Due to the low income, they might not think of saving money to face grave contingency like death or disability. Therefore, the Aam Aadmi Bima Yojana provides them with monetary aids to meet unfortunate conditions like death or disability.
The Aam Aadmi Bima provides a group insurance cover to individuals belonging to the specified groups and provides insurance coverage against natural and accidental deaths and disablements.
Following are the features of the Aam Aadmi Bima Yojana-
The eligibility parameters for availing coverage under the Aam Aadmi Bima Yojana scheme are as follows-
Following are the identified groups-
The coverage that is excluded from the Aam Aadmi Bima Yojana include death or disability arising out of the following-
Following are the eligibility for applying under the Aam Aadmi Bima Yojana-
Following are the benefits under the Aam Aadmi Bima Yojana-
The premium amount of Aam Aadmi Bima Yojana is Rs. 200, where 50 percent of the premium will be subsidized and paid from the Social Security Fund of the government. In case an individual belongs to the rural landless households, the remaining 50 percent of such premium will be paid by State Government or Union Territory. If such an individual is of any recognized vocational group, the remaining 50 percent of the premium will be paid by the nodal agency or the member of the State Government or Union Territory.
The following documents are submitted to get covered under the Aam Aadmi Bima Yojana-
* A valid proof of age, including the following documents:
The procedure for claiming the Aam Aadmi Bima Yojana depends upon the gravity of the contingency suffered. The Life Insurance Corporation of India settles the claims by a direct NEFT to the beneficiary’s bank account. In case the NEFT facility is unavailable, the money is credited to the bank account after attaining approval from the competent authority. In case approval has been obtained, the claim can be paid through an account payee cheque or any other mode as referred by the Life Insurance Corporation of India.
In case the insured dies during the tenure of coverage, the nominee should claim the Life Insurance Corporation of India (LIC). After filling up the death claim form the nominee should submit the form along with the death certificate of the insured to the designated personnel of the nodal agency. The designated officer after checking and verifying the claim form would submit the death certificate and a certificate stating the eligibility of the insured person.
The documents required for the death claim are as following;
The documents required in case of accidental deaths;
The insured person can claim after submitting the following documents:
After qualifying for the scholarship benefit, the insured must fill in an application form for obtaining the benefit under the Aam Aadmi Bima Yojana. Such form is required to be filled half-yearly and then to the Nodal Agency.
The Nodal Agency will identify the eligible students to receive scholarship benefits and submit the list of such identified students to the Pension & Group Scheme unit of LIC containing the following details-
The Government of India has launched the Aam Aadmi Bima Yojana to provide free or subsidized insurance cover to the rural population and the weaker sections of society. The आम आदमी बिमा योजना is a scheme aimed at the social welfare of the backward classes.
By March 2015, about 32.75 lakh lives were covered under the Aam Aadmi Bima Yojana.
The claims paid in the financial year 2014-15 under 42,000 policies was more than Rs. 14 lakhs. The claims of scholarships were paid about 6.20 lakh children more than Rs. 41.81 crores.
The Aam Aadmi Bima Yojana is expected to become popular among the poor and increase the penetration of insurance in India’s rural areas. Aatmnirbhar Sena is here to assist you in meeting all the needs to avail the benefits of the Aam Aadmi Bima Yojana scheme. In turn, it would increase the standard of living of the rural population and help in the growth of the Indian economy.