Aam Aadmi Bima Yojana was launched on Gandhi Jayanti, 2007 by P.Chidambaram who was the Finance Minister back then. This was Social Security providing welfare scheme that targeted at benefiting the households of the lower sections of the society. The scheme covered the primary member of the family or the head of the family. The age of the family member should be between 15 years to 59 years, to be eligible for this scheme.
Who Is Administering The AABY Scheme?
The central head for the administration of the AABY Scheme is appointed by the Central Government. Thus according to feasibility, the administering body is either the Central Government, State Government or a local NGO who has taken up the charge for the welfare of any particular rural location.
What is Aam Aadmi Bima Yojana Premium Fund?
When individuals register for AABY, an account will be started under their name. For all the citizens who have applied for this scheme, a funding account will be set up. This account is known as the “Aam Aadmi Bima Yojana Premium Fund”. The account of every beneficiary will be credited with a premium of INR 200 annually. The payment of this amount will be incurred by the Central Government and the State Government equally.
What is the insurance coverage under AABY?
If an individual is registered for AABY Premium Fund account, the government will provide the insurance coverage as follows:
- On death of the insured individual: INR 30,000
- On untimely death due to an accident or complete disability: INR 75,000
- On partial disability due to an accident: INR 37,500
What is the eligibility criteria for AABY?
The eligibility for Aam Aadmi Bima Yojana is as follows:
- The individual applying for AABY should be a member of a household below the poverty line or marginal with the poverty line as identified by the government.
- The individual must be from a family where no other member has an existing AABY account under their name. This scheme stands only for one earning member of the family or the head of the family.
- The individual must be in the age bracket of 15-59 years.
How to apply for AABY?
The application form for AABY is available both online and offline. Thus interested citizens must apply for it by filling in the required information. This application form has to be submitted to the respective banks and municipality with supporting documents for further processing.
What the documents required to apply for this scheme?
Application for this scheme would mean submitted proof of age to the government. Thus the following documents:
- Ration Card (Proof of Below The Poverty Line)
- Aadhaar Card (account linked to Aadhar)
- Voter Card (Proof for 18 years of age and above)
- Birth Certificate (Age proof)
What are the other benefits of AABY?
Under the AABY Scheme, an additional benefit has been provided by the government to all premium fund account holders. This benefit states that an educational scholarship can be opted for by children of the individual registered for AABY. The scholarship is available for a maximum of 2 children who are studying in grades between 9 to 12. As scholarship, an amount of INR 300 is given to them on a quarterly basis.