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Aam Admi Bima Yojana (AABY) - Benefits

Published on Mar 11, 2019

Aam Admi Bima Yojana (AABY) - Benefits

The workers in the unorganized sector constitute about 93% of the total work force in the country. The Government has been implementing some social security measures for certain occupational groups but the coverage is miniscule. Majority of the workers are still without any social security coverage. Recognizing the need for providing social security to these workers, the Central Government has introduced a Bill in the Parliament.

Ministry of Finance, Government of India has approved the merger of Social Security Schemes viz., Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY).



Upon death of a member, during the period of insurance cover the Sum Assured of Rs.30,000/- under assurance, then in force, shall become payable to the nominee.


The following benefits are provided to members in case of accident, during the period of insurance cover

a) On death, due to accident Rs.75,000/-

b) Permanent Total Disability, due to accident Rs.75,000/-

i. Loss of 2 eyes or 2 limbs OR

ii. Loss of one eye & one limb, in an accident

c) Loss of one eye or one limb, in an accident Rs.37,500/-

iii) Scholarship Benefits

Scholarship as a Free Add-on benefit will be provided to a maximum of two children of the beneficiary studying between 9th to 12th Standard @ Rs.100/= per month for each child payable half yearly – on 1st July and on 1st January, each year.

Claim Procedure :

The death or disability claims under the scheme will be settled by the P&GS Unit of LIC by making direct payment to the beneficiaries through NEFT or where there is no NEFT facility available then in such cases directly to the bank account of beneficiaries with prior approval from Competent authority the A/C payee cheque or claim can be paid by any other mode as decided by LIC.

In the event of death of the member during the period of coverage and while the policy is in force, his/her nominee will have to make an application along with Death Certificate for payment of claim amount to the designated official of the Nodal Agency.

The designated official of the Nodal Agency shall verify the claim papers and submit the same along with the death certificate and a certificate that the deceased member was head /earning member of the family belonging to the BPL/Marginally above BPL family under the eligible occupations under the scheme.
Nodal Agency should submit along with the application, the following requirements:

a) Claim Form duly completed in all respects

b) Original death certificate along with a copy duly attested

In case of accident benefit claim the following additional requirements will have to be submitted along with the Death Registration Certificate:

i) Copy of FIR

ii) Post Mortem Report

iii) Police Inquest Report

iv) Police Conclusion Report / Final Report of Police.

Permanent Total Disability Benefit :

The claimant has to submit documentary evidence of the accident, as also the Medical certificate from a Government Civil Surgeon or qualified Government Orthopaedician certifying permanent total/ partial disability due to accident, stating loss of limb/s of the member covered under the scheme.

Every member shall appoint a nominee to receive the claim amount after his death. Nomination form is a part of the membership application form and it should include particulars of the nominee to receive the claim amount. It should be ensured that this procedure is followed without fail so that there is no difficulty at the time of settlement of death claims. The Nomination form will be kept in the custody of the Panchayat/ Nodal Agency and shall be forwarded to LIC along with the claim papers on the death of the member.

Claim Procedure for Scholarships :

1. The member whose child is eligible for scholarship shall fill up an application form half yearly and submit it to the Nodal Agency. The Nodal Agency will identify the students.

2.The Nodal Agency in turn will submit the list of beneficiary students to the concerned P&GS unit with full details such as name of the student, school's name, class, member's name, master policy no., membership no. and NEFT details for direct payment.

3. Every half year, for 1st July and 1st January, each year LIC will credit the scholarship payment to the Account of the beneficiary student, by NEFT.

4. Any other mode of payment of scholarships as decided by LIC/Government may be applicable in future.

How To Join The Scheme


The Scheme is based on Nodal Agency Model. A Nodel Agency can be Panchayats, NGOs, Self Help Groups or any other Institutionalised arrangements. The Nodal Agency can contact the nearest Pension and Group Scheme office or any LIC Branch office.

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