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As the name suggests, the Aam Aadmi Bima Yojana (AABY) has been specifically designed for the Aam Aadmi or common man of the nation. This means that the scheme particularly caters to the financial needs of the rural population which currently forms a large section of Indian society. This low-income class sometimes lives below the poverty line and is therefore unable to save any money to meet any future contingencies. Schemes like AABY come forward to help such individuals take care of the financial requirements of themselves and their families.
As mentioned earlier, AABY’s full form is Aam Aadmi Bima Yojana, a savings scheme for the common man of Indian society. The Aam Aadmi Bima Yojana was launched on 2 October, 2007 by the Indian government as a social security scheme for the low-income households of the country. This includes drivers, fishermen, cobblers, and other such daily-wage workers who do not have a fixed monthly income and are therefore unable to save any money for the future.
As such, these people also tend to be the worst affected in case of unplanned unfortunate events such as accidental disability or death. With the Aam Aadmi Bima Yojana policy, these low-income individuals and households can be greatly benefited.
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In order to avail the benefits under the Social Security Scheme called AABY, the following criteria must be satisfied. Note that every citizen of India is not eligible to apply for the scheme.
AABY is a nation-wide scheme, meaning the person interested to apply for the scheme is required to visit an appointed Nodal agency for the enrollment process. A Nodal agency refers to an institutional arrangement by the Central or State Governments or the Union Territory of India.
Note: The application process for AABY is not the same as any other insurance plan or scheme.
It is absolutely essential to mention the name of the nominee during the enrollment process for the plan. In the absence of the nominee name, their family members would not be considered eligible to avail the plan benefits during claim-filing.
During the application process, you would be required to submit the following documents:
Benefits of Aam Aadmi Bima Yojana
We learned above how to enroll for this national scheme. Now let us look at the top benefits of the plan:
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As mentioned earlier, not every person in the country is eligible to apply for the AABY scheme. There are only certain occupations or vocations that are considered eligible for receiving benefits under this plan. Here we share a list of the various vocations or occupations that the AABY plan covers under its domain:
Note that all of the above workers are low income earning individuals who may not have a fixed salary but earn meager wages which may be quite minimal. Hence, the AABY scheme covers these individuals and people belonging to such low-income family households.
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We discussed the occupations that are covered under the AABY plan above. However, there are certain exclusions under the plan which are worth knowing. Let’s look at these below:
What is Covered (Inclusions) | What is Not Covered (Exclusions) |
Accidental death | Accident or injury due to participation in dangerous and adventure sports |
Natural death | Death due to war-like situation in the country |
Partial or Permanent Total Disability | Death or disability due to drugs/substance abuse |
Read More: Senior Citizens Savings Scheme in India
Summary
The Aam Aadmi Bima Yojana is yet another of the series of initiatives taken by the central and state governments in India to ensure that every person in every state of India is insured for the future. To know more details about the various insurance plans for the economically weaker sections of the Indian society and government-backed savings and social security schemes in India, visit PayBima online.
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For coverage under partial disability for the scheme, loss of vision and limbs is considered. Also, any person who is able to carry out everyday routine activities or earn a living is considered partially disabled. Nearly half of the total premium payable towards the plan is subsidized to the scheme beneficiaries from the Social Security Fund. This makes the premium of the scheme highly affordable to the common man. Under the scheme, a monetary death benefit of Rs. 30,000 is paid to the beneficiary or nominee of the deceased scheme member upon the latter’s death. In addition, in case of death due to an accident, the nominee of the member is offered a benefit of Rs. 75,000. FAQs on Aam Aadmi Bima Yojana
What is the nature of partial disability covered under Aam Aadmi Bima Yojana?
What is the role of the Social Security Fund in relation to AABY?
What are the death benefits offered under the Aam Aadmi Bima Yojana?
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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