State PCS

Edit Template
Edit Template

Aam Admi Bima Yojana

Aam Admi Bima Yojana

Aam Admi Bima Yojana, launched under the Ministry of Finance, aims to offer a safety net to certain groups by providing insurance coverage against natural and accidental deaths and disabilities. Starting on 2nd October 2007, this scheme is geared towards enhancing social security across India. Under the AABY Scheme, individuals from marginalized backgrounds can find reassurance knowing they have financial protection in times of need. The Life Insurance Corporation of India (LIC) serves as the main facilitator of this initiative, ensuring that those who need it most have access to support and assistance.

Objectives for Aam Admi Bima Yojana

  • To extend the coverage of social security in India.
  • To provide benefits to BPL families.
  • To provide insurance coverage against both death and disability.
  • To put more money supply into the economy.

Features for Aam Admi Bima Yojana

  • The Ministry of Finance has launched a scheme that merged with the Janashree Bima Yojana, extending its reach to eligible individuals.
  • This scheme provides coverage for natural death, accidental death, permanent or partial disability resulting from an accident, and permanent total disability due to an accident.
  • It extends coverage to members of 48 identified groups.
  • The scheme offers a fixed coverage amount, contingent on the type of loss suffered.
  • We settle claims by making a lump-sum payment.
  • A nodal agency oversees the implementation of the scheme, which could be a State Government, a Department of a Central Ministry, Union Territory, or a registered NGO.
  • Presently, the Life Insurance Corporation of India (LIC) is the sole insurance company offering this scheme.


  • Each family can only select one member for coverage under the scheme.
  • Coverage is permitted for either the primary earner in the family or the head of the household, as determined by the family.
  • Beneficiaries must be aged between 18 and 59 years.
  • Eligibility extends to individuals from families classified as Below Poverty Line (BPL), those from families above the poverty line who are part of identified vocational groups, or those from rural communities.
  • A total of 48 vocational groups have been identified for coverage under the scheme, encompassing members of those groups.


Age Proof

  • Ration Card
  • Extract from Birth Register
  • Extract from School Certificate
  • Voter’s List
  • Identity card issued by reputed employer/Government Department
  • Unique Identification Card (Aadhar Card)


  • Initially, the scheme will charge a premium of Rs. 200 per year per member, providing a cover of Rs. 30,000.
  • Half of this premium amount will be subsidized from the Social Security Fund.
  • For Rural Landless Households (RLH), the state government or union territory will bear the remaining 50% of the premium.
  • For other occupational groups, the remaining 50% of the premium will be covered by the Nodal Agency, member, and/or state government or union territory.

Natural Death

  • 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.

    Accidental Death/Disability benefits

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

    • On death, due to accident 75,000/-
    • Permanent Total Disability, due to accident 75,000/-
      Loss of 2 eyes or 2 limbs OR Loss of one eye & one limb, in an accident
    • Loss of one eye or one limb, in an accident 37,500/-

    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.

      Read Also: Pradhan Mantri Fasal Bima Yojana (PMFBY)

      Demo Class/Enquiries

      blog form

      More Links
      What's New
      IAS NEXT is a topmost Coaching Institute offering guidance for Civil & Judicial services like UPSC, State PCS, PCS-J exams since more than 10 years.
      Contact Us
      Social Icon

      Copyright ©  C S NEXT EDUCATION. All Rights Reserved