Aam Aadmi Bima Yojana is a Social Security Scheme for rural landless household. It was launched on 2nd October, 2007 . Under this scheme the head of the family or one earning member in the family of such a household is covered. The premium of Rs.200/- per person per annum is shared equally by the Central Government and the State Government, so the insured person has to pay no premium. The member to be covered should be aged between 18 and 59 years.
The benefits under this scheme are as follows:
- On natural death – Rs. 30000/-
- On Death due to accident/on permanent total disability due to accident (loss of 2 eyes or 2 limbs) : Rs. 75000
- On partial permanent disability due to accident (loss of one eye or one limb): Rs. 37500/-
There is a fund called “Aam Aadmi Bima Yojana Premium Fund“, established by the Central Government to pay the contribution by the Central Government. This fund is maintained by LIC. Under the AABY, a free add-on benefit in the form of scholarship to children is also available.
