The Ministry of Finance in India gave a nod to club two Social Security Schemes, namely Aam Admi Bima Yojana (AABY) and Janashree Bima Yojana (JBY). The new merged scheme came into effect on 01 January 2013 as “Aam Admi Bima Yojana”.
Aam Admi Bima Yojana covers few occupation and vocations and focuses on helping the below poverty line people lead a financially safe life. This plan mainly aims to offer insurance coverage to common people who fall below poverty line. Some of the occupations covered under this plan are beedi workers, carpenters, textile workers, cobblers, fishermen, and others. For a complete list of occupations covered under this plan, please contact the insurer.
To buy the LIC Aam Aadmi Bima Yojna Plan, one has to meet the eligibility criteria set by the insurer.
|Plan Type||Social Security Scheme|
|Minimum Entry Age||18 years|
|Maximum Entry Age||59 years|
|People covered||Please note that under the Aam Admi Bima Yojana, only the head of the family or one earning member of the family who fall below poverty line or slightly above it under the vocational group or the landless household are eligible to apply for this scheme.|
Sum Assured – It is the amount that is received by the insured person at the time of maturity. In case the insured individual encounters death and the LIC Aam Aadmi Bima Yojna Plan is still active, the sum assured is received by the legal heir or a nominee assigned by the insured.
|Premium||Rs.200 per member. Please note that 50% of the premium will be subsidised from the Social Security Fund and the remaining 50% if its falls under Rural Landless Household will be covered by the State Government. In case of other households, the remaining 50% will be taken care of by the Nodal Agency/Union territory/State Government|
|Death Benefit||In case of the unfortunate death of the insured within the policy term, a death benefit is payable. The death benefit payable will be the sum assured amount chosen by the insured at the inception of the policy. Under this plan, the sum assured is Rs.30,000.|
|Accidental Death or Disability Benefit||
|Scholarship Benefits||As a part of the plan, scholarship benefit is an inbuilt add-on available under Aam Admi Bima Yojana. In the event of unfortunate death of the insured, the insurer will provide scholarship benefit to up to 2 children of the insured who are studying between 9th to 12th class. In this case, the benefit payable will be Rs.100 per month per child which will be payable once in every six months(on 1 July and 1 January of every year)|
Aam Admi Bima Yojana has an inbuilt add-on which is the scholarship benefit. As a part of the plan, scholarship benefit is an inbuilt add-on available under Aam Admi Bima Yojana. In the event of unfortunate death of the insured, the insurer will provide scholarship benefit to up to 2 children of the insured who are studying between 9th to 12th class. In this case, the benefit payable will be Rs.100 per month per child which will be payable once in every six months (on 1 July and 1 January of every year).
Apart from this, currently, the insurer does not offer any add-on plans with LIC Aam Aadmi Bima Yojna Plan. However, they may allow policyholders attach riders to this plan in the future. Please check with your insurer from time to time for the riders available.
There are no exclusions mentioned under this plan. Please contact your insurer for more details.
Other Key Features
Any one of the following documents is required to enroll under this scheme:
|Nodal Agency||Under this plan, Nodal Agencies are present in every place to help people enrol under this scheme. A Nodal Agency is a Central Ministerial Department/State Government / Union Territory of India/any other institutionalized arrangement/any registered NGO appointed to administer the Scheme as per the rules. In the case of “Rural Landless Households”, the nodal agency will mean the State Government/Union Territory appointed to administer the Scheme.|
Under this plan, tax benefits are available under Section 80C and Section 10(10D) of The Income Tax Act, 1961.
You can go ahead and buy the LIC Aam Aadmi Bima Yojna Plan from Life Insurance Corporation of India as it is one of the leading insurance provider with a good reputation. If you or anyone you know fall under the below poverty line, this plan will be ideal for you. For very less premium, people below who fall under the economically backward section of the society can lead a financially safe life.
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