Tuesday, November 26, 2019

Aam Admi Beema Yojana


Aam Admi Beema Yojana

  • Claim up to Rs. 55,000 deduction under section 80D*
  • 10,000+ hospitals for cashless treatment
  • Insurers offer plans with no limit on room rent
Aam Aadmi Bima Yojana is a Social Security Scheme which had been initiated as well as administered by the Indian Government for mostly the rural landless households. It was launched as recently as October 2, 2007. This scheme provides coverage to the head of the family or one earning member in the family. The premium of Rs.200/- per person per annum is shared equally by the Central Government and the State Government, so as to ensure that the insured person has to pay no premium. The member to be covered should be aged between 18 and 59 years. The Ministry of Finance, under the Government of India made an approval for the merger of Social Security Schemes viz., Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY). The merged scheme was hence renamed “Aam Aadmi Bima Yojana” and has come into effect from January 1, 2013.

Why was Aam Aadmi Bima Yojana Launched?

This particular scheme was launched as late as October, 2007. This means that the requirement for such a scheme existed in the late 2000s. It is essential to understand what the basic requirement of this is in the Indian economy. Aam Aadmi Bima Yojana is intended for social security and financial aid to the people of rural India. This not only includes people below the poverty line but also people living in areas which do not have access to urban facilities such as big hospitals, or even a pharmacy for that matter. With changing topography of the Indian economy and the middle class and above being able to pull themselves along with changing times, people of rural India, who form the majority are falling back due to the lack of aid. This particular scheme intends to aid people at such a time.

Benefits of Aam Aadmi Bima Yojana:

The benefits under Aam Aadmi Bima Yojana scheme are as follows:
  1. The Death Benefit Of this scheme is given to the surviving nominees or family of the policyholder on the event of a natural death is Rs. 30,000/-.
  2. In case the death has occurred due to accident/on permanent total disability due to accident (loss of 2 eyes or 2 limbs) the amount given to the nominees or family members of the owner of the policy is Rs. 75,000.
  3. In the case of partial permanent disability due to accident (loss of one eye or one limb) the amount given to the nominees or family members of the owner of the policy is Rs. 37500/-
  4. Scholarship benefits: Scholarship is a Free Add-on benefit provided to a maximum of two children of the beneficiary who are studying between 9th to 12th Standard @ Rs.100/= per month for each child, which is payable at a half yearly basis – July 1 and on January 1, every year.

Eligibility Criteria for Aam Aadmi Bima Yojana:

The following are the basic requirements for applying for the Aam Aadmi Bima Yojana:
  • The applicants should be aged between 18 and 59.
  • The applicant ideally should be the head of the family or one of the earning members of a below poverty line family (BPL) or marginally above the poverty line under identified vocational group/rural landless household.
  • Some documentation is also required.

Documentation Required for Aam Aadmi Bima Yojana Application:

The following are the documentation requirements to apply for this scheme:
  • 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)
  • Aam Aadmi Bima Yojana Premiums:

    The premium that has to be paid by a member is initially charged at Rs.200/- per annum for each member for a basic cover of Rs.30,000/-. Half of this amount is subsidized from the Social Security Fund. In the case of a Rural Landless Household (RLH) the remaining 50 % premium is borne by the State Government/ Union Territory. In the case of other occupational group the remaining 50% premium shall be borne by the Nodal Agency and/or State Government/ or Member and Union Territory.

    Procedure to Claim Aam Aadmi Bima Yojana:

    The death or disability claims which are under this scheme are supposed to be settled by the P&GS Unit of LIC. They make a direct payment to the beneficiaries through NEFT. In the case that there isn't a NEFT facility available, the money for the claim is directly transferred to the bank account of beneficiaries. This would also require prior approval from competent authority, the A/C payee cheque or claim can be paid by any other mode as decided by LIC.

    Death Claim Procedure:

    1. In the event of death of the member during the period of coverage and while the policy is in force, an application has to be made by his/her nominee.
    2. This application should be made along with a Death Certificate for payment of claim amount to the designated official of the Nodal Agency.
    3. The designated official of the particular Nodal Agency has to then verify the claim papers.
    4. The officer will then submit the documentation and application 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.
    5. Nodal Agency has to submit the following with the application:
      1. Claim Form duly completed in all respects
      2. Original death certificate along with a copy duly attested.

    Accident Claim Procedure:

    In case of accident benefit claim additional requirements have to be submitted along with the Death Registration Certificate. This includes:
    1. Copy of FIR
    2. Post Mortem Report
    3. Police Inquest Report
    4. Police Conclusion Report / Final Report of Police.

    Scholarship Claim Procedure:

    The member of Aam Aadmi Bima Yojana whose child is eligible for this scholarship has to fill up an application form every half a year and submit it to the Nodal Agency.
    1. The Nodal Agency will have to identify and then verify the students.
    2. The Nodal Agency official then would submit the list of beneficiary students to the concerned P&GS unit with full details which include:
      1. Name of the student
      2. School’s name
      3. Class
      4. Member’s name
      5. Master policy no.
      6. Membership no.
      7. NEFT details for direct payment.
    3. Each half year, on July 1 and January 1, LIC will credit the scholarship payment to the Account of the beneficiary student, by NEFT or bank account, if the NEFT facility is unavailable.

FAQs for Aam Aadmi Bima Yojana:

  1. Where Can You Apply for The Aam Aadmi Yojana Scheme?

    The individual has to apply at their respective Nodal Agency. A“Nodal Agency” is basically the Central Ministerial Department or State Government or Union Territory of India or any other institutionalized arrangement or any registered NGO appointed to administer the Scheme as per the rules in the applicant’s residential area. In the case of “Rural Landless Households”, which is the case for most applicants the nodal agency would mean the State Government or Union Territory appointed to administer the scheme.
  2. What is the Aam Aadmi Bima Yojana Premium Fund?

    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.
  3. What are the Vocations and occupations Covered Under Aam Aadmi Bima Yojana?

    The following occupations and vocations are covered:lala
    Brick Kiln WorkersTextile
    Beedi WorkersFood Stuffs like Khandsari / Sugar
    CarpentersManufacture of Wood Products
    CobblersManufacture of Paper Products
    FishermenManufacture of Leather Products
    Handicraft ArtisansRubber & Coal Products
    Handloom WeaversChemical Products like candle manufacture
    Handloom & Khadi WeaversMineral products like earthen toys manufacture
    Lady TailorsAgriculturists
    Leather & Tannery WorkersTransport Drivers Association
    Papad Workers attached to ‘SEWA’Transport Karmacharis
    Physically Handicapped Self Employed PersonsRural Poor
    Primary Milk ProducersConstruction Workers
    Rickshaw Pullers / Auto DriversFire Crackers’ Workers
    Safai KaramacharisCoconut Processors
    Salt GrowersAanganwadi Teachers
    Tendu Leaf CollectorsKotwal
    Scheme for the Urban PoorPlantation Workers
    Forest WorkersWomen Associated with Self-Help Groups
    SericultureSheep Breeders
    Toddy TappersOverseas Indian Workers
    Powerloom WorkersRural Landless Households
    Hilly Area WomenUnorganized workers covered under RSBY
  4. How is the Scheme Working Out Currently?

    The last data that was released for Aam Aadmi Yojana on March 2015, has some things that could be highlighted:
    1. The number of the new lives covered for the fiscal year was 3,275,291.
    2. The claims that were paid for the FY 2014-2015 was for over 42,00 policies.
    3. The amount paid out for these claim for Fy 2014-15 was Rs. 14,43,227
    4. The scholarship claims were at 619985 children amounting to Rs. 41,81, 64,800.
    These numbers show that this scheme is working out more for young scholars, more than a life insurance cover for rural.
GST rate of 18% applicable for all financial services effective July 1, 2017.
Disclaimer: Premiums may vary depending upon factors like age, location and prevailing taxes/GST.