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Aam Aadmi Bima Yojana (AABY scheme) is a government-funded scheme introduced to provide financial assistance to people belonging to the economically weaker section of society. Since these parts of the population face financial hardships, the added pressure of a medical emergency can have a severe repercussion on their financial well-being. 


AABY scheme was therefore introduced in 2007 on the occasion of Gandhi Jayanti by the government to help during medical emergencies by compensating for the expenses incurred due to accidents or some unfortunate incident. 


Read on to learn more about the Aam Aadmi Bima Yojana.

How Does It Work?

Aam Aadmi Bima Yojana policy was launched to help people below and slightly above the poverty line. Unlike any other insurance plan or policy, the AABY scheme involves an annual premium of ₹320. The premium for the Aam Aadmi Bima Yojana policy is comparatively lower than any policy premium. 


Moreover, to further lessen the burden on the policyholder, the premium amount isn’t only payable by the individual. The AABY Scheme premium is split between the government and the policyholder, making it even more affordable for those that need it. 

Reasons To Buy This Plan

The Aam Aadmi Bima Yojana is designed to help the poor, but one has to register under the AABY scheme to avail of its benefits. Some benefits of the Aam Aadmi Bima Yojana are-

  • Helping hand

During emergencies or other unfavourable circumstances, some financial assistance that does not come with an interest rate or repayment module will prove beneficial.


  • Monetary assistance

Aam Aadmi Bima Yojana renders monetary support to the policyholder that can be used for various purposes apart from medical expenses and bills.


  • Duty as a citizen

The Indian Government is launching schemes and policies to uplift the weaker sections of society. It is the duty of these citizens to avail benefits from such schemes and spread awareness among fellow citizens, especially in rural areas.

How To Enrol In AABY? 

Given that Aam Aadmi Bima Yojana is not like other health insurance policies as the process to apply for it is different. However, this difference only makes it simpler for individuals to avail. To enrol yourself in AABY, you will have to go to the Nodal agency appointed by the government to carry out the process. 


The officers at the Nodal agency will give you an application form, which you will have to fill out and submit along with the required documents at the nearest LIC office. For an online process to enrol in Aam Aadmi Bima Yojana, follow these steps:


  • Visit the official state website 

  • Download the application form 

  • Fill out the application form and submit it with the required documents

  • Visit the Nodal agency to complete the enrolment process

Key Features of AABY

The key features and benefits of the Aam Aadmi Bima Yojana policy are -

  • Funded Premium

AABY is a government-sponsored scheme where 50% of the premium comes from the Social Security Fund managed by the Indian government. The remaining 50% is generally paid by the policyholder. However, it can be exempted in special cases.


  • Quick Registration Process

One can opt for Aam Aadmi Bima Yojana online registration, which involves quick approval with minimal documentation. The offline process also offers a hassle-free experience; however, the approval process may take more time.


  • Seamless Claim Process

Claiming funds under the AABY scheme is very easy. The policyholder will have to submit some documents for verification, like beneficiary card, identity proof, etc., and the process will be completed.

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Benefits of Aam Aadmi Bima Yojana (AABY)

Listed below are some top Aam Aadmi Bima Yojana benefits -

  • Natural Death Coverage

If the policyholder dies due to natural reasons like a heart attack or others, the family members receive compensation of ₹30,000 under the AABY scheme.


  • Accidental Death Coverage

If the policyholder incurs an accidental death, the family members receive compensation of ₹75,000 under the AABY scheme.


  • Permanent Disability Coverage

Under the AABY scheme, if a person incurs any permanent accidental disability, they receive compensation of ₹75,000.

  • Temporary or Partial Permanent Disability Coverage

Under the AABY scheme, if a person incurs any temporary accidental disability, they receive compensation of ₹37,500


  • Educational Coverage

Aam Aadmi Bima Yojana policy covers secondary and higher secondary fees of the policyholder’s two children. Apart from that, an amount of ₹100, for each child, will be provided to them annually for stationary expenses.

Inclusions and Exclusions under Aam Aadmi Bima Yojana

The scheme has a set of inclusions and exclusions under which you either will or will not qualify for compensation. Knowing the inclusions and exclusions can help you stay prepared. 


Here’s a look at the list of inclusions and exclusions of the Aam Aadmi Bima Yojana:




Natural death of the policyholder

Hospitalisation costs and expenses

Accidental death of the insured

Death/ disability resulting due to war 

Temporary or permanent disability resulting from an accident

Mental illnesses, Self-harm, suicide, substance abuse, participation in life-threatening actions

Eligibility Criteria

Unlike other health insurance plans, not everyone can avail of the Aam Aadmi Bima Yojana. To enrol in this scheme, you will have to meet the following criteria:


  • Be between the age of 18-59

  • Be a member of the household that 


    • Falls BPL (Below Poverty Line)

    • Is above the poverty line but part of a vocational group defined under the scheme

    • Is landless in rural areas


Keep in mind that the scheme covers only one member, who is the breadwinner of the family.

Claim Process

An individual can claim compensation under the AABY scheme fairly easily. Once the claim is approved and comes under process, the amount will be transferred into the policyholder or nominee’s account via cheque, NEFT, etc., by LIC. There are two different claim processes for the Aam Aadmi Bima Yojana policy. These are:

In Case of Death and Disability

The health insurance claim process is the same for both; natural or accidental death cover and permanent or temporary disability cover. Follow these steps:


  • Fill out the Aam Aadmi Bima Yojana claim form

  • Attach mandatory documents and submit them to the concerned officer at the Nodal Agency


    • In case of death - original death certificate, photographs, BPL card etc 

    • In case of disability - FIR report, medical certificate, accident investigation report, etc.

  • After the documents and information are verified by the concerned officer at Nodal Agency, the claim form will be approved.

  • The funds will be disbursed after the approval.


An important thing to ensure here is that you start the claim process during the policy period only, i.e. before your policy expires.

In Case of Educational Support

To claim scholarships for educational support, individuals will have to follow these simple steps: 


  • The eligible applicant will have to fill out the scholarship form twice a year, specifying details like name, school, policy number, etc.

  • Attach mandatory documents like identity proof, Aam Aadmi Bima Yojana policy papers, etc., and submit them to the concerned officer at the Nodal Agency.

  • After the documents and information are verified by the concerned officer at Nodal Agency, the application form will be processed for fund disbursal.

  • The funds for scholarships are disbursed twice a year on 1st January and 1st July by LIC via chosen transfer mode into the bank account.

Documents Required for Aam Aadmi Bima Yojana

The documentation required to enrol in the AABY scheme is minimal and simple. Along with an accurately filled application form, you will have to submit the following documents:


  • Nominee application form

  • ID proof

  • Income proof

  • Address proof

How to Download the AABY Application Form

The application form for Aam Aadmi Bima Yojana is available on the State Government’s website. You can visit the official website of the state you reside in and find the application form for AABY. 


Download the application form, instructions, and other terms and conditions to begin your enrolment process. Once you have downloaded the form, fill it out and submit the form with the required documents at the nearest office. 

FAQs about Aam Aadmi Bima Yojana

The government of India has directed the Life Insurance Corporation of India to manage the operations of the AABY scheme. The nearest LIC office to your location is the Nodal Agency office.

The documents required for AABY scheme registration are as follows-

  • Photographs

  • Application form

  • ID Proof

  • Income Proof

  • Address Proof

Yes, you can opt for Aam Aadmi Bima Yojana online registration, which involves quick approval with minimal documentation.

The annual premium of Aam Aadmi Bima Yojana is ₹320. However, the policyholder is liable to pay only 50% of the premium, and the rest is paid by the government.

As the scheme is offered by LIC, the helpline number differs for each state. To know the one you should call, check out the LIC helpline nearest to you.


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