Aam Aadmi Bhima Yojana (AABY) Eligibility and Benefits

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Know all about Aam Aadmi Bhima Yojana, eligibility to apply for the scheme and benefits offered under the scheme.

As the name suggests, Aam Aadmi Bhima Yojana (AABY) is designed for the Aam Aadmi or the common man of the nation. The scheme specifically caters to the financial needs of rural people who currently form a large part of Indian society. These lower income classes sometimes live below the poverty line and are therefore unable to save money to meet future contingencies. Programs like AABY offer to help such people take care of their financial needs for themselves and their families.

What is Aam Aadmi Bhima Policy?

As mentioned earlier, the full form of AABY is Aam Aadmi Bhima Yojana, a savings scheme for the common man of Indian society. The Aam Aadmi Bhima Yojana was launched on 2 October 2007 by the Government of India as a social security scheme for the country’s low-income families. This includes drivers, fishermen, cobblers and other daily wage labourers.

Hence, these people suffer the worst during unplanned unfortunate events like accidental disability or death. With the Aam Aadmi Bhima Yojana policy, these low-income individuals and families can benefit greatly.

What is the eligibility criteria for Aam Aadmi Bhima Yojana?

To get the benefits under the social security scheme known as AABY, the following conditions must be fulfilled. Remember that every citizen of India No are eligible to apply for the scheme.

  • A person applying for AABY scheme should be included in the list of BPL or below poverty line families.
  • Landless rural family members are eligible to apply for the scheme benefits.
  • Above persons should be between 18 to 59 years i.e. less than 60 years of age.
  • Only one member per family is eligible for coverage under this scheme. That member should also be the sole bread earner for their family.

How to apply for Aam Aadmi Bhima Yojana?

AABY is a nationwide scheme which means that a person interested in applying for the scheme has to visit the designated nodal agency for the registration process. Nodal agency refers to the organizational arrangement of the Central or State Governments or Union Territory of India.

Note: The application process for AABY is unlike any other insurance plan or scheme.

It is absolutely necessary to mention the name of the nominee during the registration process for the scheme. In case of no nominee name, their family members will not be considered eligible for the scheme benefits while filing the claim.

What documents are required for registration under AABY?

During the application process, you must submit the following documents:

  • Duly filled application form. Aam Aadmi Bhima Yojana Application Form can be easily downloaded from Aam Aadmi Bhima Yojana official website for your respective state.
  • Applicant’s income certificate.
  • Nominee’s Application Form
  • Identity proof for the applicant.
  • Proof of residential address of the applicant.

Benefits of Aam Aadmi Bhima Yojana

Above we have learned how to join this national program. Now let’s look at the key benefits of the program:

  1. Claims can be raised under this scheme for both partial and permanent disability due to accidents. Out of which Rs. 37,500 in case of partial disability and Rs. 75,000 in case of permanent disability.
  2. A minimum of 2 children in a family is given scholarship under AABY scheme. The scholarship benefit ensures that children continue their education at higher levels as well. A free scholarship of Rs. 100 every 6 months for children from class 9th to 12th.
  3. A death benefit of Rs. 30,000 will be given to the family of the beneficiary who dies due to natural causes. In this case, the beneficiary of the scheme should be between 18-59 years of age.
  4. Accidental death benefit under this scheme is Rs. 75,000 per nominee.
  5. Disability caused by accidents is covered under AABY, which provides financial assistance to the sole family of the beneficiary affected by accidental disability.

Industries covered by AABY

As mentioned earlier, not every person in the country is eligible to apply for the AABY scheme. There are only certain professions or occupations that are considered eligible for benefits under this scheme. Here we are sharing a list of various industries or professions that AABY program covers under its domain:

  • Brick kiln workers
  • Safai Karamsaris (cleaners)
  • People working in sericulture industry
  • Salt farmers
  • Handloom and Khadi weavers
  • Those engaged in the manufacture of leather goods
  • Goat breeders
  • Indian workers abroad
  • Transport workers
  • Workers engaged in firecracker industry

Note that all of the above workers are low-income individuals who do not have a fixed salary, but receive very low wages. Therefore, the AABY program covers these individuals and those from low-income households.

Exemptions under AABY Scheme

We have discussed the professions under AABY scheme above. However, there are certain exclusions to be aware of under the scheme. Let’s look at these below:

  • Death or disability caused by war or war-like situation in the country
  • Injury caused by engaging in illegal activities
  • Self-harm by attempted suicide
  • Injury or self-harm due to mental disorder
  • Death or disability due to drug or drug abuse
  • Injury resulting from participation in dangerous or adventurous sports
What’s Included (Additions) What is not covered (exclusions)
Accidental death Accident or injury resulting from participation in dangerous and adventurous sports
Natural death Death due to war-like situation in the country
Partial or permanent total disability Death or disability due to drug/substance abuse

read more: Senior Citizens Savings Scheme in India


Aam Aadmi Bhima Yojana is another in a series of initiatives taken by the central and state governments in India to ensure that every person in every state in India is insured for the future. To know more details about various insurance schemes for the economically weaker sections of the Indian society and government-backed savings and social security schemes in India, visit PayBima Online.

Is this post informative? Browse PayBima blogs Read related interesting posts Medical insurance, Motor vehicle insurance, Bike insurance, Term life insurance And Investment section. You can visit PayBima Buy insurance online.


Aam Aadmi Bhima Yojana Frequently Asked Questions

What is the nature of partial disability under Aam Aadmi Bhima Yojana?

For coverage under partial disability for the scheme, loss of sight and limb is considered. Also, any person who can carry out routine daily activities or earn a living is considered partially disabled.

What is the role of Social Security Fund in relation to AABY?

Almost half of the total premium payable for the scheme is subsidized from the Social Security Fund to the scheme beneficiaries. This makes the premium of the plan more affordable for the common man.

What are the death benefits provided under Aam Aadmi Bhima Yojana?

Under this scheme, the cash death benefit is Rs. 30,000 will be paid to the beneficiary or nominee of the deceased scheme member on his death. Also, in case of death due to accident, the nomination of the member will be Rs. 75,000.



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