LIC’s Aam Admi Bima Yojana is one of the commendable schemes to help below the poverty line citizen claim insurance coverage on the earning members’ death and claims to scholarships for the children in 9th to 12th. This is a Social Security Scheme merging Aam Admi Bima Yojana (AABY) and Janashree Bima Yojana (JBY) with the approval of Ministry of Finance, Government of India. The scheme now is renamed as Aam Admi Bima Yojana (LIC AABY) with the effect from 1.1.2013.
LIC Aam Admi Bima Yojana Features
The age criteria to join LIC Aam Admi Bima Yojana is between 18 years (completed) and nearing 59 years. The member applying to this scheme must be the head of the family or an earning member belonging to below the poverty line family (BPL). The member can be also marginally above the poverty line but must be listed under the vocational group / rural landless household.
The body administering the scheme shall be a Nodal Agency, which means the Central Ministerial Department/State Government / Union Territory of India/any other institutionalized arrangement/any registered NGO. They will administer as per the rules. The “Rural Landless Households” scheme shall be administered by the State Government/Union Territory nodal agency.
The documents for the age proof must be submitted, it may be the Ration card, Birth Certificate, School Certificate, an Identity card by reputed employer/Government Department or the Unique Identification Card namely ’Aadhar Card’. The premium to be paid for the scheme will be Rs.200/- per annum for the coverage of Rs.30,000/- . Out of the 30,000, 50% will be sponsored by the Social Security fund. If the member is from Rural Landless Household, then the State Government / Union Territory will bear the remaining 50% premium and the Nodal Agency and/or Member and/or State Government/ Union Territory, if the member is from any other occupational group.
Death Benefits
Upon the Natural death of the member, during the period of insurance coverage, the sum assured of Rs.30,000/- shall be paid to the nominee under LIC Aam Aadmi scheme. In the case of accidental death or permanent total disability due to the accident, insurance coverage of Rs.75000/- will be done. If there is a loss of an eye and one limb, the amount paid will be 37,500/-
Scholarship Benefits
This scheme also provides scholarships to maximum 2 children of the beneficiary, when they are in between 9th to 12th standard. The amount paid is Rs.100/- per month for each child every 6 months, on 1st of July and 1st of January each year.
Claim Process
There are certain procedures for the claim in LIC Aam Admi Bima Yojana plan on death and disability, and it will be settled by the P&GS Unit of LIC. The payment will be done either through NEFT transfer to the beneficiary or if no NEFT facility then through A/C payee cheque with the approval from Competent Authority or any other mode as decided by LIC.
On the event of the member’s death, the nominee shall claim the payment only during the period of coverage and when the policy is in force. The nominee will produce an application along with the death certificate to the designated official of the Nodal Agency. The designated officer from the Agency will then verify all the documents and certify that the deceased person was the head / earning member of the family who belonged to the BPL / Marginally above BPL under the eligible occupations as said in the scheme. The Nodal agency then shall submit the completed claim form, duly attested original death certificate with additional requirements such as FIR copy, Post Mortem report, Police Inquest Report, and Police Conclusion Report.
The procedure for a claim on Disability due to the accident would require an evidence of the accident and a medical certificate from a Government Civil Surgeon to certify loss of limbs or vision loss.
The Panchayat or the Nodal Agency will keep all the required documents in its custody and hand over the papers for a claim to LIC.
For Scholarship claims, the member shall submit the filled in application form to the Nodal Agency, who shall verify accordingly and submit the list of beneficiaries to the concerned P&GS unit for the payment. The payment shall be through NEFT or through any other mode as decided by LIC.
How to Join LIC Aam Admi Bima Yojana
The Nodal Agency has a model to be followed. The Nodal Agency can be Panchayats, Self Help Groups or any Institutionalized arrangements. The Nodal Agency can be in contact with any LIC Branch offices.
