The Aam Aadmi Bima Yojana (AABY) is a social security program in India that is run by the government. It gives people who live below the poverty line life and sickness insurance. It started on October 2, 2007, and the Ministry of Finance, Government of India is in charge of it.
The Aam Aadmi Bima Yojana is mostly for people who are poor in both rural and urban areas. This includes landless farm workers, rural artisans, building workers, street vendors, and people who do similar jobs. The goal of the program is to help these people out financially if they lose their ability to work or if the person in their family who makes the most money dies.
Some of the most important parts of the Aam Admi Bima Yojana are:
1.Insurance Coverage: As of September 2021, the plan provides a life insurance cover of INR 30,000 in case the covered person dies of natural causes. A cover of INR 75,000 is given in case of unintentional death or being totally and permanently disabled.
2.Premium and Subsidy: A large part of the scheme’s premium is paid for by the government as a subsidy. The yearly payment for the insurance will be INR 200. The central government will pay INR 100, the state government will pay INR 30, and the insured person will pay the other INR 70.
3.Who can join: Anyone between the ages of 18 and 59 can join. The person who is covered must be the head of the family or a working part of the family, and they must live in a group that the government calls “below the poverty line.”
4.Enrollment and Premium Collection: People can join the Aam Aadmi Bima Yojana through different government offices, self-help groups, lending institutions, and other community-based organizations. Each year, premiums are gathered.
5.Implementation: The Life Insurance Corporation of India (LIC) and other insurance companies chosen by the government carry out the plan.