Aam Admi Bima Yojana

August 18, 2012

 In a rural landless household, when everyday living is a struggle, it is difficult to face life with a smile. And it becomes even more difficult when the future of your family is uncertain.

AAM ADMI BIMA YOJANA, a prestigious scheme of the Central and State / Union Territory Governments and administered by LIC brings a ray of hope and smile to these households.

The Nodal Agency shall mean the State / Union Territory Government appointed to administer the scheme.
The Nodal Agency shall act for and on behalf of the insured members in all matters relating to the Scheme.


The State / Union Territory Government in consultation with the Panchayats will identify the persons to be covered under the scheme. All the members will be provided with an identity card by LIC with an unique identity number.


The member should be aged between I 8 and 59 years
The member should be the head of the family or one earning member in the family of rural landless household.


  • Ration Card
  • Extract from Birth Certificate
  • Extract from School Certificate.
  • Voters list
  • Identity Card

In case of doubt, a certificate from Primary Health Centre can be accepted as authentic proof of age.


In the event of death of a member prior to the terminal date, the Sum Assured of Rs.30,000/- will become payable to the nominee.
Accident Benefit: In the event of death by accident or Total / Partial Permanent Disability due to accident, the following benefits shall become payable:

a) on death due to accident                                 Rs.75,000/-
b) Permanent total disability due to accident          Rs.75,000/-
c) Loss of one eye or one limb in an accident         Rs.37,500/-

A free add-on scholarship benefit for the children of the members of AABY is provided under the scheme. A scholarship at the rate of Rs. 100/- per month will be given to maximum two children studying between 9th to I2th Standard. This scholarship, however, is payable half yearly – on 1st July and on Ist January, each year.


  • The premium under the scheme shall be Rs.200/- out of which 50% shall be subsidized from the Fund created for this purpose by the Central Government and the remaining 50% shall be contributed by the State Government.
  • The premium shall be payable in yearly mode and no relaxation of mode of payment will be allowed.
  • Experience rating adjustment will be allowed after 3 years based on claim experience, if the group is of 2,000 or more members. Even if the group size is small and the claim experience is adverse, LIC may review the rates.


Claim procedure is simple. The beneficiary will be required to furnish the original death certificate and the identity card issued by LIC to the Nodal Agency who will arrange to forward the same along with the claim form to the nearest P&GS Unit in the cities where P&GS Units are located. In the cities where the P&GS Units are not located, the claim should be submitted to the nearest branch office of LIC. LIC will settle the claim by sending Account Payee cheque directly to the beneficiary or by any other mode of payment as decided by LIC. In case of death by accident, police inquest report, FIR, post mortem report will also be required to be submitted.

In case of disability claim, documentary evidence of the accident as well as medical certificate from a Government Civil Surgeon or qualified Government Orthopaedician certifying permanent total / partial disability should be submitted.
Death/total permanent disability due to accident shall mean death / disability occurring within I80 days of the happening of bodily injury resulting solely and directly from accident caused by violent, external and visible means, independently of any other cause.


  • The Nodal Agency will identify the students. The member whose child is eligible for scholarship shall fill up an application form and submit it to the Nodal Agency. The Nodal Agency in turn will submit the list of beneficiary students to the concerned P&GS Unit with full details such as name of the student, name of the school, class, member’s name, master policy number and membership number.
  • Every half year, LIC will send the Account Payee Cheque in the name of the Nodal Agency along with list of beneficiary students. The Nodal Agency will pass on the scholarship to the eligible students. The Nodal Agency shall submit a utilization certificate before claiming the scholarships for the next half year.
  • Any other mode of payment of scholarship may be decided by LIC/Government.


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