Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana

Aam Aadmi Bima Yojana (AABY) launched by the department of Finance services of the central government on 2nd October 2007. Mainly launched for the landless and backward people of India to provide them security by the government. This scheme is mainly launched for the BPL family and also the family who are staying in the areas where the all-one facilities like hospitals and schools are not available so that they can also pull themself forward in the race of the world. There were many facilities that were given in this scheme like life insurance and also accident coverage and scholarships for the children of the insured family.

Eligibility criteria for Aam Admi Bima Yojana

These are the requirements for applying for the Aam Admi Bima Yojana

  1. The person should be of age between 18 to 59 years.
  2. The person should have to be the head of the family or the only member of the family who is earning.
  3. The family should be below poverty line marginally above the poverty line

Benefits of Aam Aadmi Bima Yojana

The death benefit of this is scheme will be given to the nominee or the family of the policyholder on the natural death of a person is Rs. 30,000/-

If the death occurred due to an accident and there is permanent disability such as both Limbs are both eyes lost in this case the nominee will be given the amount of Rs. 75,000/-

In case of partial permanent disability due to an accident such as loss on 1 eye or one limb the amount will be given to the nominee or the family member of the policyholder is rupees 37,000/-
There is also an additional benefit of scholarship for the maximum 2 children of the family who is studying between 9th to 12th standard Rs.100/- per month for each child. It is payable every half-yearly.

KYC Documents required for Aam Aadmi Bima Yojana

  • Ration Card
  • Voters Card
  • Birth Certificate
  • Aadhar Card
  • Any Identity card issued by the government.

Claim procedure of Aam Aadmi Bima Yojana

The death claim and the disability claim which comes under this scheme are to be settled by the unit of LIC. They make direct payment to the beneficiary through NEFT or direct transfer of money to the beneficiary account but this will require the approval of the nodal agency who verified the claim paper and the death or disability.

Death claim procedure

If the person met with the death during the period of coverage while the policy is in force the application should be made by the nominee or the family member.

The application will be along with the death certificate for the payment of the claim amount.

One designated officer of the particular nodal agency will verify the claim paper and the death.

Then the officer will submit the whole document to the office along with the death certificate and a certificate that the decided member was head or the only earning member of the family belongs to BPL or marginally above the BPL.

Then after the agency has to submit the following with the application and the claim form duly completed and the original death certificate with a copy.

Accident claim procedure

In this case, if the accident occurs some additional documents with the death certificate have to be provided that are:

  • FIR copy
  • Postmortem Report
  • Police Conclusion Report

Scholarship claim Procedure

The policyholder of Aam Aadmi Bima Yojana who has children eligible for a scholarship should have to fill up the application form every half-yearly and submit it to the nodal agency the respected agency identifies and verifies the student. The nodal agency officer has to submit the list of the beneficiary students to the LIC unit with full detail that as the name of the student, school’s name, class, member’s name, policy membership number, bank detail for direct payment.

For more details visit:  http://financialservices.gov.in/insurance/gssois/aaby.asp

Jeevan Deep: Micro Insurance

Jeevan Deep: Micro Insurance

LIC has launched yet another micro-insurance policy Jeevan Deep (T-810) for the economically weaker sections.

Jeevan Deep Benefits:

Death Benefit:

  • during the policy term excluding last policy year: Basic Sum Assured along with accrued Guaranteed Additions will be paid to the nominee.
  • during last policy year: Basic Sum Assured with accrued Guaranteed Additions along with Loyalty Addition, if any.

Maturity Benefit:
Payment of the Basic Sum Assured along with accrued guaranteed additions and loyalty additions, if any, shall be payable to the policyholder.

What will be Guaranteed Addition?
Guaranteed Addition of Rs 20/- per Rs.1000/- Basic Sum Assured per year during the term of the

Loyalty Addition:
Loyalty Addition will be given on last policy year, depending on LIC’s profitability.

You may pay monthly, quarterly, half-yearly, and yearly premiums. You may also pay a single premium
instead of regular premiums.

Eligibility Conditions and Restrictions:

  • Minimum age at entry: 18 years (completed)
  • Maximum age at entry: 60 years (nearest birthday)
  • Maximum Maturity Age: 65 years (nearest birthday)
  • Policy Term: 5-15 years
  • Minimum Sum Assured: Rs. 5000/-
  • Maximum Sum Assured: Rs. 30000/- (in multiples of Rs. 1,000/-)
  • Loan: Not allowed under this plan
  • Surrender Value: Surrender option available after 2 years.

Grace Period and Revival: 60 days grace period will be given to pay premiums. If premiums are not paid in the grace period, the policy will lapse. A lapsed policy can be revived by paying premium arrears along with satisfactory reasons.

Example: If 30 years old Mr. Anand buys, Jeevan deep policy for a sum assured Rs.30,000/- with 15 years term, he will have to pay a single premium of Rs.20,425 or Rs.2,116 yearly. On maturity he will receive Rs.30,000 (sum assured) + Rs.9000 (Guaranteed Addition) + Loyalty addition. Total Rs.45,000/- Approx.

Other Micro insurance policies:

  1. Jeevan Madhur
  2. Jeevan Mangal
  3. Jeevan Deep

Update: LIC Jeevan Deep Table No. 810 Has Been Discontinued

Jeevan Mangal – Micro Insurance

LIC’s Jeevan Mangal is a term assurance plan with a return of premiums on maturity. “Jeevan Mangal” – the microinsurance product is customized to cater to the distinct needs of the most vulnerable low-income sections of the Indian population.


Death Benefit:
On death, during the term of the policy, the Sum Assured under the basic plan is payable, provided the policy is kept in force.

Maturity Benefit:
On surviving to the date of maturity, an amount equal to the total amount of premium paid during the term of the contract excluding the accident benefit premium and all extra premium, if any, is payable, provided the policy is kept in force.

Optional Rider:
Accidental Benefit Rider:
On death arising as a result of an accident during the term of the policy, an additional amount, equal to Accident Benefit Rider Sum Assured is payable.

Eligibility Conditions and Restrictions under this Plan:
Minimum age at entry : 18 years (completed)
Maximum age at entry : 60 years (nearest birthday)
Maximum age at maturity : 70 years (nearest birthday)
Term : 10 to 15 years for regular premium.
10 years for single premium.
Minimum Installment Premium :Rs. 15/-
Minimum Sum Assured : Rs. 10,000/-
Maximum Sum Assured : Rs. 50,000/-
(Sum Assured shall be in multiples of Rs. 1,000/-)

Mode of Premium Payment :
You can pay your insurance premiums Yearly, Half Yearly, Quarterly, Monthly including SSS, fortnightly, weekly and Single Premium. (Single premium is allowed for a 10-year term only.)

The Unique Identification Number (UIN) for LIC’s Jeevan Mangal is 512N257V01.

The above is the product summary giving the key features of the plan. This is for illustrative purposes only. This does not represent a contract and for details please refer to your policy document.