New Delhi: Ministry of Finance approved the merger of Social Security Schemes- Aam Admi Bima Yojana (AABY) and Janashree Bima Yojana (JBY) in 2013 and the merged scheme was renamed "Aam Admi Bima Yojana". Under this plan insurance plan, people can get life insurance at a monthly premium of Rs 200. Since 50% premium is borne by the state government/Union Territory, the subscriber has to pay only Rs 100 per month for an insurance cover of Rs 30,000.

This scheme is based on the nodal agency model. A nodal agency can be panchayats, NGOs, self-help groups or any other institutionalised arrangements. The Nodal Agency can contact the nearest pension and group scheme office or any LIC branch office.

Eligibility criteria for the scheme: 

1. The members should be aged between 18 years completed and 59 years nearer birthday.

2. The member should normally be the head of the family or one earning member of the below the poverty line family (BPL) or marginally above the poverty line under identified vocational group/rural landless household.

Age Proof:

a) Ration Card
b) Extract from Birth Register
c) Extract from School Certificate
d) Voter's List
e) Identity card issued by reputed employer/Government Department
f) Unique Identification Card (Aadhar Card)

Benefits of the scheme: 

1. Natural Death: Upon the death of a member, during the period of insurance cover the sum assured of Rs 30,000 under assurance, then in force, shall become payable to the nominee.

2. Accidental death/Disability benefits: The following benefits are provided to members in case of an accident, during the period of insurance cover

a) On death, due to accident Rs 75,000
b) Permanent total disability, due to accident Rs 75,000 (loss of 2 eyes or 2 limbs or loss of one eye & one limb, in an accident)
c) Loss of one eye or one limb, in an accident Rs 37,500

3. Scholarship benefits: Scholarship as a free add-on benefit will be provided to a maximum of two children of the beneficiary studying between 9th to 12th Standard at Rs 100 per month for each child payable half yearly – on 1st July and on 1st January, each year.

Insurance Claim Procedure:

The death or disability claims under the scheme will be settled by the P&GS Unit of LIC by making direct payment to the beneficiaries through NEFT or where there is no NEFT facility available then in such cases directly to the bank account of beneficiaries with prior approval from competent authority the A/C payee cheque or claim can be paid by any other mode as decided by LIC.

In the event of the death of the member during the period of coverage and while the policy is in force, his/her nominee will have to make an application along with Death Certificate for payment of claim amount to the designated official of the Nodal Agency.

The designated official of the Nodal Agency shall verify the claim papers and submit the same along with the death certificate and a certificate that the deceased member was head /earning member of the family belonging to the BPL/Marginally above BPL family under the eligible occupations under the scheme.

Nodal Agency should submit along with the application, the following requirements:

a) Claim Form duly completed in all respects
b) Original death certificate along with a copy duly attested.

In case of accident benefit claim the following additional requirements will have to be submitted along with the Death Registration Certificate:
Copy of FIR
Post Mortem Report
Police Inquest Report
Police Conclusion Report / Final Report of Police.

Permanent Total Disability Claim Procedure:

The claimant has to submit documentary evidence of the accident, as also the medical certificate from a government civil surgeon or qualified government Orthopaedician certifying permanent total/ partial disability due to accident, stating loss of limb/s of the member covered under the scheme.

Scholarships Claim Procedure:

1. The member whose child is eligible for scholarship shall fill up an application form half yearly and submit it to the nodal agency. The nodal agency will identify the students.

2. The nodal agency, in turn, will submit the list of beneficiary students to the concerned P&GS unit with full details such as the name of the student, school's name, class, member's name, master policy no., membership no. and NEFT details for direct payment.

3. Every half year, for 1st July and 1st January, each year LIC will credit the scholarship payment to the Account of the beneficiary student, by NEFT. 

4. Any other mode of payment of scholarships as decided by LIC/government may be applicable in future.

Worth mentioning here is that every member shall appoint a nominee to receive the claim amount after his death. The nomination form is a part of the membership application form and it should include particulars of the nominee to receive the claim amount. It should be ensured that this procedure is followed without fail so that there is no difficulty at the time of settlement of death claims. The nomination form will be kept in the custody of the Panchayat/Nodal Agency and shall be forwarded to LIC along with the claim papers on the death of the member.