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How LIC Aam Aadmi Bima Scheme (AABY) Works: Five Things To Know

Unorganised sector workers aged between 18 and 59 years can subscribe to the AABY scheme, which offers a cover of Rs 30,000, according to LIC.

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How LIC Aam Aadmi Bima Scheme (AABY) Works: Five Things To Know

LIC Aam Aadmi Bima scheme premium: 50% of the premium is subsidised from the Social Security Fund


Aam Aadmi Bima Yojana (AABY), administered by Life Insurance Corporation (LIC), is a government-run social security scheme aimed at unorganised sector workers. Unorganised sector workers aged between 18 and 59 years can subscribe to the AABY scheme, which offers a cover of Rs 30,000, according to LIC's website - licindia.in. Eligible applicants can subscribe to the Aam Aadmi Bima scheme at an annual premium of Rs 200 per member, 50 per cent of which is subsidised from the Social Security Fund, according to the LIC website. (Also read: All you need to know about Atal pension scheme)

Here are some key details such as premium and cover about the social security scheme Aam Aadmi Bima (AABY):

LIC Aam Aadmi Bima scheme eligibility

The applicant should be between 18 and 59 years of age. “The member should normally be the head of the family or one earning member of the below poverty line family (BPL) or marginally above the poverty line under identified vocational group/rural landless household,” according to the LIC portal. 

LIC social security scheme AABY premium

A premium of Rs 200 per annum per member is applicable, “out of which 50 per cent will be subsidised from the Social Security Fund”, according to the LIC website. 

“In case of Rural Landless Household (RLH) remaining 50 per cent premium shall be borne by the State Government/ Union Territory and in case of other occupational group the remaining 50 per cent premium shall be borne by the Nodal Agency and/or Member and/or State Government/ Union Territory.”

LIC Aam Aadmi Bima Yojana cover

The AABY scheme offers a life insurance cover of Rs 30,000 in case of natural death, according to the LIC website. This means in the event of natural death of the subscriber, the AABY scheme provides a cover of Rs 30,000. 

Insurance cover for Khadi artisans under AABY:
Event/benefit Cover
Death (natural)30,000.00
Death (accidental)75,000.00
Death (permanent)75,000.00
Death (partial)75,000.00
Educational benefitsScholarship of Rs 300 per quarter for two children studying in standard IX-XII (including industrial training institutes)
(Source: Ministry of Micro, Small & Medium Enterprises)

In case of death caused by an accident, a cover of Rs 75,000 is applicable under the Aam Aadmi Bima scheme, according to a Ministry of Micro, Small & Medium Enterprises statement. In case of partial permanent disability, the scheme provides a cover of Rs. 37,500, and Rs 75,000 in case of total permanent disability, according to the December 2017 statement.

LIC Aam Aadmi Bima scheme add-on benefits

As an add-on benefit, the AABY scheme offers a scholarship of Rs 100 per month per child studying in class 9-12, according to the LIC website. The scholarship is paid on a half-yearly basis to a maximum of two children per subscriber. 

Life Insurance Corporation (LIC) AABY documents required

For proof of age, the applicant can submit one of the following documents, according to LIC: 

  • Ration card
  • Extract from birth register
  • Extract from school certificate
  • Voter's list
  • Identity card issued by reputed employer/government department
  • Aadhaar card


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