Central government’s Social Security Scheme – Aam Admi Bima Yojana (AABY) administered through Life Insurance Corporation of India (LIC) will provides death and disability cover to persons between the age group of 18 yrs to 59 yrs, under 48 identified vocational, occupational groups or rural landless households.
It is a group insurance scheme that will be implemented through Central Ministry/ Department; State Government /Union Territory or other institutionalised arrangements/ registered NGO. The AABY provides insurance cover for a sum of Rs 30,000 on natural death, Rs 75,000 on death due to an accident, Rs 37,500 for partial permanent disability (loss of one eye or one limb) due to accident and Rs 75,000 for total permanent disability (loss of two eyes or two limbs or loss of one eye and one limb) due to the accident. The scheme also provides an add-on benefit, wherein Scholarship of Rs 100 per month per child is paid on a half-yearly basis to a maximum of two children per member, studying in ninth to 12th Standard.
The total annual premium under the scheme is Rs. 200 per beneficiary of which 50 per cent is contributed from the Social Security Fund created by the Central Government and maintained by LIC. The balance 50 per cent of the premium is contributed by the State Government / Nodal Agency / Individual, as the case may be.
The Government has set up a Centralised Social Security Fund and Aam Admi Bima Yojana Scholarship Fund. The same is being administered by LIC. There is no State/UT-wise allocation of these funds. The due amounts required for settling Premium and Scholarships are debited from these funds.