Nov 242015
 

Aam Aadmi Bima Yojana (LIC) {GST Effect, Apply And Claim Procedure} 

Life insurance schemes are not new in India. The most popular institute, offering such policies is the Life Insurance Corporation of India (LIC). This time, the institute has joined hands with the central government and introduced a new life coverage policy that has been named LIC Aam Aadmi Bima Yojana or the LIC – AABY. It will provide financial assistance to the needy in case of accident or death.

Name Aam Aadmi Bima Yojana
Launched Date year 2007
Operational Date January, 2013
Supervised By LIC
Official Site https://www.licindia.in/Products/Aam-Aadmi-Bima-Yojana
Helpline Toll free number +91 1123362144

Key features of the scheme

  1. Providing financial security to the needy – The LIC – AABY has been announced and implemented as a social security program. It will provide life coverage to the poor and landless farmers in case of any accident or accident.
  2. Type of scheme – Like most other life insurance or accidental insurance policies, the LIC – AABY falls under the category of Social Security Program.
  3. Low premium amount – The premium policy of the policy has been set at very low levels, so that all poor and needy people can enroll under the social security scheme.
  4. Targeted beneficiaries – The implementation of the social security scheme has been done to provide financial assurance to the people who belong to the backward or poor level. The same benefits will be provided to those farmers who do not have any land of their own.
  5. Establishment of premium fund – The central government has already established an Aam Aadmi Bima Yojana Premium Fund. The central government will deposit its financial contribution into this fund for the payment of claims.
  6. Nodal agencies – Each candidate will have to get the approval of the nodal agencies. These nodal agencies will consist of the state government ministries, union territory authority offices or other such government offices.
  7. Nominees will be benefited – In case the original policy holder dies, the entire coverage amount will be transferred in the name of the nominees or other selected family members.
  8. Scholarship benefit for the children – If the policy holder dies or meet with an accident, then a maximum of two children in the family will stand a chance to acquire a scholarship benefit of Rs. 100 on a monthly basis. The payment of the scholarship grant will be done on a half yearly basis.

Eligibility features of the scheme

  1. BPL candidates – Only those people will be allowed to enroll under the scheme who fall in the category of below poverty level. They must not have a good income on a monthly basis.
  2. Age related criteria – There is also an age requirement that the candidates need to meet. The enrolling candidate must not be less than the age of 18 years and he/she must also not be above the age of 59 years.
  3. Head of the family – The candidate who is interested in getting the policy must be the head of the family. If not this, then the enrolling individual must be the only person in the family who is employed.

How to apply?

  1. Any candidate who is interested in gaining the benefits of the scheme will have to go to the nodal agencies and get the application form.
  2. Then the candidate will have to fill up the application form and then attach the photocopies of the required documents before submitting it.
  3. The application must be submitted at the respective office and the verification will be done by the officers.
  4. Once all verifications have been completed, the papers will be forwarded to the office of LIC and respective government departments for documentation.

Documents required for the scheme

  1. Aadhar card – To be a part of the scheme, the candidate will have to produce the unique identification code. For this, the application form must be attached with the photocopy of the Aadhar Card.
  2. Voter ID card – For meeting the verification requirements, the person will also have to attach a photocopy of the Voter ID card with the application form.
  3. Ration Card – The attachment of a copy of the ration card is also important for assisting the verification procedure.
  4. BPL card – As the scheme has been designed for providing life coverage and insurance benefits for the people who are under the poverty line, the enrolling candidate will have to attach the BPL certificate.
  5. School certificate – Any document that has been provided by the school must also be attached with the application form. It will assist in verifying the age of the person.
  6. Birth certificate – As there is an age related criteria that needs to be fulfilled, the candidate will have to attach a photocopy of the birth certificate.
  7. ID card issued by government – For the purpose of identification, the person can also attach any ID card that has either been granted by the central or state government. The same card, issued by the employer will also be granted valid.
  8. Bank account details – The insurance money will be deposited and transferred to the policy holder or to the nominees via the bank account, the details of the account must also be provided by the candidate.

Aam Aadmi Bima coverage rules

In case of natural death –

If the holder of the policy dies in a natural manner, then the nominee or the members of the family will be given a onetime amount of Rs. 30,000.

In case of accidents –

There are two separate categories of claiming the policy money, if the policy holder meets with an accident. If the accident causes death of the policy holder or brings about permanent damage in both eyes of limbs, then the person or nominees will get an amount of Rs. 75,000.

In case the accident does not cause death but brings about a permanent damage to any one of the two eyes or limbs, then the person will be provided with an amount of Rs. 37,000.

Premium rate

It has already been mentioned that the scheme was designed for the benefit of poor and needy section of the society. Thus, it was necessary that the government made sure that the poor people will be able to pay the monthly premium. If the premium amount was quoted too high, then it will not be possible for the poor to avail the benefits. Thus, it has been announced that the premium amount will be only Rs. 200 on a yearly basis. 50% of the premium will be provided state government or the UT authority, if the policy holder falls under the landless farmer category.

Mode of payment

All the payments will be made via the bank accounts. The government will not provide the policy amount in cash. Thus, the presence of an active bank account will come in handy. Once the claim verification process ends, the money will be transferred in the respective account of the policy holder.

Maturity period

The person will be able to get the insured policy coverage amount when they turn 60 years (in case they do not meet a serious accident or die.)

Nominee

The policy holder will be able to nominate a person as the nominee. This person will be given the coverage money in case of death. If the policy holder has not mentioned any nominee, then the amount will be handed over to any kin.

Claim Process For Aam Aadmi Bima Yojana

  1. Claim in case natural death – If the policy holder dies a natural death, then the members of the family or the nominee will have to fill the claim documents and attach the required documents, along with the death certificate. The application must be submitted to the nodal office and once the approval is made, LIC will transfer the money.
  2. Claims in case of accident or accidental death – In case the policy holder meets with an accident and suffers the damages that have been mentioned in the draft of the scheme, then appropriate medical documents, and police FIR papers need to be attached with the claim form. If the policy holder dies due to the impact of the accident, then the claim papers must be attached with the police conclusion report, FIR report, and postmortem report for getting the insurance money.
  3. Scholarship claims – If the policy holder has children who fall under the scholarship program, then the application form must be filled and submitted every six months. The papers will have to be placed in the nodal office. These scholarship papers will be verified and then it will be forwarded to the office of LIC. It will then be the task of the LIC to transfer the scholarship amount into the bank account of the policy holder.

GST effect on the Yojna

Normal calculation states that the implementation of the GST act by the central government of India will make the premium amount expensive. It means that the policy holders will have to pay more money as the premium. The central government has announced that 18% GST will be applicable on the scheme from the of July, 2017.

Conclusion

The implementation of the scheme has proved to be beneficial for the people, especially those who belong to the poor strata. The central government has contributed about 569.10 Cr towards the Social Security Fund and Scholarship Fund for settling the claims.

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