Articles 1192 views January 9, 2020

Aam Aadmi Bima Yojana (AABY)

The Aam Aadmi Bima Yojana (AABY) is a very effective health insurance scheme introduced to offer medical cover to the poorest people of the country. The AABY is mainly applicable to those who live below the poverty line. The people living marginally above the poverty line can benefit from this scheme as well. Apart from offering a health insurance cover, the Aam Aadmi Bima Yojana (AABY) also offers death and disability benefits. If also has scholarship benefits for meritorious students. Let us learn more about this very useful government health scheme in the article below:

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Features and benefits of the Aam Aadmi Bima Yojana (AABY)

Take a look at a detailed explanation of the features of the AABY to understand how it works:

1. Health insurance cover

The Aam Aadmi Bima Yojana (AABY) was introduced to offer health insurance to the poorest people of India. Health insurance is not affordable for most people living under the poverty line. However, as we all know, health insurance is tremendously important. This is why with the introduction of the AABY in 2013, lots of people now enjoy the cushion of health insurance with ease.

2. Inexpensive

The AABY is available at a nominal cost of Rs 200 per year. The government pays half of it, so the insured only need to pay a sum of Rs 100 a year. A health insurance cover of Rs 3000 is available against this premium, making it very inexpensive and something that everyone can afford with ease. The regular health insurance policies, as we all know, are very expensive and absolutely out of reach for the people living under the poverty line. This is why the cost factor is an important feature of the AABY, as it ensures everyone gets sufficient health insurance even if they do not have the financial capabilities for the same.

3. Easy enrollment process

People who live in poor economic conditions and those who are largely uneducated often find it difficult to understand the procedures needed to get enrolled in various schemes. They also find the documentation work complicated. As a result, they stay away from these facilities that would otherwise help them. Taking cognizance of this fact, the government has deliberately kept the enrollment procedure very simple. The person only needs to show an ID proof and he will get enrolled in the program.

4. Death and disability benefit

The yojana also offers a life cover to the scheme holders. This is very important as in the BPL families, many times, there is only one breadwinner. And if he or she dies in an accident or due to some illness, the family members struggle tremendously to make ends meet. The scheme offers a death benefit of Rs 75,000 if the primary person insured in the family dies. In case of a permanent disability, a similar amount of Rs 75,000 is offered. In case of a partial disability, a sum of Rs 37,500 is paid out.

5. Scholarships available

Education is very crucial and for many, it is the only passport available to come out of the BPL range. The government encourages the Aam Aadmi Bima Yojana (AABY) holders to educate their children by offering scholarships to kids of such families. A sum of Rs 100 is paid to students to study in Grades 9 to 12. This helps to pay for their educational costs.

6. Simple claim process

The claim process for the AABY is pretty straightforward. This is again because a complicated claim process throws off the people and confuses them. So the process to make a claim has been kept as simple as possible. They just need to produce the AABY card and the claim will automatically be settled.

7. Role of nodal agencies

The government has appointed certain nodal agencies to ensure smooth working of the Aam Aadmi Bima Yojana (AABY). The nodal agencies are the Central Ministerial Department or the State Government or the Union Territory of the country. Then, authorised NGOs who have been working in the field can also become the nodal agencies through which this scheme can be availed. The persons looking to get registered under the AABY need to contact the nodal agencies and then complete the formalities to ensure they have the health insurance cover they are entitled to.

These are the main ways in which the AABY has been designed to help the poorest of the poor.

Conclusion

As you can clearly see from the points mentioned above, the Aam Aadmi Bima Yojana (AABY) is a very handy and effective health insurance scheme indeed. It facilitates the poor people of the country who can otherwise not get health insurance. It also offers other benefits such as scholarships and life covers. The government has worked well to provide these covers to the people who need it the most.

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