With reference to "Aam Admi Bima Yojana". Consider the following statements:

1. The member insured under the scheme must be the head of the family or an earning member of the family in a rural landless household.

2. The member insured must be in the age group of 30 to 65 years.

3. There is a provision for free scholarship for up to two children of the insured who are studying between classes 9 and 12.

Which of the statements given above is/are correct?  

The correct answer is 1 and 3 only.

Key Points

• Aam Admi Bima Yojana :
  • The members should be aged between 18 years completed and 59 years nearer birthday. Hence, statement 2 is not correct.
  • 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.
  • 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 @ Rs. 100/= per month for each child payable half-yearly – on 1st July and on 1st January, each year.
  • Ministry of Finance, Government of India has approved the merger of Social Security Schemes viz., Aam Admi Bima Yojana (AABY) and Janashree Bima Yojana (JBY).
  • The merged scheme is renamed “Aam Admi Bima Yojana” and has come into effect from 01.01.2013.
  • “Nodal Agency” shall mean the Central Ministerial Department/State Government / Union Territory of India/any other institutionalized arrangement/any registered NGO appointed to administer the Scheme as per the rules. In the case of “Rural Landless Households”, the nodal agency will mean the State Government/Union Territory appointed to administer the Scheme.
  • The premium to be charged initially under the scheme will be Rs.200/- per annum per member for a cover of Rs.30,000/-, out of which 50% will be subsidized from the Social Security Fund . In case of Rural Landless Household (RLH) remaining 50 % premium shall be borne by the State Government/ Union Territory and in case of other occupational group the remaining 50% premium shall be borne by the Nodal Agency and/or Member and/or State Government/ Union Territory.