Community Managed Micro Insurance

Andhra Pradesh

Aam Aadmi Bima Yojana

Objective and purpose

‘Aam Aadmi Bima Yojana’(AABY), Government of India’s Group Insurance scheme implementing in the state of Andhra Pradesh through Department of rural development for the benefit of 38.00 lakh rural landless agricultural laborers from 31st March, 2008 and 17.67 lakhs members are covered with the funds from MGNREGS upto 31.03.2013. Thus a total of 56.67 lakh members are covered under the scheme in the year 2012-13


Under this group insurance scheme, for a premium of Rs.320 per member, is shared by the Government of India and the State Government on 50:50 basis. LIC of India has enhanced the premium from Rs. 200 to Rs. 320 per member from 1st April, 2010 due to high and adverse claim ratio reported for the year 2008-09 and 2009-10 in the State under the scheme.


The Life Insurance Corporation of India (LIC) provides insurance cover of Rs.30,000 for natural death, Rs.75,000 for accidental death, Rs. 37500/- for permanent partial disability and Rs. 75000/- for permanent total disability due to accident. A free add-on scholarship benefit for the children of the members of AABY is provided under the scheme. A scholarship at the rate of Rs. 100/- per month will be given to maximum two children studying between 9th to I2th Standard. This scholarship, however, is payable half yearly - on 1st July and on Ist January, each year.

All the enrolled members details digitized and developed web based monitoring system for providing quick and quality services to the enrolled members in a transparent effective manner.