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?
Contents15
- A1 only
- B2 and 3 only
- C1 and 3 only
- D1, 2 and 3
Show answer
Answer: (C) 1 and 3 only
Statements 1 and 3 are correct.
Statement 2 is WRONG.
Aam Admi Bima Yojana (Common Man's Insurance Scheme), launched in 2007:
Statement 1 (✓): The scheme covers the HEAD of the family OR the earning member of a RURAL LANDLESS HOUSEHOLD. It specifically targets the poorest of the poor — those who don't even own land.
Statement 2 (✗): The correct age group is 18-59 years, NOT 30-65 years. The question deliberately gives the wrong age range to test careful reading. Starting at 30 would exclude young workers, and extending to 65 goes beyond the actual limit of 59.
Statement 3 (✓): The scheme includes a scholarship component — up to TWO CHILDREN of the insured member studying in classes 9 to 12 receive ₹100 per month per child as scholarship. This is a unique feature that adds educational support beyond just insurance.
The scheme provides:
- Death/disability insurance (₹30,000-75,000 coverage).
- Premium: ₹200/year (50% paid by state government, 50% from Social Security Fund).
Note: This scheme was later merged into Pradhan Mantri Jeevan Jyoti Bima Yojana (2015).
Aam Admi Bima Yojana specifically targets rural landless households — the poorest segment who own no land and depend entirely on labor income.
The scheme combines life insurance with education scholarships for children in classes 9-12, making it a comprehensive social security tool rather than just insurance coverage.
Aam Admi Bima Yojana
Indian Economy Aam Admi Bima Yojana rural landless household age group scholarship
Aam Admi Bima Yojana: Coverage, Benefits & Key Features
AABY launched in 2007 for rural landless households - head or earning member eligible
Age eligibility: 18-59 years (not 30-65 as often confused)
Scholarship provision: ₹100/month for up to 2 children in classes 9-12
Premium: ₹200/year (50% state govt + 50% Social Security Fund)
Later merged into Pradhan Mantri Jeevan Jyoti Bima Yojana in 2015
Target Group
Aam Admi Bima Yojana (AABY) was launched in 2007 to provide life insurance coverage to India's most vulnerable population - rural landless households. The scheme specifically targets families who do not own agricultural land and depend on daily wage labor for survival.
Eligibility Criteria
Parameter | Requirement | Key Details |
|---|---|---|
Household Type | Rural landless | Must not own agricultural land |
Member Coverage | Head of family OR earning member | Only one member per household |
Age Range | 18-59 years | Excludes minors and senior citizens |
Employment | Daily wage earner | Primarily manual laborers |
Scheme Benefits
Benefit Type | Coverage Amount | Conditions |
|---|---|---|
Natural Death | ₹30,000 | Death due to natural causes |
Accidental Death | ₹75,000 | Death due to accident |
Partial Disability | ₹37,500 | 50% of accidental death benefit |
Total Permanent Disability | ₹75,000 | Complete inability to work |
Scholarship | ₹100/month per child | Up to 2 children, classes 9-12 |
Question Connection
This 2011 UPSC question tested precise knowledge of AABY features. Statement 2 was the trap - using 30-65 years instead of the correct 18-59 years age range. The scholarship provision (Statement 3) was correctly identified by many candidates, but the age trap caught those who didn't study the scheme details carefully.
Age Trap: UPSC gave 30-65 years - actual eligibility is 18-59 years
Confusion with PMJJBY: Don't mix features of AABY with its successor scheme launched in 2015
Household Coverage: Only ONE member per household eligible, not multiple earning members
Scholarship Limit: Maximum 2 children only, studying in classes 9-12 specifically
Premium Split: ₹200 total - half from state government, half from Social Security Fund (not individual payment)
Pradhan Mantri Jeevan Jyoti Bima Yojana
Indian Economy
PMJJBY: Modern Successor to AABY with Wider Coverage
PMJJBY launched May 2015 as part of Jan Suraksha package
Age eligibility: 18-50 years for entry, coverage till 55 years
Premium: ₹330/year with ₹2 lakh death coverage
Eligibility: Bank account holders (not limited to landless)
Evolution from AABY
PMJJBY replaced AABY in 2015 as part of the Jan Suraksha package. Unlike AABY's focus on rural landless households, PMJJBY covers all bank account holders, making it more inclusive and easier to implement through the banking network.
AABY vs PMJJBY Comparison
Feature | AABY (2007-2015) | PMJJBY (2015-Present) |
|---|---|---|
Target Group | Rural landless households | All bank account holders |
Age Range | 18-59 years | 18-50 years (entry), coverage till 55 |
Premium | ₹200/year | ₹330/year |
Death Benefit | ₹30,000 (natural), ₹75,000 (accidental) | ₹2 lakh (any reason) |
Scholarship | ₹100/month for 2 children | No scholarship component |
Implementation | Through LIC and other insurers | Through banks with insurance partners |
Scheme Confusion: Don't attribute PMJJBY features to AABY or vice versa
Age Difference: PMJJBY has different age criteria - entry up to 50, not 59 like AABY
Premium Amount: PMJJBY is ₹330, not ₹200 like AABY
No Scholarship: PMJJBY doesn't have the scholarship component that AABY had
Jan Suraksha Schemes Package
Indian Economy
Jan Suraksha Package: Three Pillars of Social Security
Three schemes launched together in May 2015 for comprehensive social security
PMJJBY (life insurance), PMSBY (accident insurance), APY (pension)
All schemes require bank account and Aadhaar for enrollment
Combined coverage for death, disability, and old-age security
Comprehensive Social Security
The Jan Suraksha package represents the government's attempt to provide universal social security through the banking system. All three schemes work together to cover life's major risks - premature death, accidents, and old-age poverty.
Jan Suraksha Schemes Overview
Scheme | Coverage Type | Premium/Contribution | Benefit Amount | Age Limit |
|---|---|---|---|---|
PMJJBY | Life Insurance | ₹330/year | ₹2 lakh | 18-50 (entry) |
PMSBY | Accident Insurance | ₹12/year | ₹2 lakh (death), ₹1 lakh (disability) | 18-70 |
APY | Pension | ₹42-1,454/month | ₹1,000-5,000/month pension | 18-40 (entry) |
Jan Suraksha Architecture
# Jan Suraksha Package
## PMJJBY
- Life Insurance
- ₹2 lakh coverage
- Any cause death
- Bank account mandatory
## PMSBY
- Accident Insurance
- ₹2L death, ₹1L disability
- Cheapest premium ₹12
- Age up to 70
## APY
- Guaranteed Pension
- ₹1K-5K monthly
- Government co-contribution
- NPS architectureEvolution of Social Security Schemes
Indian Economy
From Targeted to Universal: Social Security Evolution in India
Pre-2015: Targeted schemes for specific groups (AABY for landless, etc.)
Post-2015: Universal schemes through banking system (Jan Suraksha)
Shift from paper-based to digital enrollment and claims
Integration with JAM trinity (Jan Dhan-Aadhaar-Mobile)
Paradigm Shift
India's social security approach evolved from targeted interventions (like AABY for specific vulnerable groups) to universal schemes accessible to anyone with a bank account. This shift leveraged the financial inclusion drive and digital infrastructure to achieve wider coverage.
Old vs New Approach
Aspect | Old Model (Pre-2015) | New Model (Post-2015) |
|---|---|---|
Targeting | Specific vulnerable groups | Universal (bank account holders) |
Implementation | Multiple agencies, complex processes | Banking network, simplified |
Documentation | Extensive paperwork, verification | Aadhaar-based, minimal docs |
Premium Collection | Cash payments, agents | Auto-debit from bank accounts |
Claims Process | Manual, time-consuming | Digital, faster settlement |
Coverage Tracking | Difficult to monitor | Real-time database tracking |
Timeline Confusion: Don't mix features of pre-2015 schemes with Jan Suraksha schemes
Implementation Agency: Old schemes through LIC/insurers, new ones through banks
Target Group: AABY was landless-specific, PMJJBY is universal for account holders