Aam Admi Beema Yojana: A Social Security Initiative for the Unorganized Sector

The workers in the unorganized sector constitute about 93% of the total workforce in India. The Government has been implementing some social security measures for certain occupational groups, but the coverage remains minuscule. The majority of workers are still without any social security coverage. Recognizing the need for providing social security to these workers, the Central Government has introduced a Bill in the Parliament.

The Challenge of Social Security in the Unorganized Sector

One of the major insecurities for workers in the unorganized sector is the frequent incidences of illness and the need for medical care and hospitalization for themselves and their family members. Despite the expansion in health facilities, illness remains one of the most prevalent causes of human deprivation in India. It has been clearly recognized that health insurance is one way of providing protection to poor households against the risk of health spending leading to poverty. However, most efforts to provide health insurance in the past have faced difficulties in both design and implementation. The poor are unable or unwilling to take up health insurance because of its cost or lack of perceived benefits. Organizing and administering health insurance, especially in rural areas, is also difficult.

Introduction to Aam Admi Beema Yojana

To address these challenges, the Government introduced the Aam Admi Beema Yojana (AABY). This scheme aims to provide social security to workers in the unorganized sector, particularly targeting those who are below the poverty line (BPL). The AABY offers insurance coverage for natural death, accidental death, and partial/permanent disability.

Key Features of Aam Admi Beema Yojana

  • Eligibility: Workers aged between 18 and 59 years from the unorganized sector are eligible to enroll in the scheme. The family income should be below the poverty line as defined by the Government.
  • Insurance Coverage: The scheme provides a sum assured of Rs. 30,000 for natural death, Rs. 75,000 for death due to accident, Rs. 37,500 for partial permanent disability due to accident, and Rs. 75,000 for total permanent disability due to accident.
  • Premium: The premium under the scheme is Rs. 200 per annum per member. The premium is shared equally between the Central Government and the State Government/Union Territory.
  • Scholarship Benefits: The scheme also includes an add-on benefit of a scholarship of Rs. 100 per month per child for up to two children studying between classes 9 and 12.

Implementation Challenges

Despite the noble intentions behind the Aam Admi Beema Yojana, several implementation challenges need to be addressed:

  • Awareness: Many workers in the unorganized sector are unaware of the scheme and its benefits. Effective dissemination of information is crucial.
  • Enrollment: Simplifying the enrollment process and making it accessible to the target population is essential for the scheme’s success.
  • Claim Settlement: Ensuring a hassle-free and timely claim settlement process is critical to building trust among the beneficiaries.
  • Coordination: Better coordination between the Central Government, State Governments, and implementing agencies is required for smooth operation and monitoring of the scheme.


The Aam Admi Beema Yojana is a significant step towards providing social security to workers in the unorganized sector. By addressing the challenges in implementation and ensuring effective coverage, the scheme has the potential to make a substantial impact on the lives of millions of workers and their families, safeguarding them against financial hardships due to health-related issues.

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