A Step Towards Social Security: Aam Admi Bima Yojana (AABY)

Abstract

Aam Admi Bima Yojana (AABY) is one of the major social insurance schemes launched by the Government of India is known for its aim to bring financial security to socially and economically backward communities of India. The scheme has seen many modifications since its launch in the year 2007. Recently the scheme was merged with the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). At this juncture, it is appropriate to review the achievements of AABY. It examines ro le of the scheme in providing financial security in terms of insurance inclusion to the marginalised sections of society. It also attempts to understand the benefits and challenges faced by the converged AABY scheme. The study concludes that state-wise coverage under the scheme is skewed. Convergence of the scheme with PMJJBY may bring the focus back to the marginalised community as envisaged in the mission statement of PMJJBY while retaining the aim of AABY. The scheme will require modification in premium to remain viable in future.