Our Initiative in Micro-Insurance in tie up with LIC under Aam Aadmi Beema Yojana (AABY).

November 20, 2018

Comprehensive financial inclusion incorporates ensuring access to financial services and timely / adequate credit to the weaker section of the society namely rural poor households, etc. on the one hand, and arranging for requisite coverage of their risks again unforeseen circumstances on the other, through micro insurance.  Accordingly, the financial inclusion would have 4 basic components as under:-

  • Access to banking facilities by way of individual saving bank accounts.
  • Providing with credit facility to meet consumption/ productive requirements.
  • Inbuilt insurance cover against the risks of death / accident, etc. 
  • Financial literacy programs for making efficient use of financial resources.


While implementing NRLM we have been emphasising on the fundamental practices of panchsutra involving savings on the one hand and managing amounts raised from loaning on the other. Simultaneously however, it has been all along emphasised that adequate coverage of day to day risks towards life and well being of rural poor should also be kept in view.

With the aforesaid objective, we have taken up with the LIC of India for getting members of our Self Help Groups (SHGs) covered under their scheme of Aam Aadmi Bima Yojana (AABY). A brief of the said scheme was discussed during the last monthly review meeting at our office wherein the LIC officials gave a short powerpoint presentation. We are giving here with the detail of the scheme the operative points of which are as under:-

  1.  The block offices of HSRLM in the respective districts shall work as the nodal offices for compilation of the details of beneficiaries to be covered under this scheme and the premium amount of Rs. 100/- per annum collected in this regard from the respective SHGs. (Different SHGs under the block office shall be advised to send the premium of their SHG members by debiting the savings account of the respective members and such transaction shall appear in their pass book.)
  2.  The block offices shall forward the premium and the list of beneficiaries along with their particulars to the respective district office of HSRLM who shall forward the same to the LIC office at Karnal. (Sr. Branch Manager, P&GS Unit, LIC of India, Jeevan Prakash, 489, Model Town, P.B. no. – 106, Karnal – 132001.)
  3. Our DPM Karnal shall be working as the liaisoning official on behalf of HSRLM for streamlining any administrative issues with the LIC office.
  4. It shall be our endeavour to takeup implementation of aforesaid scheme with immediate effect for which a suitable advisory may be given to all the field functionaries by our DMMUs.
  5. The scheme is to be made operational w.e.f October, 2016. Accordingly, the SHGs shall have to take up the preliminary steps at their level immediately much before the close of September, 2016.


Document Name
Our Initiative in Micro-Insurance in tie up with LIC under Aam Aadmi Beema Yojana (AABY).
Issue date
October 21, 2016