UPSC Prelims 2011 Q30: Indian Economy – Human Development, Poverty & Employment Schemes
With reference to "Aam Aadmi 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?
- (a) 1 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (c) 1 and 3 only
Explanation
Aam Aadmi Bima Yojana: checking the three statements
Aam Aadmi Bima Yojana (AABY) is a social security scheme for rural landless households.
| Statement | Verdict | Reason |
|---|---|---|
| 1. Insured member must be head or an earning member of a rural landless household | Correct | This is exactly the eligibility rule for AABY |
| 2. Insured member must be aged 30 to 65 | Incorrect | The actual age band is 18 to 59 years, not 30 to 65 |
| 3. Free scholarship for up to two children, studying in classes 9-12 | Correct | AABY includes a scholarship benefit of Rs. 100/month per child for up to two children in classes 9-12 |
AABY at a glance:
| Point | Detail |
|---|---|
| Target group | Rural landless household heads/earning members |
| Age band | 18-59 years |
| Add-on benefit | Scholarship for two children, classes 9-12 |
Answer: (c) 1 and 3 only.
Why each option is right or wrong
- (a) Incorrect. Statement 3 (the scholarship benefit) is also correct, so '1 only' is incomplete.
- (b) Incorrect. Statement 2 is wrong (age band is 18-59, not 30-65); statement 1 is correct, so this combination is wrong.
- (c) CORRECT. Statements 1 and 3 both describe real features of AABY; statement 2's age range is wrong.
- (d) Incorrect. Statement 2's age band (30-65) is false, so 'all three' cannot be right.
Key point
AABY: for rural landless households (head/earning member), age 18-59 (NOT 30-65), with a scholarship benefit for up to two children in classes 9-12.
Remember
Aam Aadmi Bima Yojana: rural landless heads/earners, age 18-59, scholarship for two children (classes 9-12).
Common mistakes
- Misremembering the age band as 30-65 instead of the real 18-59.
- Forgetting AABY includes a scholarship add-on, not just insurance.
- Assuming all listed statements about a scheme are automatically true.
Exam tip
AABY = rural landless + 18-59 + scholarship for 2 children. Any option with a different age range is the trap.
Sources
- Ministry of Labour and Employment — Aam Aadmi Bima Yojana guidelines
- LIC — AABY scheme document