Micro Insurance Project 1

8/12/2019 Micro Insurance Project 1

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INTERNATIONAL INSTITUTE

OF PROFESSIONAL STUDIES

MAJOR RESEARCH PROJECT ON

MICROINSURANCE: PERCEPTION AND NEED OF LOWINCOME GROUP

(With special reference to Indore)

Guided by: Submitted by:

Dr. Sujata Parwani Neeraj Kumar

Faculty IIPS IM-2K5-3

M!" #MS$ 5yr%


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CERTIICATE

&'i% i% t( certi)y t'at t'e re%earc' *a*er !MICROINS"RANCE# perception and

need of lo$ inco%e &ro'p wa% d(ne wit' %incere e))(rt% and dedicati(n and i%

bein+ %ubmitted by Mr. Neeraj Kumar () M!" #MS$ 5 yr% a% maj(r ,e%earc'

Pr(ject at Internati(nal In%titute () Pr()e%%i(nal Studie%.

Dr. Sujata Parwani

Faculty IIPS D" Ind(re

,e%earc' Guide


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AC+NOW*E,EMENT

I w(uld li/e t( e0*re%% my +ratitude t( all w'( 'a1e %'ared t'eir 1aluable time and

'el*ed me directly (r indirectly in t'e *re*arati(n () t'i% *r(ject.

I am t'an/)ul t( my *r(ject +uide Dr. Sujata Parwani w'( +uided and 'el*ed me

t'r(u+' t'e c(ur%e () t'e de1el(*ment () t'e *r(ject.

I w(uld al%( e0*re%% my %incere t'an/% t( all my Friend% and my %eni(r% )(r t'eir

timely %u**(rt in t'e analy%i% *art () t'i% *r(ject re*(rt.

Neeraj Kumar

IM-2K5-3


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Contents

-. Introd'ction///////////////////...////... 0

Salient )eature% () Micr(in%urance ..

Indu%try Pr()ile......42

Maj(r *layer% in Micr(in%urance..4

I,D" #Micr(in%urance$ ,e+ulati(n% 25......2

Micr(in%urance *r(duct% in India...26

1. *iterat're Re2ie$//////////////////////30

3. O45ecti2e of st'd6////////////./////////78

7. Research Methodolo&6///////////////.////7-

9. ata Anal6sis///////////////////////.73

0. indin& /////////////////////.////.90

:. Concl'sion//////////////////////.//.9;


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INTRO"CTION

India i% enj(yin+ ra*id +r(wt' and bene)it% )r(m a y(un+ *(*ulati(n. It% middle

cla%% i% +r(win+ ra*idly but 6 *ercent () t'e *(*ulati(n i% %till rural ()ten 1ery

*((r and 'andica**ed by *((r 'ealt' and 'ealt' %er1ice% and l(w literacy rate%."lt'(u+' t'e ty*e () ri%/% )aced by t'e *((r %uc' a% t'at () deat' illne%% injury

and accident are n( di))erent )r(m t'(%e )aced by (t'er% t'ey are m(re 1ulnerable

t( %uc' ri%/% becau%e () t'eir ec(n(mic circum%tance. "cc(rdin+ t( 7(rld !an/

%tudy #Peter% et al. 22$ re*(rt% t'at ab(ut (ne-)(urt' () '(%*itali8ed Indian% )all

bel(w t'e *(1erty line a% a re%ult () t'eir %tay in '(%*ital%. &'e %ame %tudy re*(rt%

t'at m(re t'an *ercent () '(%*itali8ed *atient% ta/e l(an% (r %ell a%%et% t( *ay

)(r '(%*itali8ati(n.

7'en a *((r9% )amily9% inc(me +enerat(r die% w'en a c'ild () a *((r )amily i%'(%*itali8ed (r '(me () a *((r )amily i% de%tr(y% by )l((d eart'ua/e (r )ire.

;1ery illne%% e1ery accident (r e1ery natural di%a%ter lead% t( dee*er *(1erty t( a

*((r )amily. &'at9% w'ere micr( in%urance c(me% in.

Micr(in%urance i% t'e *r(tecti(n () l(w inc(me '(u%e'(ld% a+ain%t %*eci)ic

*eril% in e0c'an+e )(r *remium *ayment% *r(*(rti(nate t( t'e li/eli'((d and c(%t

() t'e ri%/ in1(l1ed. It i% %*eci)ically de%i+ned )(r t'e *r(tecti(n () l(w inc(me

*e(*le wit' a))(rdable in%urance *r(duct% t( 'el* t'em c(*e wit' and rec(1er )r(m

c(mm(n ri%/. " /ey %trate+y )(r en'ancin+ ec(n(mic de1el(*ment and alle1iatin+

*(1erty i% t( ma/e )inancial %y%tem% m(re inclu%i1e )(r e0am*le by im*r(1in+

acce%% t( %a1in+% and credit %er1ice% )(r un- and under-%er1ed mar/et%. In *art

P(1erty %tem% )r(m t'e )act t'at l(w-inc(me '(u%e'(ld% and mar/et% d( n(t 'a1e

t'e %ame (**(rtunitie% t( )inance in1e%tment% accumulate ca*ital (r *r(tect a%%et%

#includin+ 'uman a%%et%$. &'e *((r9% 'ea1y reliance (n in)(rmal )inancial %er1ice%

< %uc' a% m(neylender% under-t'e-mattre%% %a1in+% and mutual a%%i%tance

%(cietie% < can be ine))icient and e0*en%i1e and may e1en e0acerbate *(1erty. "n

inclu%i1e )inancial %y%tem ma/e% in%urance a1ailable t( l(w-inc(me *er%(n%.

=(we1er many c(mmercial in%urer% and *(licyma/er% belie1e t'at *r(1idin+in%urance t( t'e *((r i% t'e re%*(n%ibility () t'e %tate. "lt'(u+' many +(1ernment%

'a1e %(cial *r(tecti(n *r(+ramme% t'e tar+etin+ () t'e%e %c'eme% i% ()ten

ine))ecti1e. &'e *((re%t %e+ment% d( n(t alway% bene)it )r(m t'e %ub%idy w'ile

*e(*le w'( can a))(rd in%urance ()ten )ind way% t( acce%% t'e%e bene)it%. In

+eneral +(1ernment% 'a1e made little e))(rt t( %'i)t t'e burden () ri%/-*((lin+ t(


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mar/et-led %c'eme%> and t'e *ri1ate %ect(r #c(mmercial in%urer%$ %eem% t( 'a1e

little incenti1e t( %ee/ (ut t'i% mar/et %e+ment. In *rinci*le micr(-in%urance

w(r/% li/e any ty*ical in%urance bu%ine%%. !ut t'ere are %e1eral t'in+% t'at

di))erentiate it )r(m n(rmal in%urance. Fir%t it i% +r(u* in%urance t'at can c(1er

t'(u%and% () cu%t(mer% under (ne c(ntract. Sec(nd micr(-in%urance reuire% anintermediary between t'e cu%t(mer and t'e in%urance c(m*any. Pre)erably t'i%

intermediary i% a n(n-+(1ernmental (r+ani8ati(n #NG?$ (r micr()inance

in%tituti(n )(r e0am*le a rural ban/ t'at can 'andle t'e w'(le di%tributi(n and

m(%t () t'e admini%trati(n *r(ce%%. &'e )ew di))erence% between traditi(nal

in%urance and micr(in%urance are a% )(ll(w%:

&raditi(nal In%urance Micr(in%urance

@lient% A(w ri%/ en1ir(nment

;%tabli%'ed in%uranceculture

=i+' ri%/ e0*(%ureB

'i+' 1ulnerability 7ea/ in%urance culture

Di%tributi(n

m(del

S(ld by licen%ed

intermediarie% (r by

in%urance c(m*anie%

directly t( wealt'y client%

(r c(m*anie% t'at

under%tand in%urance

S(ld by n(n traditi(nal

intermediarie% t( client%

wit' little e0*erience ()

in%urance

P(licie%

@(m*le0 *(licyd(cument% wit' many

e0clu%i(n%

Sim*le lan+ua+e Few i) any e0clu%i(n

Gr(u* *(licie%

Premium

calculati(n

G((d %tati%tical data

Pricin+ ba%ed (n

Indi1idual ri%/

Aittle 'i%t(rical data

Gr(u* *ricin+

ery *rice %en%iti1e

mar/et

Premium

c(llecti(n

M(nt'lyBuarterlyB%emi (r

annually c(llecti(n

Freuent (r irre+ular

*ayment ada*ted t(1(latile ca%' )l(w ()

client%

?)ten lin/ed wit' (t'er

tran%acti(n #e.+. l(an

re*ayment


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@(ntr(l ()

in%urance ri%/

#ad1er%e

%electi(n

m(ral 'a8ard%)raud%$

Aimited eli+ibility

Si+ni)icant d(cumentati(n

reuired

Screenin+ %uc' a% medical

te%t i% reuired

!r(ad eli+ibility

Aimited but e))ecti1e

c(ntr(l

In%urance ri%/ included

in *remium rat'er t'an

e0clu%i(n

Ain/ed t( (t'er %er1ice

#li/e credit$

@laim%

'andlin+

@(m*licated *r(ce%%

;0ten%i1e 1eri)icati(n

d(cumentati(n

Sim*le and )a%t

*r(cedure () %mall

)irm%

;))icient )raud c(ntr(l

=i%t(rically in India a )ew micr(-in%urance %c'eme% were initiated eit'er by

n(n+(1ernmental (r+ani8ati(n% #NG?$ due t( t'e )elt need in t'e c(mmunitie% in

w'ic' t'e%e (r+ani8ati(n% were in1(l1ed (r by t'e tru%t '(%*ital%. &'e%e %c'eme%

'a1e n(w +at'ered m(mentum *artly due t( t'e de1el(*ment () micr(-)inance

acti1ity and *artly due t( t'e re+ulati(n t'at ma/e% it mandat(ry )(r all )(rmal

in%urance c(m*anie% t( e0tend t'eir acti1itie% t( rural and well-identi)ied %(cial

%ect(r in t'e c(untry #I,D" 2$. "% a re%ult increa%in+ly micr(-)inancein%tituti(n% #MFI%$ and NG?% are ne+(tiatin+ wit' t'e )(r-*r()it in%urer% )(r t'e

*urc'a%e () cu%t(mi8ed +r(u* (r %tandardi8ed indi1idual in%urance %c'eme% )(r t'e

l(w-inc(me *e(*le. "lt'(u+' t'e reac' () %uc' %c'eme% i% %till 1ery limited

anyw'ere between 5 and 4 milli(n indi1idual%.

&'e CNDP re*(rt 'a% analy8ed %i0 /ey i%%ue% *ertinent t( t'e +r(wt' () t'e micr(-

in%urance indu%try in India ca*turin+ t'e c(ncern% () di))erent %ta/e'(lder% a%

indicated bel(w:

#i$ &'ere are %*eci)ic rea%(n% )(r l(w demand )(r in%urance in %*ite () inten%e need.Su**lier% 'a1e t'eir (wn c(ncern% w'ic' 'el* t( e0*lain w'y t'ere 'a1e been %(

little e))(rt% at mar/et de1el(*ment. @(n%euently t'e rural mar/et i%

c'aracteri8ed by limited and ina**r(*riate %er1ice% inadeuate in)(rmati(n and

ca*acity +a*%.


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#ii$ &'ere are c'allen+e% in *r(duct de%i+n w'ic' 'a% re%ulted in a mi%matc'

between need% and %tandard *r(duct% (n ())er. ;))(rt% at *r(duct de1el(*ment B

di1er%i)icati(n 'a1e been limited.

#iii$ Pricin+ includin+ willin+ne%% t( *ay and t'e a1ailability () %ub%idie%

in)luence t'e mar/et. In t'e ab%ence () a 'i%t(rical data ba%e (n claim% *remiumcalculati(n% are ba%ed (n rem(te macr( a++re+ate% and (1ercauti(u% mar+in%.

!uildin+ and %'arin+ claim% 'i%t(rie% can 'el* in ali+nin+ *ricin+ deci%i(n% wit'

actuarial calculati(n% t'ereby reducin+ *rice%.

#i1$ Di))iculty in di%tributi(n i% (ne () t'e m(%t cited rea%(n% )(r ab%ence () rural

in%urance. &'e 'i+' c(%t% () *enetratin+ rural mar/et% c(mbined wit'

underutili8ati(n () a1ailable di%tributi(n c'annel% 'inder t'e +r(wt' () rural

in%urance %er1ice%. &'i% add% t( c(%t% b(t' mana+erial and )inancial. Ai/e

Inclu%i1e credit inclu%i1e in%urance i% e0*ected t( be a l(w tic/etE bu%ine%%reuirin+ 1(lume% )(r 1iability.

#1$ @umber%(me and ina**r(*riate *r(cedure% in'ibit t'e de1el(*ment () t'i%

%ect(r.

#1i$@(ntra%tin+ *er%*ecti1e% () t'e in%ured and t'e in%urer% lead t( l(w

cu%t(mi8ati(n () *r(duct% and l(w demand )(r w'at i% a1ailable.

Salient feat'res of Microins'rance#

4$ USAGE:&'(u+' n( )i+ure% are a1ailable (n t'e e0act %i8e () t'e micr(in%urance

mar/et in India a r(u+' e%timate w(uld *lace it at ar(und 4m indi1idual% (r

a**r(0imately 2 () t'e adult *(*ulati(n. &'e l(w ta/e-u* can be a%cribed t( a

+eneral lac/ () awarene%% () in%urance a% a )inancial *r(duct e1en in t'e 'i+' t(

middle-inc(me mar/et #a )act(r t'at emer+ed %tr(n+ly )r(m t'e )(cu% +r(u*

)indin+%$. In additi(n a lac/ () rural )inancial %er1ice% in)ra%tructure )(r

di%tributi(n *ur*(%e% a% well a% a lac/ () actuarial data in'ibit t'e de1el(*ment ()

t'e micr(in%urance mar/et.

2$PLAYERS:&'(u+' t'e %tate-(wned in%urer% %till 'a1e t'e lar+e%t mar/et %'are

t'ere are n(w a t(tal () 32 licen%ed in%urer%. " )eature t'at %et% India a*art )r(m

(t'er c(untrie% i% t'e )act t'at micr(in%urance i% m(%tly *r(1ided by lar+e

c(r*(rate in%urer%. &'i% i% due t( a cauti(u% re+ulat(ry a**r(ac' < in re%*(n%e t(

t'e )act t'at %mall and c((*erati1e )inancial in%tituti(n% 'a1e n(t *er)(rmed well


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'i%t(rically < t'at limit% t'e *layer% in t'e n(n-ban/ )ield t( lar+e ca* in%tituti(n%.

&'e c((*erati1eBmutual %ect(r t'ere)(re d(e% n(t )eature a% a *r(1ider ()

micr(in%urance t'(u+' c(r*(rate in%urer% u%e it a% a di%tributi(n c'annel. In)(rmal

in%urance i% 1irtually e0clu%i1ely t'e d(main () )(rmal entitie% %uc' a% 'ealt'

in%urance %c'eme% n(t re+i%tered )(r in%urance *ur*(%e% rat'er t'an c(mmunityri%/-*((lin+ +r(u*% and i% e%timated t( (nly c(m*ri%e 2 () t'e mar/et.

3$PRODUCTS:Micr(in%urance in India i% )(r t'e m(%t *art dri1en by c(m*ul%(ry

credit li)e in%urance (n t'e bac/ () micr()inance. Due t( t'e limited reac' () t'e

*ublic 'ealt' %y%tem t'ere i% al%( a 'i+' natural demand )(r 'ealt' in%urance.

Many MFI% t'ere)(re *r(1ide a *ac/a+e () c(m*ul%(ry in%urance c(1er t( t'eir

client% t'at are credit-lin/ed < t'i% include% li)e a%%et a% well a% 'ealt' in%urance.

&'e c(1er i% )(r t'e term () credit #u%ually 4 year$. =ealt' c(1er *r(1ided in %uc'*ac/a+e% i% n(t c(m*re'en%i1e and it c(1er% (nly certain li%ted di%ea%e% )(r w'ic'

'(%*itali8ati(n i% reuired. "ccident c(1er i% a rider (n li)e in%urance and i% a )i0ed

*ay(ut. India i% t'ere)(re )airly uniue in t'at c(m*ul%(ry in%urance c(1er e0tend%

bey(nd li)e c(1er. It i% e%timated t'at (nly 4 () micr(in%urance *(licie% are %(ld

(n a 1(luntary ba%i%. ?) t'e%e u* t( are end(wment *r(duct% rat'er t'an *ure

ri%/ *r(duct% indicatin+ a *re)erence am(n+ t'e l(winc(me *(*ulati(n )(r

)inancial *r(duct% t'at *r(1ide %(me *ay(ut re+ardle%% () w'et'er a ri%/ e1ent 'a%

(ccurred.

$ DISTRIBUTION: Di%tributi(n i% an im*(rtant *art () t'e micr(in%urance

land%ca*e in India. ,e+ulati(n% were i%%ued in 25 t( create a micr(in%urance

a+ent cate+(ry )(r t'e dedicated di%tributi(n () micr(in%urance. @urrently %uc'

a+ent% '(we1er (nly di%tribute ab(ut 2 () all micr(in%urance. In%tead

di%tributi(n mainly ta/e% *lace t'r(u+' MFI% w'( eit'er d( n(t uali)y a%

micr(in%urance a+ent% under t'e re+ulati(n% (r w'( )ind t'e re+ulati(n% t((

re%tricti1e a% *artner% (r a+ent% () )(rmal in%urer%. we can di%tin+ui%' )(ur

in%tituti(nal m(del% )(r *r(1idin+ micr(in%urance w'ic' 'el* u% t( under%tand '(w

c(r*(rate in%urer% +(1ernment b(die% a% well a% (t'er in%tituti(n% %uc' a%

micr()inance in%tituti(n% #MFI%$ can *lay a r(le.

i$Partner Agent Model: @(mmercial (r *ublic in%urer% t(+et'er wit' MFI%

(r n(n+(1ernmental (r+ani8ati(n% #NG?%$ c(llab(rati1ely de1el(* t'e *r(duct.


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&'e in%urer ab%(rb% t'e ri%/ and t'e MFIBNG? mar/et% t'e *r(duct t'r(u+' it%

e%tabli%'ed di%tributi(n netw(r/. &'i% l(wer% t'e c(%t () di%tributi(n and t'u%

*r(m(te% a))(rdability. &'i% m(del () c(llab(rati(n 'a% bec(me t'e d(minant

a**r(ac' t( micr(in%urance in India and 'a% enc(ura+ed many micr()inance

in%tituti(n% t( %witc' )r(m a )ull-%er1ice m(del t( t'e *artner-a+ent m(del.;0am*le% () t'i% %c'eme are "IDMI% Afat !"o a% well a% S;7" a

micr(in%urance *i(neer w'( ())er% it% li)e 'ealt' and a%%et c(1era+e in

*artner%'i* wit' 1ari(u% in%urer%.

ii$ Co""#n!t$ %ased Model: " +r(u* () *e(*le (r l(cal c(mmunitie% MFI%

NG?% andB (r c((*erati1e% de1el(* and di%tribute t'eir (wn *r(duct mana+e t'e

ri%/ *((l and ab%(rb t'e ri%/. &'e Swayam/ru%'i H(ut' @'aritable ?r+ani%ati(n

#H@?$ in "nd'ra Prade%' i% an e0am*le () a c(mmunity-ba%ed m(del. It i%

*rimarily a %a1in+% and credit a%%(ciati(n wit' added in%urance )eature%. &'ec((*erati1e% 4 member% *ay a yearly *remium () ,%. 4 int( a *((l mana+ed

by t'e c((*erati1e and recei1e c(1er )(r deat' and *r(*erty l(%%. &'e li)e in%urance

bene)it i% ,%. 45 )(r a natural deat' and ,%. 3 in t'e e1ent () an

accidental deat'.

iii$In t&e !n'&o#se or f#ll'ser(!)e "odel: " MFI (r NG? run% it% (wn in%urance

%c'eme )(r it% client% and any *r()it (r l(%% i% ab%(rbed by t'e MFI. &'e %y%tem i%

n(t 1ery c(mm(n anym(re but it %till e0i%t% in %(me (r+ani8ati(n% %uc' a%

SP"ND"N" l(cated in Guntur "nd'ra Prade%'. &'i% %c'eme %tarted in urban

area% and t'en m(1ed t( rural (ne% and 'a% e0*anded en(rm(u%ly in recent year%.

i1$Pro(!der "odel:!an/% and (t'er *r(1ider% () micr()inance can directly ())er

(r reuire in%urance c(ntract%. &'e%e are u%ually c(u*led wit' credit )(r e0am*le

t( in%ure a+ain%t de)ault ri%/. &'i% m(del i% u%ed widely in t'e +eneral in%urance

mar/et but 'i+' tran%acti(n c(%t% and l(w ability t( *ay *remium% in'ibit it%

e0ten%i1e u%e in t'e )ield () di%a%ter in%urance )(r t'e *((r.


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Micr(in%urance deli1ery m(del%

?ne () t'e +reate%t c'allen+e )(r micr(in%urance i% t'e actual deli1ery t( client%.

Met'(d% and m(del% )(r d(in+ %( 1ary de*endin+ (n t'e (r+ani8ati(n in%tituti(nand *r(1ider in1(l1ed. "% Dubby Ma'alan(bi% %tate% (ne mu%t be t'(r(u+' and

care)ul w'en ma/in+ *(licie% (t'erwi%e micr(in%urance c(uld d( m(re 'arm t'an

+((d. &ric/y c'allen+e% In +eneral t'ere are )(ur main met'(d% )(r ())erin+

micr(in%uranceJ2 t'e *artner-a+ent m(del t'e *r(1ider-dri1en m(del t'e )ull-

%er1ice m(del and t'e c(mmunity-ba%ed m(del. ;ac' () t'e%e m(del% 'a% t'eir

(wn ad1anta+e% and di%ad1anta+e%.

Partner a+ent m(del: " *artner%'i* i% )(rmed between t'e micr(in%urance#*artner a% MFI$ %c'eme and an a+ent #in%urance c(m*anie%$ and in

%(me ca%e% a t'ird-*arty 'ealt'care *r(1ider. &'e micr(in%urance %c'eme i%

re%*(n%ible )(r t'e deli1ery and mar/etin+ () *r(duct% t( t'e client% w'ile t'e

a+ent retain% all re%*(n%ibility )(r de%i+n and de1el(*ment. In t'i% m(del

micr(in%urance %c'eme% bene)it )r(m limited ri%/ but are al%( di%ad1anta+ed in

t'eir limited c(ntr(l. Micr( In%urance @entre i% an e0am*le () an (r+ani8ati(n

u%in+ t'i% m(del.

Full %er1ice m(del: &'e micr(in%urance %c'eme i% in c'ar+e () e1eryt'in+> b(t'

t'e de%i+n and deli1ery () *r(duct% t( t'e client% w(r/in+ wit' e0ternal 'ealt'care

*r(1ider% t( *r(1ide t'e %er1ice%. &'i% m(del 'a% t'e ad1anta+e () ())erin+

micr(in%urance %c'eme% )ull c(ntr(l yet t'e di%ad1anta+e () 'i+'er ri%/%.

Pr(1ider-dri1en m(del: &'e 'ealt'care *r(1ider i% t'e micr(in%urance %c'eme

and %imilar t( t'e )ull-%er1ice m(del i% re%*(n%ible )(r all (*erati(n% deli1eryde%i+n and %er1ice. &'ere i% an ad1anta+e (nce m(re in t'e am(unt () c(ntr(l

retained yet di%ad1anta+e in t'e limitati(n% (n *r(duct% and %er1ice%.


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3

@(mmunity-ba%edBmutual m(del: &'e *(licy'(lder% (r client% are in c'ar+e

mana+in+ and (wnin+ t'e (*erati(n% and w(r/in+ wit' e0ternal 'ealt'care

*r(1ider% t( ())er %er1ice%. &'i% m(del i% ad1anta+e(u% )(r it% ability t( de%i+n and

mar/et *r(duct% m(re ea%ily and e))ecti1ely yet i% di%ad1anta+ed by it% %mall %i8e

and %c(*e () (*erati(n%.


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3

Micr(in%urance %c'eme

" micr(in%urance %c'eme i% a %c'eme t'at u%e% am(n+ (t'er% an in%urance

mec'ani%m w'(%e bene)iciarie% are #at lea%t in *art$ *e(*le e0cluded )r(m )(rmal%(cial *r(tecti(n %c'eme% *articularly in)(rmal ec(n(my w(r/er% and t'eir

)amilie%. &'e %c'eme di))er% )r(m (t'er% created t( *r(1ide le+al %(cial *r(tecti(n

t( )(rmal ec(n(my w(r/er%. Member%'i* i% n(t c(m*ul%(ry #but can be

aut(matic$ and member% *ay at lea%t in *art t'e nece%%ary c(ntributi(n% in (rder

t( c(1er bene)it%.

&'e e0*re%%i(n Lmicr(in%urance %c'emeL de%i+nate% eit'er t'e in%tituti(n t'at

*r(1ide% in%urance #e.+. a 'ealt' mutual bene)it a%%(ciati(n$ (r t'e %et ()in%tituti(n% #in t'e ca%e () lin/a+e%$ t'at *r(1ide in%urance (r t'e in%urance %er1ice

it%el) *r(1ided by an in%tituti(n t'at al%( 'andle% (t'er acti1itie% #e.+. a micr(-

)inance in%tituti(n$.

&'e u%e () t'e mec'ani%m () in%urance im*lie%:

Pre*ayment and re%(urce-*((lin+: t'e re+ular *re*ayment () c(ntributi(n%#be)(re t'e in%ured ri%/% (ccur$ t'at are *((led t(+et'er.

,i%/-%'arin+: t'e *((led c(ntributi(n% are u%ed t( *ay a )inancial c(m*en%ati(n

t( t'(%e w'( are a))ected by *redetermined ri%/% and t'(%e w'( are n(t e0*(%ed t(

t'e%e ri%/% d( n(t +et t'eir c(ntributi(n% bac/.

Guarantee () c(1era+e: a )inancial c(m*en%ati(n )(r a number () ri%/% in line

wit' a *re-de)ined bene)it% *ac/a+e.

Micr(in%urance %c'eme% may c(1er 1ari(u% ri%/% #'ealt' li)e etc.$> t'e m(%t

)reuent micr(in%urance *r(duct% are:

Ai)e micr(in%urance #and retirement %a1in+% *lan%$


15/67

3

=ealt' micr(in%urance #'(%*itali%ati(n *rimary 'ealt' care maternity etc.$

Di%ability micr(in%urance

Pr(*erty micr(in%urance < a%%et% li1e%t(c/ '(u%in+

@r(* micr(in%urance

MAJOR P*A>ERS IN MICROINS"RANCE

*ife Ins'rance Corporation of India (*IC)

Ai)e In%urance @(r*(rati(n () India #AI@$ wa% e%tabli%'ed (n 4 Se*tember 45 t(

%*read t'e me%%a+e () li)e in%urance in t'e c(untry and m(bili%e *e(*le9% %a1in+%)(r nati(n-buildin+ acti1itie%. AI@ wit' it% central ())ice in Mumbai and %e1en

8(nal ())ice% at Mumbai @alcutta Del'i @'ennai =yderabad Kan*ur and

!'(*al (*erate% t'r(u+' 4 di1i%i(nal ())ice% in im*(rtant citie% and 2

branc' ())ice%. AI@ 'a% 5.5 la/' acti1e a+ent% %*read (1er t'e c(untry.


16/67

3

&'e @(r*(rati(n al%( tran%act% bu%ine%% abr(ad and 'a% ())ice% in Fiji Mauritiu%

and Cnited Kin+d(m. AI@ i% a%%(ciated wit' j(int 1enture% abr(ad in t'e )ield ()

in%urance namely Ken-India "%%urance @(m*any Aimited Nair(bi> Cnited

?riental "%%urance @(m*any Aimited Kuala Aum*ur> and Ai)e In%urance

@(r*(rati(n #Internati(nal$ ;.@. !a'rain. It 'a% al%( entered int( an a+reementwit' t'e Sun Ai)e #CK$ )(r mar/etin+ unit lin/ed li)e in%urance and *en%i(n

*(licie% in C.K.

In 45- AI@ 'ad a t(tal inc(me )r(m *remium and in1e%tment% () 5 !illi(n

w'ile GI@ rec(rded a net *remium () 4.3 !illi(n. Durin+ t'e la%t 45 year% AI@%

inc(me +rew at a 'ealt'y a1era+e () 4 *er cent a% a+ain%t t'e indu%try% .6 *er

cent +r(wt' in t'e re%t () "%ia #3. *er cent in ;ur(*e 4. *er cent in t'e CS$.

AI@ 'a% e1en *r(1ided in%urance c(1er t( )i1e milli(n *e(*le li1in+ bel(w t'e

*(1erty line wit' 5 *er cent %ub%idy in t'e *remium rate%. AI@% claim%

%ettlement rati( at 5 *er cent and GI@% at 6 *er cent are 'i+'er t'an t'at ()

+l(bal a1era+e () *er cent. @(m*(unded annual +r(wt' rate )(r Ai)e in%urance

bu%ine%% 'a% been 4.22 *er cent *er annum.

&'e intr(ducti(n () *ri1ate *layer% in t'e indu%try 'a% added t( t'e c(l(r% in t'e

dull indu%try. &'e initiati1e% ta/en by t'e *ri1ate *layer% are 1ery c(m*etiti1e and

'a1e +i1en immen%e c(m*etiti(n t( t'e (n time m(n(*(ly () t'e mar/et AI@.

Since t'e ad1ent () t'e *ri1ate *layer% in t'e mar/et t'e indu%try 'a% %een new and

inn(1ati1e %te*% ta/en by t'e *layer% in t'i% %ect(r. &'e new *layer% 'a1e

im*r(1ed t'e %er1ice uality () t'e in%urance. "% a re%ult AI@ d(wn t'e year% 'a1e%een t'e declinin+ *'a%e in it% career. &'e mar/et %'are wa% di%tributed am(n+ t'e

*ri1ate *layer%. &'(u+' AI@ %till '(ld% t'e 65 () t'e in%urance %ect(r but t'e

u*c(min+ nature% () t'e%e *ri1ate *layer% are en(u+' t( +i1e m(re c(m*etiti(n t(

AI@ in t'e near )uture. AI@ mar/et %'are 'a% decrea%ed )r(m 5 #22-3$ t( 2

# 2-5$.


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3

ICICI Pr'dential *ife Ins'rance Co%pan6 *td.

I@I@I Prudential Ai)e In%urance @(m*any i% a j(int 1enture between I@I@I !an/ a

*remier )inancial *(wer'(u%e and *rudential *lc a leadin+ internati(nal )inancial%er1ice% +r(u* 'eaduartered in t'e Cnited Kin+d(m. I@I@I Prudential wa%

am(n+%t t'e )ir%t *ri1ate %ect(r in%urance c(m*anie% t( be+in (*erati(n% in

December 2 a)ter recei1in+ a**r(1al )r(m In%urance ,e+ulat(ry De1el(*ment

"ut'(rity #I,D"$. &'e c(m*any 'a% a netw(r/ () ab(ut 5 ad1i%(r%> a% well

a% 6 banc a%%urance and 45 c(r*(rate a+ent tie-u*%.

?irla S'n *ife Ins'rance Co%pan6 *td.

;%tabli%'ed in 2 !irla Sun Ai)e In%urance @(m*any Aimited #!SAI$ i% a j(int

1enture between t'e "ditya !irla Gr(u* a well /n(wn and tru%ted name +l(bally

am(n+%t Indian c(n+l(merate% and Sun Ai)e Financial Inc leadin+ internati(nal

)inancial %er1ice% (r+ani8ati(n )r(m @anada. &'e l(cal /n(wled+e () t'e "ditya

!irla Gr(u* c(mbined wit' t'e d(main e0*erti%e () Sun Ai)e Financial Inc. ())er%

a )(rmidable *r(tecti(n )(r it% cu%t(mer%9 )uture.

Tata AI, *ife Ins'rance Co%pan6 *td.

&ata "IG Ai)e In%urance @(m*any Atd. L&ata "IG Ai)eL ())er% a br(ad array ()

li)e in%urance *r(duct% t( indi1idual% a%%(ciati(n% and bu%ine%%e% () all %i8e% wit'

a wide 1ariety () additi(nal c(1era+e t( en%ure (ur cu%t(mer% can )ind an in%urance

*r(duct t( meet t'eir need%.

&ata "IG Ai)e i% a j(int 1enture () t'e &ata Gr(u* and "merican Internati(nal

Gr(u* Inc. #"IG$. &'ey (*erate in 44 %tate% wit' a %*eci)ic relati(n%'i*mana+ement team )(r eac' %tate. " dedicated O trained %ale% and mar/etin+ team

mana+e% t'e )r(nt end () t'e Micr( in%urance *r(+ram. ?ur micr( in%urance

di%tributi(n m(del c(llab(rate% wit' NG?9% #N(n-+(1ernmental (r+ani%ati(n%$ and

,ural (r+ani8ati(n% wit' c(mmunity le1el S=G #Sel) =el* Gr(u*$ w(men


18/67

3

ad1i%(r% w'( *r(1ide in%urance ad1i%(ry %er1ice% t( t'e rural cu%t(mer% at t'eir

d((r%te*.

S?I *ife Ins'rance Co%pan6 *i%ited

S!I Ai)e In%urance @(m*any Aimited i% a j(int 1enture between t'e State !an/ ()India and !NP Pariba% "%%urance. S!I Ai)e In%urance i% re+i%tered wit' an

aut'(ri8ed ca*ital () ,% 2 cr(re% and a Paid-u* ca*ital () ,% 4 @r(re%. S!I

(wn% 6 () t'e t(tal ca*ital and !NP Pariba% "%%urance t'e remainin+ 2.

State !an/ () India enj(y% t'e lar+e%t ban/in+ )ranc'i%e in India. "l(n+ wit' it%

"%%(ciate !an/% S!I Gr(u* 'a% t'e unri1alled %tren+t' () (1er 4 branc'e%

acr(%% t'e c(untry ar+uably t'e lar+e%t in t'e w(rld.

S!I Ai)e 'a% a uniue multi-di%tributi(n m(del enc(m*a%%in+ 1ibrant

!anca%%urance ,etail "+ency In%tituti(nal "lliance% and @(r*(rate S(luti(n%di%tributi(n c'annel%. S!I Ai)e e0ten%i1ely le1era+e% t'e S!I Gr(u* a% a *lat)(rm

)(r cr(%%-%ellin+ in%urance *r(duct% al(n+ wit' it% numer(u% ban/in+ *r(duct

*ac/a+e% %uc' a% '(u%in+ l(an% and *er%(nal l(an%. S!I9% acce%% t( (1er 4

milli(n acc(unt% acr(%% t'e c(untry *r(1ide% a 1ibrant ba%e )(r in%urance

*enetrati(n acr(%% e1ery re+i(n and ec(n(mic %trata in t'e c(untry en%urin+ true

)inancial inclu%i(n.

IN, @6s6a *ife Ins'rance Co%pan6 Pri2ate *i%ited

ING y%ya Ai)e In%urance #ING Ai)e$ a *art () t'e ING Gr(u* t'e w(rld9% lar+e%t

)inancial %er1ice% c(r*(rati(n entered t'e *ri1ate li)e in%urance indu%try in India in

Se*tember 24. =eaduartered at !an+al(re ING Ai)e India i% %ta))ed by (1er

em*l(yee% and %er1ice% m(re t'an 4 la/'% cu%t(mer%.

ING Ai)e India i% a j(int 1enture between ING Gr(u* #ING In%urance Internati(nal

!..$ O ;0ide Indu%trie%. ING Ai)e 'a% a *an India netw(r/ and di%tribute% it%

*r(duct% t'r(u+' tw( c'annel% t'e &ied "+ency F(rce and t'e "lternate @'annel.

&'e &ied "+ency )(rce c(m*ri%e% () (1er ING Ai)e "d1i%(r% %*read acr(%%

t'e c(untry. &'e c'annel 'a% branc'e% in 23 citie% and 3 %ale% team% acr(%% t'e

c(untry. &'e "lternate @'annel% bu%ine%% wit'in ING Ai)e i% (ne () t'e )a%te%t

+r(win+ di%tributi(n c'annel%. &'e c(m*any currently 'a% tie u*% wit' (1er 2

c((*erati1e ban/ acr(%% t'e c(untry. &'e "lternate @'annel% di1i%i(n 'a%


19/67

3

!anca%%urance #ING y%ya !an/$ ,e)erral !an/% @(r*(rate "+ent% !r(/er% and

SMIN@;.

Allian ?a5a5 *ife Ins'rance Co%pan6 *td.

!ajaj "llian8 Ai)e In%urance i% a uni(n between "llian8 S; (ne () t'e lar+e%t

In%urance @(m*any and !ajaj Fin%er1. "llian8 S; i% a leadin+ in%urance

c(n+l(merate +l(bally and (ne () t'e lar+e%t a%%et mana+er% in t'e w(rld

mana+in+ a%%et% w(rt' (1er a &rilli(n #?1er IN,. 55 @r(re%$. "llian8 S;

'a% (1er 445 year% () )inancial e0*erience and i% *re%ent in (1er 6 c(untrie%

ar(und t'e w(rld.

Metlife India Ins'rance Co%pan6 P2t. *td.

MetAi)e India In%urance @(m*any Aimited #MetAi)e$ i% an a))iliate () MetAi)e

Inc. and wa% inc(r*(rated a% a j(int 1enture between MetAi)e Internati(nal

=(ldin+% Inc. &'e ammu and Ka%'mir !an/ M. Pall(nji and @(. Pri1ate

Aimited and (t'er *ri1ate in1e%t(r%. MetAi)e i% (ne () t'e )a%te%t +r(win+ li)e

in%urance c(m*anie% in t'e c(untry. It %er1e% it% cu%t(mer% by ())erin+ a ran+e ()

inn(1ati1e *r(duct% t( indi1idual% and +r(u* cu%t(mer% at m(re t'an l(cati(n%

t'r(u+' it% ban/ *artner% and c(m*any-(wned ())ice%. MetAi)e 'a% m(re t'an5 Financial "d1i%(r% w'( 'el* cu%t(mer% ac'ie1e *eace () mind acr(%% t'e

len+t' and breadt' () t'e c(untry.

A2i2a *ife Ins'rance Co%pan6 India *i%ited

"1i1a India i% a j(int 1enture between (ne () t'e c(untry9% (lde%t and lar+e%t+r(u*% Dabur and "1i1a *lc t'e CK% lar+e%t in%urance +r(u* w'(%e a%%(ciati(n

wit' India date% bac/ t( 43. 7it' a %tr(n+ %ale% )(rce () (1er 3 Financial

Plannin+ "d1i%er% #FP"%$ we 'a1e initiated and *i(neered many inn(1ati1e %ale%

a**r(ac'e% includin+ t'e c(nce*t () !anca%%urance and Financial =ealt' @'ec/

%er1ice%. 7e are am(n+ t'e )ir%t c(m*anie% t( intr(duce t'e c(ntem*(rary unit-
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lin/ed *r(duct% 7it' a wide di%tributi(n netw(r/ () 45 branc'e% and cl(%e t(

!anca%%urance *artner%'i*% we are %*read acr(%% nearly 3 t(wn% and citie% in

India.

Sahara India life ins'rance

&'e Sa'ara Pariwar9% late%t )(ray i% in t'e )ield () Ai)e In%urance. &'e Pariwar9%

li)e in%urance c(m*any < Sa'ara India Ai)e In%urance @(m*any Atd.- 'a% been

+ranted licence by t'e in%urance re+ulat(r < t'e I,D" (n t' February 2. 7it'

t'i% a**r(1al Sa'ara India Ai)e In%urance @(m*any Atd. bec(me% t'e )ir%t w'(lly

and *urely Indian c(m*any wit'(ut any )(rei+n c(llab(rati(n t( enter t'e Indian

Ai)e in%urance mar/et. &'e launc' i% wit' an initial *aid u* ca*ital () 456 cr(re%.

&'e @'airman () t'e c(m*any i% S'ri Subrata ,(y Sa'ara w'( i% al%( t'e@'airman () Sa'ara Pariwar.

Shrira% life ins'rance co%pan6

S'riram Ai)e In%urance @(m*any i% t'e j(int 1enture between t'e S'riram Gr(u*

and t'e Sanlam Gr(u*. &'e S'riram Gr(u* i% (ne () t'e lar+e%t and well-re%*ected

)inancial %er1ice% c(n+l(merate% in India. &'e Gr(u*% main line () acti1itie% in

)inancial %er1ice% include c'it )und truc/ )inancin+ c(n%umer durable )inancin+%t(c/ br(/in+ in%urance br(/in+ and li)e in%urance.

&'e Gr(u* 'a% a cu%t(mer ba%e () 3 lac% c'it %ub%criber% and in1e%t(r% and

(*erate% t'r(u+' a netw(r/ () 3 ())ice% all (1er t'e c(untry. &'e Gr(u* 'a% t'e

lar+e%t a+ency )(rce in t'e *ri1ate %ect(r c(n%i%tin+ () m(re t'an 65 l(yal and

dedicated a+ent%.

I?I ortis *ife Ins'rance Co%pan6 *td.

ID!I F(rti% Ai)e In%urance @( Atd i% a j(int-1enture () ID!I !an/ India9% *remier

de1el(*ment and c(mmercial ban/ Federal !an/ (ne () India9% leadin+ *ri1ate

%ect(r ban/% and F(rti% In%urance Internati(nal a multinati(nal in%urance +iant

ba%ed (ut () ;ur(*e. In t'i% 1enture ID!I (wn% euity w'ile Federal !an/

and F(rti% (wn 2 euity eac'. =a1in+ %tarted in Marc' 2 in ju%t )i1e m(nt'%
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() ince*ti(n we became (ne () t'e )a%te%t +r(win+ new in%urance c(m*anie% t(

+arner ,% 4 @r in *remium%. &'e c(m*any ())er% it% %er1ice% t'r(u+' a 1a%t

nati(nwide netw(r/ acr(%% t'e branc'e% () ID!I !an/ and Federal !an/ in

additi(n t( a %i8eable netw(r/ () ad1i%(r% and *artner%.

* Pra%erica *ife Ins'rance Co. *td.

DAF Pramerica Ai)e In%urance @(m*any Atd. #DPAI$ i% a j(int 1enture between

DAF Aimited and Prudential Internati(nal In%urance =(ldin+% Atd. #re)erred t(

'erea)ter a% LPII=L$. PII= i% a )ully (wned %ub%idiary () Prudential Financial Inc.

#re)erred t( 'erea)ter a% LPFIL$. &'e c(mbinati(n () t'e %tren+t' () t'e DAF brand

and PFI% in%urance e0*erti%e *r(1ide t'e %tr(n+e%t *(%%ible )(undati(n% )(r DPAI

t( %ucceed in t'e ra*idly +r(win+ Indian li)e in%urance mar/et.

Star "nion aiBichi *ife Ins'rance Co. *td.

!an/ () India and Cni(n !an/ () India tw( leadin+ Public Sect(r !an/% in India

and t'e Dai-ic'i Mutual Ai)e In%urance @(m*any a leadin+ a*ane%e @(m*any in

t'e Ai)e In%urance mar/et 'a1e )l(ated a (int enture @(m*any LStar Cni(n

Dai-ic'i Ai)e In%urance @(. Atd.L )(r underta/in+ Ai)e In%urance !u%ine%% in India.

&'e @(m*any 'a% a ca*ital %ta/e () 54 by !?I 2 by Dai-ic'i Ai)e and 23

by Cni(n !an/. &'e @(m*any 'a% aut'(ri8ed ca*ital () ,%. 25. @r(re%.

Star Cni(n Dai-ic'i Ai)e wit' t'e %tren+t' () t'e d(me%tic *artner% in t'e Indian

Financial Sect(r c(u*led wit' t'e Dai-ic'i Ai)e9% %tr(n+ d(main e0*erti%e i%

e0*ected t( be a %tr(n+ *layer in t'e Indian Ai)e In%urance mar/et in a %'(rt time.

&'e @(m*any ())er% 1ari(u% *r(duct% t( %er1e all %trata () t'e %(ciety.

IRA (Microins'rance) Re&'lations1889

,e+ulati(n% (n micr(-in%urance were ())icially +a8ette by t'e I,D" (n 3

N(1ember 25. &'e %alient )eature% () t'e re+ulati(n are *re%ented bel(w

The re&'lation defines %icroBins'rance prod'cts
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&'e re+ulati(n *r(1ide% de)initi(n% () micr(-in%urance *r(duct% c(1erin+ li)e and

+eneral in%urance *General "!)ro !ns#ran)e +rod#)t, mean% any 'ealt' in%urance

c(ntract any c(ntract c(1erin+ t'e bel(n+in+% %uc' a% 'ut li1e%t(c/ (r t((l% (r

in%trument% (r any *er%(nal accident c(ntract eit'er (n indi1idual (r +r(u* ba%i%

a% *er term% %tated in Sc'edule-I a**ended t( t'e%e re+ulati(n%. *L!fe "!)ro!ns#ran)e +rod#)t, mean% any term in%urance c(ntract wit' (r wit'(ut return ()

*remium and end(wment in%urance c(ntract (r 'ealt' in%urance c(ntract wit' (ur

wit'(ut an accident bene)it rider eit'er (n indi1idual (r +r(u* ba%i% a% *er term%

%tated in Sc'edule-II a**ended t( t'e%e re+ulati(n%.

#a$ micr(-in%urance *(licyE mean% an in%urance *(licy %(ld under a *lan w'ic'

'a% been %*eci)ically a**r(1ed by t'e "ut'(rity a% a micr( in%urance Pr(duct.

#b$ micr(-in%urance *r(ductE include% a +eneral micr(-in%urance *r(duct (r li)e

in%urance *r(duct *r(*(%al )(rm and all mar/etin+ material% in re%*ect t'ere().#c$ ;1ery in%urer %'all be %ubject t( t'e )ile and u%eE *r(cedure wit' t'e I,D".

#d$ N( (ne (t'er t'an in%urer < be it a micr(-in%urance a+ent (r any(ne el%e < can

underwrite a micr(-in%urance *r(*(%al.

#e$ ,ural bu%ine%% tran%acted under micr(-in%urance by an in%urer will be c(unted

)(r u(ta )ul)illment b(t' )(r rural a% well a% %(cial %ect(r (bli+ati(n%.

It pro%otes the e=tensi2e 'se of inter%ediaries

&'e micr(-in%urance re+ulati(n% *r(m(te e0ten%i1e u%e () intermediarie% by t'e

in%urer% )(r %ellin+ and %er1icin+ 1ari(u% micr(-in%urance *r(duct%. &'e re+ulati(n

al%( create% a new intermediary called t'e micr(-in%urance a+ent. &'e re+ulati(n

clearly de)ine% MI a+ent% and 'a% im*(%ed minima in term% () t'e number () year%

() e0*erience #at lea%t 3$ () w(r/in+ wit' l(w inc(me +r(u*%. It al%( em*'a%i%e%

t'e need )(r %uc' a+ent% t( 'a1e a**r(*riate aim% and (bjecti1e% a +((d trac/

rec(rd tran%*arency and acc(untability %tated in t'e bye-law% wit' dem(n%trated

in1(l1ement () c(mmitted *e(*le. &'i% 'a% been d(ne in (rder t( *re1ent t'e

en+a+ement () un%cru*ul(u% (*erat(r% in t'e acti1ity. =(we1er t'e (nu% )(r t'e

%electi(n () a**r(*riate MI a+ent% and t'eir ca*acity buildin+ lie% wit' t'ein%urance c(m*any.

Inter"ed!ar$: &'e micr( in%urance a+ent can be a N(n-G(1ernmental

?r+ani8ati(n #NG?$ MFI (r (t'er c(mmunity (r+ani8ati(n %uc' a% Sel) =el*

Gr(u*% #S=G$ a**(inted by an in%urer t( di%tribute micr(-in%urance t'r(u+'


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3

%*eci)ied *er%(n%. Micr(-in%urance a+ent% enter int( a deed () a+reementE wit'

t'e in%urer. &'ey abide by t'e c(de () c(nduct de)ined by t'e I,D" and attend 25

'(ur% () trainin+ #d(wn )r(m 4 '(ur% (ri+inally reuired )(r c(n1enti(nal

in%urance a+ent% but n(w reduced t( 5 '(ur%$ in t'e l(cal lan+ua+e at t'e e0*en%e

() t'e in%urer. &'ere i% n( uali)yin+ e0aminati(n unli/e t'e ca%e () (rdinaryin%urance a+ent%.

"cc(rdin+ t( t'e re+ulati(n

#a$ N(n-G(1ernment ?r+ani8ati(n #NG?$ mean% a n(n-*r()it (r+ani8ati(n

re+i%tered a% a %(ciety under any law and 'a% been w(r/in+ at lea%t )(r t'ree year%

wit' mar+inali8ed +r(u*% wit' *r(1en trac/ rec(rd clearly %tated aim% and

(bjecti1e% tran%*arency and acc(untability a% (utlined in it% mem(randum rule

by-law% (r re+ulati(n% a% t'e ca%e may be and dem(n%trate% in1(l1ement ()

c(mmitted *e(*le.#b$ Sel) =el* Gr(u*% #S=G$ mean% any in)(rmal +r(u* c(n%i%tin+ () ten t( twenty

(r m(re *er%(n% and 'a% been w(r/in+ at lea%t )(r t'ree year% wit' mar+inali8ed

+r(u*% wit' *r(1en trac/ rec(rd clearly %tated aim% and (bjecti1e% tran%*arency

and acc(untability a% (utlined in it% mem(randum rule% by-law% (r re+ulati(n% a%

t'e ca%e may be and dem(n%trate% in1(l1ement () c(mmitted *e(*le.

#c$ Micr(-Finance In%tituti(n% #MFI$ mean% any in%tituti(n (r entity (r a%%(ciati(n

re+i%tered under any law )(r t'e re+i%trati(n () %(cietie% (r c(-(*erati1e %(cietie%

a% t'e ca%e may be inter alia )(r %ancti(nin+ l(anB)inance t( it% member%.

I,D" 'a% rec(+ni8ed )(ur cate+(rie% () intermediarie%: br(/er% a+ent% c(r*(rate

a+ent% and Micr(-in%urance #MI$ a+ent%. @ate+(rie% (t'er t'an MI a+ent% may %ell

micr(-in%urance but t'ey d( n(t bene)it )r(m t'e c(nce%%i(n% all(wed )(r t'e MI

a+ent%. =(we1er a micr(-in%urance a+ent %'all n(t di%tribute any *r(duct (t'er

t'an a micr( in%urance *r(duct.

&'e re+ulati(n *r(1ide% )(r MI a+ent% t( *er)(rm t'e )(ll(win+ )uncti(n%

#a$ @(llecti(n () *r(*(%al )(rm%

#b$ @(llecti(n () %el) declarati(n )r(m t'e *r(*(%er t'at 'eB%'e i% in +((d 'ealt'.

#c$ @(llecti(n and remittance () *remium

#d$ Di%tributi(n () *(licy d(cument%

#e$ Maintenance () re+i%ter% () all t'(%e in%ured and t'eir de*endant% c(1ered

under t'e micr( in%urance %c'eme t(+et'er wit' detail% () name %e0 a+e addre%%

n(minee% and t'umb im*re%%i(nB%i+nature () t'e *(licy'(lder.

#)$ "%%i%tance in t'e %ettlement () claim%


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#+$ ;n%urin+ n(minati(n t( be made by t'e in%ured

#'$ "ny *(licy admini%trati(n %er1ice

The re&'lationDs atte%pt to %ana&e the cost of inter%ediation

" ca* 'a% been *ut (n c(mmi%%i(n between 4 and 2 () *remium% *er yearacc(rdin+ t( ty*e and m(de () in%urance *ayment w'ic' i% in e0ce%% () w'at

c(n1enti(nal a+ent% w(uld n(rmally earn. &'e rate% () c(mmi%%i(n a**licable t(

MI a+ent% are

Ai)e in%urance bu%ine%% General in%urance bu%ine%%

Sin+le Premium *(licie% < 45 () t'e

%in+le *remium

N(n-%in+le *remium *(licie% < 2 ()

t'e *remium for all the years of the

premium paying term

45 () t'e *remium

&'e c(mmi%%i(n rate% *re%cribed ab(1e are m(re liberal t'an t'e #() a %in+le

year9% *remium$ *ayable under (rdinary bu%ine%% in t'e ca%e () li)e in%urance and

4 in t'e ca%e () +eneral in%urance. &'i% i% ba%ed (n t'e l(+ic t'at an MI a+ent

'a% t( *er)(rm a number () )uncti(n% w'ic' main%tream a+ent% d( n(t 'a1e t(

underta/e. MI a+ent% may t'u% recei1e c(mmi%%i(n at di))erent rate% )r(m t'(%e

a**licable t( (t'er intermediarie%. &'e c(mmi%%i(n %tructure i% '(we1er c'an+ed

t( rem(1e u*-)r(nt *ayment% in )a1(ur () *ayment% u*(n t'e *er)(rmance ()certain )uncti(n%. F(r +r(u* in%urance *r(duct% t'e in%urer may decide t'e

c(mmi%%i(n %ubject t( t'e (1erall limit% %*eci)ied by I,D".

MI a+ent% may r(ute *remium% and claim% *ayment% t'r(u+' t'eir b((/% #%uc' a%

recei1e indi1idual *remium% and *ay it (1er a% (ne am(unt$. &'i% i% n(t all(wed

)(r (t'er intermediarie% and i% c(n%idered im*(rtant in mana+in+ t'e c(%t ()

intermediati(n.

Colla4orations 4et$een life ins'rers and nonBlife ins'rers

&'e re+ulati(n% all(w )(r t'e bundlin+ () li)e and n(n-li)e element% in (ne %in+le

*r(duct *r(1ided t'ere i% clear %e*arati(n () *remium and ri%/ at t'e in%urer9%

le1el. 7'ere an in%urer carryin+ (n li)e in%urance bu%ine%% ())er% any +eneral

micr(-in%urance *r(duct 'e %'all 'a1e a tie-u* wit' t'e in%urer carryin+ (n +eneral


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in%urance bu%ine%% )(r t'i% *ur*(%e and %ubject t( t'e *r(1i%i(n% () %ecti(n !

() t'e In%urance "ct #+(1ernin+ t'e remittance () t'e *remium am(unt t( t'e

in%urance c(m*any$ t'e *remium attributable t( t'e +eneral micr(-in%urance

*r(duct may be c(llected )r(m t'e *r(%*ect #*r(*(%er$ by t'e in%urer carryin+ (n

li)e in%urance bu%ine%% eit'er directly (r t'r(u+' any () t'e di%tributin+ entitie% ()micr(-in%urance *r(duct%. In t'e e1ent () any claim in re+ard t( +eneral micr(-

in%urance t'e in%urer carryin+ (n li)e bu%ine%% (r t'e a+ent %'all )(rward t'e claim

t( t'e in%urer carryin+ (n +eneral in%urance bu%ine%%. &'e %ame arran+ement '(ld%

true )(r li)e claim% )aced by n(n-li)e 1end(r% () a micr(-in%urance *r(duct. In b(t'

ca%e% t'e re%*ecti1e *rimary )ir%t in%urer w(uld render all a%%i%tance in claim

%ettlement by c((rdinatin+ wit' 'i% (**(%ite number.

The li%itations of the %icroBins'rance re&'lations&'e im*act () t'e MI re+ulati(n% i% li/ely t( be limited )(r a number () rea%(n%

Def!n!t!on of MI agents: &'e re+ulati(n% de)ine MI a+ent% t( include NG?% S=G%

and MFI%. &'e de)initi(n () MFI i% '(we1er limited t( %(cietie% tru%t% and

c((*erati1e% %(cietie% and t'u% e0clude% a lar+e *r(*(rti(n () MFI% (*eratin+

t'r(u+' (t'er le+al )(rm% #li/e )(r-*r()it and n(t-)(r*r()it c(m*anie%$. &'e re%ult

i% t'at all *r()it-dri1en c(r*(rate intermediarie% a% well a% %(me () t'e lar+e%t

a++re+at(r% in micr(-in%urance are currently e0cluded )r(m bene)itin+ )r(m t'e MI

re+ulati(n%. &'(u+' t'e )(rmali%ati(n () MI a+ent% a% a ty*e 'a% been welc(med

by t'e in%urance c(m*anie% a% a *(%iti1e be+innin+ t'e e0clu%i(n () MFI%

re+i%tered under t'e @(m*anie% "ct4 i% 1iewed wit' c(ncern

L!"!tat!on on t&e n#"%er of !ns#ran)e )o"+an!es an M-I )an .or/ .!t&: &'e MI

,e+ulati(n% re%trict a MI a+ent t( w(r/in+ wit' (ne li)e andB(r (ne +eneral in%urer

re%*ecti1ely. &'i% i% *r(blematic and d(e% n(t acc(mm(date m(del% currently u%ed

in t'e MI mar/et. M(%t in%urer% d( n(t want t( underwrite all ri%/% and tend t(

%*eciali8e in *articular ty*e% () ri%/. F(r e0am*le i) a MI a+ent i% tied t(

%*eciali8ed 'ealt' in%urer t'ey cann(t w(r/ wit' an(t'er +eneral in%urer t( %ell

(t'er a%%et in%urance *r(duct%.

0no. Yo#r C#sto"er 10YC2 3 Ant! Mone$ La#nder!ng 1AML2 Nor"s: Micr(

in%urance a+ent% 'a1e e0*re%%ed t'eir c(ncern at t'e di))icultie% )aced by t'em in

acce%%in+ KH@ d(cument% )r(m *r(*(%er% in rural area% %uc' a% elect(ral identity

card (r rati(n card (r electricity bill w'ic' are +enerally acce*ted a% *r(1e% ()

re%idence.


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Co""!ss!on )a++!ng: MI c(mmi%%i(n% are ca**ed at 2 *er annum )(r li)e

acr(%% t'e term () t'e *(licy. N(n-MI *r(duct% ty*ically *ay c(mmi%%i(n (n a

)r(nt-l(aded ba%i% wit' 3-35 in year (ne wit' 6 in year 2. &'e u*-)r(nt

%tructure *r(1ide% little incenti1e )(r renewal% *articularly a% *remium% 'a1e t( be

c(llected in ca%'B c'eue. "t t'e %ame time 2 may n(t be en(u+' t( incenti1i8e%ale%. It i% a c(mm(n #but ille+al under Secti(n () t'e In%urance "ct$ *ractice

)(r a+ent% t( u%e t'e 'i+'er )ir%t year c(mmi%%i(n t( +i1e a di%c(unt t(

*(licy'(lder% in t'e )ir%t year. S(me t'(u+'t w(uld need t( be +i1en t( t'e

minimum ab%(lute c(%t t( %ell a *(licy and t'e c(mmi%%i(n %tructure% needed t(

en%ure t'at t'i% c(uld be c(1ered. Aa*%e rate% () 3- are muc' 'i+'er )(r MI

t'an traditi(nal *(licie%. &'i% i% becau%e t'e c(%tBe))(rt () *remium

c(llecti(nBrenewal e0ceed% t'e c(mmi%%i(n. !e%ide% t'e incidence () t'e %er1ice

ta0 () 42.3 *ayable by t'e a+ent% i% a )urt'er *(int () di%%ati%)acti(n )(r t'e MIa+ent% e%*ecially c(n%iderin+ t'e l(n+ di%tance tra1el t'ey 'a1e t( ma/e in rural

area% t( *r(cure and %er1ice bu%ine%%.

Confl!)t!ng reg#lat!ons: ;nablin+ *r(1i%i(n% intr(duced in t'e MI re+ulati(n% are

undermined by re%tricti(n% in ,!I re+ulati(n%. F(r e0am*le t'e in%urance

re+ulati(n all(w% recei*t () *remium% in t'e )(rm () m(ney in%trument% #n(t ca%'$

w'ic' mu%t be remitted wit'in 2 '(ur%. ,!I in 22 '(we1er i%%ued re+ulati(n%

%tatin+ t'at certain ty*e% () N!F@% #includin+ m(%t MFI%$ may n(t r(ute any

*remium% t'r(u+' t'eir b((/%. &'e im*licati(n i% t'at t'e N!F@ intermediary

mu%t ma/e (ut demand dra)t% )(r indi1idual tran%acti(n% and %end t'em t( t'e

in%urer. Si+ni)icant e))iciencie% can be +ained i) t'e%e intermediarie% were t( be

all(wed t( *r(ce%% all t'e *ayment% t'r(u+' t'eir %y%tem% and ma/e a %in+le

*ayment t( in%urer%.

R#ral Reg!onal Ban/s 1RRB2 and Coo+erat!(e Ban/s: It i% w(rt' )urt'er

e0aminati(n a% t( w'et'er ,,! w'( 'a1e been +i1en t'e %tatu% () c(r*(rate a+ent%

and t'e c((*erati1e ban/% can be br(u+'t int( t'e ambit () MI a+ent% in 1iew ()

t'eir (utreac' in rural area%.

Ho$e2er the %icroBins'rance re&'lation has 4een facilitati2e in/

,educin+ t'e mandat(ry trainin+ reuirement% )(r in%urance a+ent% )r(m 5 '(ur%

t( ju%t 25 '(ur% in t'e ca%e () MI. M(%t in%urance c(m*anie% 'a1e welc(med t'i%

m(1e but )eel t'at t'e tec'n(l(+ical inn(1ati(n% in de1el(*in+ better %y%tem% at t'e

le1el () t'e MI a+ent and real awarene%% creati(n am(n+%t *(tential client%B*(licy


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3

'(lder% are a muc' lar+er c'allen+e t'at w(uld +( a l(n+ way in de1el(*in+ t'e

micr(-in%urance mar/et.

Allo.!ng MI agents to ta/e greater res+ons!%!l!t!es: &'e re+ulat(r 'a% all(wed MI

a+ent% t( ta/e u* +reater re%*(n%ibilitie% t'an are *ermitted t( main%tream a+ent%

)(r e0am*le t'e c(llecti(n () *remium% (n be'al) () t'e in%urance c(m*anie% andt'e %er1icin+ () claim%. I,D" belie1e% t'at i) t'e MI a+ent% are able t( carry (ut

t'e%e )uncti(n% e))ecti1ely it will 'el* in minimi8in+ t'e tran%acti(n c(%t% t'at t'e

in%urance c(m*anie% 'a1e t( incur t'ereby leadin+ t( l(wer *remium% )(r t'e

client% in t'e l(n+ run.

Treat!ng %en!gnl$ a++arent !nfr!nge"ents of t&e reg#lat!ons %$ )o""#n!t$'%ased

organ!sat!ons: &'ere are re%tricti1e entry n(rm% )(r (r+ani8ati(n% t'at are

e0*licitly licen%ed t( *r(1ide in%urance t( t'e +eneral *ublic. In%urance c(m*anie%

need a lar+e am(unt () %tart-u* ca*ital () ,%4 cr(re t( +et a licen%e )r(m t'eI,D". &'i% entry n(rm i% a**licable )(r c(mmunity ba%ed in%urance a% well i) t'ey

want t( underwrite ri%/. I,D" 'a% treated t'e e0i%tin+ ca%e% () in-'(u%e in%urance

wit' beni+n ne+lect. ;%%entially t'i% a**r(ac' i% dictated by t'e relati1ely limited

e0*erience and l(w %u*er1i%(ry ca*acity () t'e I,D". @(m*ared t( t'e 1a%t

number% () *e(*le in need () %(cial *r(tecti(n in India t'e c(1era+e *r(1ided by

b(t' )(rmal and e1en m(re %( by c(mmunity in%urance *r(+ramme% i% %( l(w t'at

t'e r(le () re+ulati(n %eem% )airly limited. &'e creati(n () a tw(-tier %*ace w'ere

t'e in%urance c(m*anie% are re+ulated and %u*er1i%ed and c(mmunity in%urance i%

n(t i% de fa)to rec(+niti(n () t'i% )act.

&'e I,D"9% a**r(ac' i% t'at it i% *(intle%% t( 'a1e re+ulati(n% t'at are n(t *r(*erly

en)(rced a% l(n+ a% c(mmunity in%urance a+encie% *r(1ide c(1er t( a limited

*(*ulati(n t'at i% clearly de)ined #eit'er +e(+ra*'ically (r %(cially (r t'r(u+' (t'er

)(rm% () a%%(ciati(n$ t'ey can be all(wed t( )uncti(n wit'(ut bein+ re+ulated. It i%

'ere t'at t'e re+ulati(n% are n(t 1ery clear )(r MFI% (r NG?% w'ere t'e

member%'i* cann(t be clearly de)ined. "lt'(u+' +enerally limited wit'in a

+e(+ra*'ical territ(ry t'e %cale () %(me MFI% (r NG?% i% %i+ni)icant and %*an%

acr(%% %e1eral %tate%.

Ta=ation iss'es

!y a n(ti)icati(n () 4 uly 24 t'e G(1ernment () India br(u+'t in%urance

au0iliary %er1ice% under t'e ambit () Ser1ice &a0. &'e )(ll(win+ im*(rtant

de)initi(n% and re)erence% are rele1ant in t'i% c(nte0t.


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"% *er %ecti(n 5#34$ in%urance au0iliary %er1iceE mean% any %er1ice *r(1ided by

an actuary an intermediary (r in%urance intermediary (r an in%urance a+ent in

relati(n t( +eneral in%urance bu%ine%% and include% ri%/ a%%e%%ment claim

%ettlement %ur1ey and l(%% a%%e%%ment. Q&a0able e1ent and %c(*e () %er1ice9

mean% any %er1ice *r(1ided t( a *(licy'(lder (r in%urer by an actuary (rintermediary (r in%urance intermediary (r in%urance a+ent in relati(n t( t'e

in%urance au0iliary %er1ice.

&'e %er1ice *r(1ider% are in%urance a+ent% in%urance %ur1ey(r% and l(%% adju%ter%

actuarie% and in%urance c(n%ultant%. In t'e ca%e () in%urance %ur1ey(r% and l(%%

adju%ter% actuarie% and in%urance c(n%ultant% t'e %er1ice i% *r(1ided mainly t( t'e

in%urance c(m*anie% #in%urer$ w'ile in t'e ca%e () in%urance a+ent% t'e %er1ice i%

*r(1ided t( b(t' t'e in%urer and t'e *(licy '(lder. Ser1ice &a0 i% liable t( be *aid

by t'e in%urance au0iliary %er1ice *r(1ider e0ce*t in ca%e () in%urance a+ent%.In%urance a+ent% n(rmally d( n(t c'ar+e t'e *(licy'(lder. =(we1er t'e in%urance

c(m*any *ay% t'e a+ent a c(mmi%%i(n #u%ually a% a *ercenta+e () t'e in%urance

*remium$ (n a *eri(dic ba%i%. In t'e ca%e () an in%urance a+ent it 'a% been

*r(1ided in t'e Ser1ice &a0 ,ule% t'at t'e *er%(n liable t( *ay Ser1ice &a0 will be

t'e c(ncerned in%urance c(m*any w'( 'a% a**(inted t'e a+ent =(we1er a%

*racti%ed by t'e c(m*anie% n( %er1ice ta0 i% *aid by t'e a+ent%. &'e %er1ice ta0 i%

*ayable by t'e *er%(n w'(%e li)e i% a%%ured and t'e current rate i% 42.3 (n t'e

*remium *aid t( t'e li)e in%urance c(m*anie%. I) an a+ent9% accumulated

c(mmi%%i(n )(r t'e year reac'e% ,% 2 ta0 i% deducted #at %(urce$ by t'e

c(m*any at t'e rate () 44.33 #a% *re%cribed by t'e inc(me ta0 rule%$ )r(m t'e

c(mmi%%i(n () t'e a+ent. &'e %er1ice ta0 (n *remium% add% t( t'e *rice ()

in%urance. "n a%%e%%ment () t'e im*act () t'i% ta0 (n t'e c(%t () micr(-in%urance i%

needed. Fr(m t'e *er%*ecti1e () inclu%i(n enablin+ t'e *enetrati(n () in%urance

%er1ice% t( l(w inc(me *e(*le and in rural area% t'ere c(uld be a ca%e )(r

e0em*tin+ micr(-in%urance )r(m t'e *ayment () %er1ice ta0.

MICROINS"RANCE PRO"CTS IN INIA"% )r(m ab(1e we can %ee t'ere are 23 li)e in%urance c(m*anie% are *re%ent in

India but (nly 4 c(m*anie% are *r(1idin+ micr(in%urance *r(duct% t'i% clearly

+i1e an idea () l(w attracti(n () maj(rity () c(m*anie% t(ward% t'e%e *r(duct%.

!el(w i% t'e li%t () micr(in%urance *r(duct% al(n+ wit' t'e name () c(m*anie%:


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3

Na%e of Ins'rer Na%e of the Prod'ct Prod'ct "IN No.

A@I@A *ife Ins. Co. India P2t.

*td.

Grameen Sura/%'a 422N34

?a5a5 Allian *ife Ins'rance Co.

*td

!ajaj "llian8 ana i/a% H(jana

!ajaj "llian8 Saral Sura/%'a H(jana

!ajaj "llian8 "l* Ni1e%' H(jana

44N64

44N4

44N4

?irla S'n *ife Ins'rance Co. *td. !irla Sun Ai)e In%urance !ima

Sura/%'a Su*er

!irla Sun Ai)e In%urance !ima D'an

Sanc'ay

4N324

4N334

* Pra%erica *ife Ins'rance

Co. *td

DAF Pramerica Sar1 Sura/%'a 4N64

ICICI Pr'dential *ife Ins'rance

Co. *td

I@I@I Pru Sar1 ana Sura/%'a 45N44

I?I ortis *ife Ins'rance Co.

*td.

ID!I F(rti% Gr(u* Micr(%urance Plan 435N4

IN, @6s6a *ife Ins'rance Co.

*td.ING y%ya Saral Sura/%'a 44N324

*ife Ins'rance Corporation of

India

AI@% ee1an Mad'ur

AI@% ee1an Man+al

542N24

542N2564

Met *ife India Met i%'wa% 446N24

Sahara India *ife Ins'rance Co.

*td.

Sa'ara Sa'ay(+ #Micr( ;nd(wment

In%urance wit'(ut *r()it *lan$

426N44

S?I *ife Ins'rance Co. *td. S!I Ai)e Grameen S'a/ti

S!I Ai)e Grameen Su*er Sura/%'a

444N34

444N34

Shrira% *ife Ins'rance Co. *td. S'ri Sa'ay

Sri Sa'ay #"P$

42N444

42N424


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3

Star "nion aiBichi *ife

Ins'rance Co

SCD Ai)e Para%*ar Sura/%'a Plan 42N4

TATA AI, *ife Ins'rance Co.

*td.

"yu%'man H(jana

Na1/alyan H(jana

Sam*((rn !ima H(jana

&ata "IG Suman+al !ima H(jana

44N24

44N34

44N4

44N44

Bajaj Allianz Alp Nivesh !jana

"n end(wment *lan wit' Ai)e c(1er and Maturity bene)it eual t( %um a%%ured R1e%ted b(nu%.

Ai)e c(1er and Maturity bene)it eual t( %um a%%ured R 1e%ted b(nu%

Guaranteed Surrender alue.

"1ail additi(nal bene)it% includin+ "ccidental Deat' !ene)it O "ccidental

Permanent &(tal B Partial Di%ability !ene)it.

Bajaj Allianz "ana #i$as !jana

" %in+le *remium *lan wit' maturity bene)it () 425 () t'e %in+le *remium

*ayable (n %ur1i1al till t'e end () t'e *(licy term.

Ai)e @(1er.

Maturity !ene)it () 425() t'e %in+le *remium *ayable (n %ur1i1al till t'e

end () t'e *(licy term.

Guaranteed Surrender alue.

Bajaj Allianz Sa%al S&%a$sha !jana

&'e M(%t ec(n(mical term in%urance *(licy wit' return () *remium (n maturity.

,eturn () *remium (n maturity

Guaranteed Surrender alue


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"1ail additi(nal bene)it% includin+ "ccidental Deat' !ene)it O "ccidental

Permanent &(tal B Partial Di%ability !ene)it

A#I#A Li'e(s )G%a*een S&%a$sha(

" micr(-in%urance rural term in%urance *lan )(r !"SI cu%t(mer%. &'i% traditi(nal

term *lan 'a% been de1el(*ed wit' t'e (bjecti1e () +i1in+ t'e rural *(licy'(lder

ma0imum bene)it%.

t'e *(licy'(lder *ay% *remium )(r a *eri(d () ju%t tw( year% and t'en a1ail%

t'e term bene)it )(r 5 (r 4 year%

&'e minimum %um a%%ured i% ,% 5 and t'e ma0imum i% ,% 5.

In additi(n ta0 bene)it% can be a1ailed a% *er Secti(n @ () t'e Inc(me&a0"ct 44.

.

BSLI Bi*a Dhan San+ha,

" 7in-7in Situati(n Security *lu% Guarantee. &'e re)und () *remium% *aid

by y(u i% +uaranteed wit' 3 maturity (*ti(n%.

Sum "%%ured ,%.5B- t( ,%.5B-

Ma0imum Maturity a+e 5 year%

" +race *eri(d () 4 day% )r(m t'e *remium due date will be a1ailable t(

y(u

"n (*ti(n )(r additi(nal Sum "%%ured i% a1ailable *r(1ided t'e ba%e %um

a%%ured i% minimum ,% 4B- and t'e %um a%%ured under t'e rider %'(uld

n(t e0ceed t'e %um a%%ured under t'e ba%e *r(duct i) t'e deat' (ccur% due t(

accident


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BSLI Bi*a S&%a$sha S&pe%

!SAI !ima Sura/%'a Su*er *r(1ide% y(u li)e in%urance c(1er )(r w'ic' y(u 'a1e

t( *ay re+ular *remium. &'e n(minee +et% t'e %um a%%ured in t'e un)(rtunate

e1ent () deat'.

!SAI !ima Sura/%'a Su*er *r(1ide% y(u li)e in%urance c(1er )(r w'ic' y(u

'a1e t( *ay re+ular *remium. &'e n(minee +et% t'e %um a%%ured in t'e

un)(rtunate e1ent () deat'.

H(ur *remium de*end% (n y(ur a+e +ender Sum "%%ured and bene)it

*eri(d c'(%en.

"t maturity t'ere i% n( bene)it *ayable.

"n (*ti(n )(r additi(nal Sum "%%ured i% a1ailable *r(1ided t'e ba%e %um

a%%ured i% +reater t'an (r eual t( 4B- i) t'e deat' (ccur% due t(

accident.

ICICI P%& Sa%v "ana S&%a$sha

I@I@I Prudential Ai)e In%urance *re%ent% it% )ir%t Micr( In%urance Plan - Sar1 ana

Sura/%'a < e%*ecially de%i+ned )(r rural *(*ulati(n w'ic' *r(1ide% t(tal %ecurity t(

y(u and y(ur )amily at 1ery a))(rdable c(%t.

Min B Ma0 entry a+e-4 year% - 55 year%

MinBMa0 Sum "%%ured- ,%. 5 -,%. 5

P(licy &erm -5 year%

@(1er cea%in+ a+e - year%

SBI Li'e ins&an+e(s G%a*een S&pe% S&%a$sha an- G%a*een Sha$.i


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S!I Ai)e in%uance9% Grameen Su*er Sura/%'a and Grameen S'a/ti *r(duct% 'a1e

been de%i+ned t( meet t'e reuirement% () t'e wea/er %ecti(n% () t'e rural

*(*ulati(n.

Grameen Su*er Sura/%'a i% a micr( in%urance *ure term *r(duct and GrameenS'a/ti i% micr( in%urance *r(duct wit' ,?P.

Grameen S'a/ti i% a dual bene)it li)e in%urance *r(duct t( %a)e +uard t'e +r(u*

member w'ic' *r(1ide% Pr(tecti(n wit' maturity bene)it at a))(rdable rate%. It

())er% t( t'e FamilyE () t'e +r(u* member Pr(tecti(nE O it ())er% t( t'e Gr(u*

memberE %ur1i1al !ene)it.

'ration of plan# 5 year% (r 4 year% a% *er t'e Gr(u* Ma%ter *(licy'(lder%

c'(ice.

A&e at entr6# Minimum 4 year% a+e la%t birt'day.Ma0imum 5 year% a+e la%t birt'day.

S'% ass'red# ,%.5 B- t( ,%.5 B- #in multi*le% () 5$ a% *er c'(ice ()

Ma%ter P(licy'(lder.

Pre%i'% fre'enc6# Hearly.

Re'ire%ent fro% the ,ro'p %e%4er# "ut(matic acce*tance lin/ed t(

%i+nature () Member%'i* )(rm t'at include% G((d 'ealt' declarati(n and

n(minati(n clau%e.

eath ?enefits# Fir%t 5 day% a)ter t'e c(1er %tart date (r a)ter t'e re1i1al date %ince t'ey 'a1e t( %a)e+uard a

minimal le1el () inc(me )(r t'em%el1e% and t'eir )amilie% cr(*% will be +r(wn

w'ic' are m(re dr(u+'t re%i%tant but w'ic' 'a1e a muc' l(wer yield in +((d

weat'er c(nditi(n%.


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3

*ITERAT"RE RE@IEW

It i% e%timated t'at India 'a% 3 milli(n !PA *(*ulati(n (r milli(n !PA

)amilie% wit'(ut any /ind () %(cial *r(tecti(n. &'e %*read () 'ealt' in%urance i%

(nly ne+li+ible in t'i% %e+ment and t'at t(( becau%e () t'e NG?% (*eratin+ in t'i%

arena. "lt'(u+' t'e reac' () %uc' %c'eme% i% %till 1ery limited---anyw'ere between

5 and 4 milli(n indi1idual%---t'eir *(tential i% 1iewed t( be c(n%iderable. &'e(1erall mar/et i% e%timated t( reac' ,%. 25 billi(n by 2 #IA? 2$. !ut

unle%% t'e *e(*le )r(m t'i% %e+ment de1el(* c(n)idence (1er t'e in)ra%tructure

)acilitie% and t'e a%%urity () t'e %u**ly c'ain mana+ement () in%urance %er1ice%

t'i% will n(t be *ractically *(%%ible.

Martina 7iedmaier-P)i%ter #2$ re1ealed t'at a number () clari)icati(n% are

im*(rtant )(r t'e in%urer%. &'e )ir%t *(int relate% t( t'e delineati(n () %(cial

*r(tecti(n %c'eme% #+(1ernment dri1en and *r(1idedE t( t'e *((re%t$ and

*ri1ately mar/et-led in%urance %er1ice% #*r(1ided by a *ri1ate in%urer (r

in)(rmally (r+ani8ed and b(u+'tE by t'(%e w'( can a))(rd t'em$. &'e %ec(nd

*(int relate% t( t'e r(le () rein%urance w'ic' i% de)initi1ely a crucial area )(r

micr(in%urance. &'ird t'e 'i%t(ry and e0*erience% () t'e re+ulati(n and

%u*er1i%i(n () micr(in%uranceE in indu%triali8ed c(untrie% c(uld al%( n(t be

c(n%idered.


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,ame%' !'at and Ni%'ant ain #2$ e0amine% t'e )act(r a))ectin+ in%urance

*urc'a%e deci%i(n 'i% %tudy at "nand di%trict in Gujarat in 'i% %tudy 'e )(und t'at

am(unt () inc(me and 'ealt'care e0*enditure are maj(r determinant () 'ealt'

in%urance *lan% and inc(me () *er%(n 'a1e %i+ni)icant e))ect (n am(unt () 'ealt'

in%urance *urc'a%e but t'ere i% n(nlinear relati(n%'i* between t'em in additi(nnumber () c'ildren in )amily a+e and *erce*ti(n re+ardin+ )uture 'ealt' care

e0*enditure were al%( )(und t( be %i+ni)icant.

Dr. S. Gane%an and Dr. S. aya*ra/a%' in ;le1ent' "nnual "P,I" @(n)erence

#26$ ab(ut Micr( !anc a%%urance M(del% )(r India %u++e%t t'at t'e +r(wt' ()

micr( in%urance in India d(e% n(t lie% (nly in t'e 'and% () t'e *r(duct de%i+n

di%tributi(n netw(r/ but al%( in creatin+ t'e *r(*er in)ra%tructure t'at can %u**(rt

t'e %er1icin+ () in%urance *(licie%. India i% a 1ery bi+ c(untry wit' 1illa+e% a% it%

bac/b(ne%. ;n(rm(u% in1(l1ement () 1ari(u% %ta/e'(lder% i% reuired t( create*r(*er in)ra%tructure )(r t'e +r(wt' () in%uranceBmicr( in%urance in t'e rural area%.

=e %tre%%e% t'e need )(r 1iewin+ t'e ban/% n(t a% a mere di%tributi(n c'annel )(r

in%urance but t( c(n1ert t'e %ame int( a %trate+ic bu%ine%% unit w'erein t'e ban/%

will be t'e e*icenter () (*erati(n% )(r t'e +r(wt' () t'e in)ra%tructure in t'e rural.

im r(t' Mic'ael . Mac@(rd and D(minic Aiber #26$ *re%ented a re*(rt w'ic'

+i1e% a de%cri*ti(n ab(ut t'e )uncti(nin+ () Micr(in%urance and detailed

uantiti1e (1er1iew () micr(in%urance in w(rld9% 4 *((re%t c(untrie%in w'ic' 'e

e0*lain% ab(ut di%tributi(n c'annel% ty*e% () micr(in%urer% and 1ari(u%

micr(in%urance *r(duct% re+ulati(n and %(cial %ecurity %c'eme% in 4 c(untrie%

includin+ India.

Seir( It( and =i%a/i K(n( #26$ in1e%ti+ate ta/e-u* deci%i(n% u%in+ '(u%e'(ld

data c(llected in Karnata/a India e%*ecially )(cu%in+ (n *r(%*ect t'e(ry

'y*erb(lic *re)erence and ad1er%e %electi(n. &'ere t'ey )(und %(me e1idence t'at

*e(*le be'a1e in a ri%/-l(1in+ way w'en )acin+ t'e ri%/ () l(%%e% w'ic' i%

c(n%i%tent wit' *r(%*ect t'e(ry. Since in%urance c(1er% l(%%e% we %u%*ect t'at

t'e%e *e(*le are le%% li/ely t( ta/e u* in%urance and t'ey )(und %(me e1idence%u**(rtin+ t'i% 1iew. &'ey al%( )ind t'at 'y*erb(lic di%c(unter% are m(re li/ely t(

*urc'a%e in%urance a )act w'ic' can be e0*lained by t'e demand )(r c(mmitment

am(n+ %(*'i%ticated 'y*erb(lic di%c(unter% 'a1e. "l%( )ind %(me e1idence (n t'e

e0i%tence )(r ad1er%e %electi(n: '(u%e'(ld% wit' a 'i+'er rati( () %ic/ member% are

m(re li/ely t( *urc'a%e in%urance. Intere%tin+ly t'ey al%( )ind t'at '(u%e'(ld%


41/67

3

wit' a %ic/ '(u%e'(ld 'ead are le%% li/ely t( *urc'a%e t'e in%urance. &'i% may

ca*ture t'e )act t'at '(u%e'(ld% wit' a %ic/ '(u%e'(ld 'ead 'a1e le%% inc(me )l(w

and 'a1e di))iculty in )inancin+ t'e in%urance *remium.

K(li N ,a( #uly 2$ %aid t'at in India a+ricultural ri%/% are e0acerbated by a

1ariety () )act(r% ran+in+ )r(m weat'er 1ariability )reuent natural di%a%ter%uncertaintie% in yield% and *rice% wea/ rural in)ra%tructure im*er)ect mar/et% and

inadeuate and %ub-(*timal )inancial %er1ice% includin+ t'e limited %*an and

de%i+n () ri%/ miti+ati(n in%trument% %uc' a% credit and in%urance and )armer% u%e

a 1ariety () )(rmal and in)(rmal tec'niue% t( mana+e and miti+ate ri%/ ran+in+

)r(m t'e u%e () dr(u+'t re%i%tant cr(* 1arietie% t( reduced c(n%um*ti(n and %ale ()

a%%et%. &'e G(1ernment i% al%( im*lementin+ a lar+e number () %c'eme% t(

*r(1ide %ucc(r t( )armer% )acin+ ad1er%ity t'e @(m*re'en%i1e "+riculture ri%/

mana+ement )ramew(r/ can be *re%ented in t'ree main cate+(rie%:&'e )ir%t c(1er% direct initiati1e% (n t'e *art () t'e G(1ernment %uc' a%

a+ricultural credit in*ut %ub%idie% and calamity relie). &'e %ec(nd c(1er% indirect

initiati1e% (n t'e *art () t'e G(1ernment t( miti+ate *r(ducti(n ri%/% t'r(u+'

in%urance mec'ani%m% c(1erin+ cr(*% weat'er and li1e%t(c/ and includin+ micr(

in%urance. &'irdly G(1ernment and mar/et-ba%ed a**r(ac'e% t( miti+ate *rice (r

inc(me ri%/% w'ic' include minimum %u**(rt *rice% )arm inc(me in%urance a

*rice %tabili8ati(n )und c(mm(dity mar/et% c(ntract )armin+ etc. 'e al%( t(ld

ab(ut di))erent %ta+e% () de1el(*ment () micr(in%urance in India: &'ere are t'ree

di%tinct *'a%e% () micr(-in%urance #MI$ de1el(*ment in India. &'e )ir%t *'a%e

c(incided wit' t'e intr(ducti(n () tar+et- (riented *(1erty alle1iati(n *r(+ram%

%uc' a% t'e Inte+rated ,ural De1el(*ment Pr(+ram #I,DP$. &'e %ec(nd *'a%e ()

MI +r(wt' can be %een in c(njuncti(n wit' t'e +r(wt' () credit di%bur%ement t(

t'e *((rer %e+ment% () %(ciety t'r(u+' t'e Sel) =el* Gr(u*% #S=G%$. &'i% %aw an

increa%e in t'e r(le () N(n-G(1ernmental ?r+ani8ati(n% #NG?%$ )(r t'e *ur*(%e%

() intermediati(n and t'e *r(li)erati(n () Micr()inance In%tituti(n% #MFI%$. &'e

t'ird *'a%e () MI de1el(*ment wa% b(rne (ut () t'e increa%in+ reali8ati(n () t'e

need )(r an increa%ed c(1era+e () *((rer '(u%e'(ld% t'r(u+' %(me )(rm () %(cial

%ecurity mea%ure.

Mar/ mali/a and "net &. Kuria/(%e #2$ di%cu%%ed t'e r(le () micr(in%urance in

miti+atin+ e0ternal %'(c/% (n *((r '(u%e'(ld. =e al%( %tre%%ed (n care)ul attenti(n


42/67

3

and e0*ert tec'nical in*ut i% reuired in de%i+nin+ micr(in%urance *r(duct% and

*r(+ram% a% t'ey are %i+ni)icantly m(re c(m*le0 t'an and credit *r(+ram% ())ered

by di))erent (r+ani8ati(n%. C%e () di))erent ri%/ layerin+ u%in+ di))erent )(rm ()

rein%urance t( c(1er t'e in%urer i% crucial )r(m a )inancial %u%tainability %tand*(int

and t'e u%e () 1ari(u% (utreac' mec'ani%m t( reac' *((r '(u%e'(ld i% nece%%ary)r(m an euity *(int () 1iew.

Mic'ael Mac@(rd #Marc' 2$ %u++e%ted many in*ut% reuired t( reac'

micr(in%urance t( billi(n% () *((r *e(*le% %(me () t'e%e in*ut% are - @((rdinati(n

() /n(wled+e () acti1itie% t( all(w all *artie%- mutual9% c(mmercial in%urer%

intermediarie% and deli1ery c'annel% +(1ernment% d(n(r% and (t'er%Vt(

ma0imi8e e))ecti1ene%% Im*r(1in+ *r(duct% and *r(ce%%e% t'at rec(+ni8e t'e

need% () l(w-inc(me )amilie% and %ati%)y t'eir need% wit' 1alue Inn(1ati(n in

*r(ce%%e% t'at can be re*laced (r au+mented by tec'n(l(+y. &'i% reuire% )inancialand re+ulat(ry )acilitati(n and an (*enne%% t( ())er %uc' tec'n(l(+y (n a *ublic

*lat)(rm @are)ul de1el(*ment () re+ulati(n t'at e))ecti1ely balance% t'e need )(r

c(n%umer *r(tecti(n wit' t'e )le0ibility needed t( de1el(* and %er1ice a ma%%i1e

mar/et.

,ac'ele Pierr(#2$ +i1e% an (1er1iew () @'ri%tian "id intere%t in cr(*B weat'er

micr(-in%urance #MI$ a% well a% *artner%in1(l1ement in micr(-in%urance related

*r(duct% and %er1ice%E in 'i% re%earc' 'e )(und t'at maj(rity () *e(*le inter1iewed

#5$ belie1e cr(*Bweat'er in%urance w(uld 'el* *((r )armer% in mana+in+

weat'er ri%/% and t'i% *ercenta+e ri%e% t( 4 )(r inter1iewee% ba%ed in )ield.

F(r m(%t re%*(ndent% c(nditi(n% )(r %ucce%%)ul MI w(uld be t'e *re%ence ()

em*(wered c(mmunitie% and t'e ab%ence () c(n)lict w'ile *r(tecti(n t( di))erent

cate+(rie% () *((r #n(t (nly )armer% but al%( landle%% and mar+inali8ed *a%t(rali%t

c(mmunitie%$ ma/e% weat'er in%urance m(re a**ealin+ t'an traditi(nal cr(*

in%urance.

7endy . 7erner #"u+u%t 2$ analy%e% micr(-in%urance %c'eme% in !an+lade%'

wit' c(ntra%tin+ e0am*le% )r(m India and )(und t'at t'e%e %c'eme% im*r(1e% t'e

'ealt' %tatu% () *((r and al%( it reduce% *(1erty t'e%e micr(i%urance %c'eme% 'ad

reduced t'e barrier% () 'ealt' %er1ice% )(r *((r and enc(ura+ed t'em t( a1ail ()

clinic% and trained medical care i.e. t'e micr(-in%urance %c'eme% )(r 'ealt' in

!an+lade%'i 'a1e increa%ed acce%% t( ba%ic 'ealt'care =(we1er t'ere i% b(t'

demand and nece%%ity )(r %ur+erie% and m(re e0*en%i1e medical *r(cedure% am(n+

t'e *((r t'at remain% unaddre%%ed by ba%ic micr(in%urance )(r 'ealt'. Micr(-


43/67

3

in%urance can %er1e t'e intere%t% () *((r *(*ulati(n% wit' ri%/-*((lin+ t( mana+e

un*redictable em*l(yment )l(w% () inc(me and cata%tr(*'ic e1ent%. &( en%ure

t'at micr(-in%urance %a)e+uard% t'e a%%et% and intere%t% () t'e *((r micr(-

in%urance initiati1e% mu%t e0erci%e *r()e%%i(nal mana+ement *r(duct

de1el(*ment mana+ement in)(rmati(n %y%tem% and re-in%urance.

O?JECTI@E O ST">

&( )ind t'e awarene%% () micr(in%urance am(n+ t'e *((re%t +r(u* () *e(*le

in Ind(re.

&( )ind t'e client need () Micr(in%urance in Ind(re.

&( )ind t'e *re)erence () 1ari(u% *r(duct% in Micr(in%urance () client%.

&( e0*lain t'e 1ari(u% di))icultie% () in%urer% t( *r(duce mar/et and

di%tribute di))erent micr(in%urance *r(duct%.


44/67

3

RESEARCH METHOO*O,>

,e%earc' re)er% t( a %earc' )(r /n(wled+e. It i% a %y%tematic met'(d () c(llectin+

and rec(rdin+ t'e )act% in t'e )(rm () numerical data rele1ant t( t'e )(rmulated

*r(blem and arri1in+ at certain c(nclu%i(n% (1er t'e *r(blem ba%ed (n c(llected

data.

&'u% )(rmulati(n () t'e *r(blem i% t'e )ir%t and )(rem(%t %te* in t'e re%earc'*r(ce%% )(ll(wed by t'e c(llecti(n rec(rdin+ tabulati(n and analy%i% and drawin+

t'e c(nclu%i(n%. &'e *r(blem )(rmulati(n %tart% wit' de)inin+ t'e *r(blem (r

number () *r(blem% in t'e )uncti(nal area. &( detect t'e )uncti(nal area and l(cate

t'e e0act *r(blem i% m(%t im*(rtant *art () any re%earc' a% t'e w'(le re%earc' i%

ba%ed (n t'e *r(blem.

In %'(rt t'e %earc' )(r /n(wled+e t'r(u+' (bjecti1e and %y%tematic

met'(d () )indin+ %(luti(n t( a *r(blem i% re%earc'. &'e re%earc' ty*e will be t'e

de%cri*ti1e re%earc' ab(ut t'e need% and *re)erence% ab(ut t'e micr(in%urance t(t'e *(tential tar+et *e(*le in Ind(re.


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3

DRA-TING 4UESTIONNAIRE

&'e ue%ti(nnaire i% c(n%idered a% t'e m(%t im*(rtant t'in+ in a %ur1ey (*erati(n.

=ence it %'(uld be care)ully c(n%tructed. Structured ue%ti(nnaire c(n%i%t () (nly

)i0ed alternati1e ue%ti(n%. Suc' ty*e () ue%ti(nnaire i% ine0*en%i1e t( analy%i%

and ea%y t( admini%ter. "ll ue%ti(n% are cl(%ed ended. In t'i% re%earc' t'e

ue%ti(nnaire i% %tructured and cl(%e ended ue%ti(nnaire.

DATA COLLECTION

&'e ta%/ () data c(llecti(n be+in% a)ter t'e re%earc' *r(blem 'a% been

de)ined and re%earc' de%i+n c'al/ed (ut. 7'ile decidin+ t'e met'(d () data

c(llecti(n t( be u%ed )(r t'e %tudy t'e re%earc'er %'(uld /ee* in mind tw( ty*e% ()

data 1i8. Primary and %ec(ndary data.

Pri%ar6 ata# B &'e *rimary data are t'(%e w'ic' are c(llected a)re%' and )(rt'e )ir%t time and t'u% 'a**en t( be (ri+inal in c'aracter. &'e *rimary data were

c(llected t'r(u+' well-de%i+ned and %tructured ue%ti(nnaire% ba%ed (n t'e

(bjecti1e%.

Secondar6 ata#

&'e %ec(ndary data are t'(%e w'ic' 'a1e already been c(llected by

%(me(ne el%e and *a%%ed t'r(u+' %tati%tical *r(ce%%. &'e %ec(ndary data reuired() t'e re%earc' wa% c(llected t'r(u+' 1ari(u% new%*a*er% and Internet etc.

SAMPLING

It wa% di1ided int( )(ll(win+ *art%:

Sa%plin& 'ni2erse

"ll t'e l(w inc(me +r(u*% () Ind(re are t'e %am*lin+ uni1er%e )(r t'e re%earc'.

Sa%plin& techni'e

ud+mental %am*lin+

Sam*le wa% ta/en (n jud+mental ba%i%. &'e ad1anta+e () %am*lin+ are t'at it i%

muc' le%% c(%tly uic/er and analy%i% will bec(me ea%ier. Sam*le %i8e ta/en wa%

4 re%ident% () Ind(re.


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3

LIMITATION O- STUDY

"% (nly INOREdealt in %ur1ey %( it d(e% n(t re*re%ent t'e 1iew () t'e

t(tal Indian mar/et.

Si8e () t'e re%earc' may n(t be %ub%tantial a% %am*le %i8e i% (nly 4 and it

d(e% n(t re*re%ent w'(le *(*ulati(n () Ind(re.

&'ere wa% lac/ () time (n t'e *art () re%*(ndent%.

&'e %ur1ey wa% carried t'r(u+' ue%ti(nnaire and t'e ue%ti(n% were ba%ed

(n *erce*ti(n.

&'ere may be bia%ne%% in in)(rmati(n by re%*(ndent%.

ATA ANA*>SIS

In t'i% %ecti(n () t'e re%earc' all t'e *rimary data are analy%ed wit' t'e 'el* () *ie

c'art% and bar +ra*'%.

Resp!n-en.(s P%!'ile

"ll () t'e re%*(ndent% are daily earner% c'(%en rand(mly and all () t'em are male

wit' a+e m(re t'an 25 year%. Ma0imum re%*(ndent% are Gumtiwala% and

&'ellawala% %(me () t'em are uni1er%ity =(%tel and C&D +uard%.

What is ann'al inco%e of a%il6F

O+t!on N#"%er of res+ondents

Ae%% t'an 3

3-

-

m(re t'an

5

35

44


47/67

3

Maj(r *(rti(n () re%*(ndent% bel(n+% t( inc(me +r(u* 3- (nly 44

re%*(ndent9% )amily inc(me i% m(re t'an ninety t'(u%and% a% t'ere i% m(re t'an

(ne earner in t'eir )amily.

N'%4er of fa%il6 %e%4er in their ho'seF


2

3

5

M(re t'an

5

263

2


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3

M(%t () re%*(ndent% are married 'a1in+ (ne (r tw( c'ildren. 3 () re%*(ndent%

'a1e )amily () %i8e 5 26 and 2 () re%*(ndent% li1e in a )amily () and %i0

re%*ecti1ely

o 6o' 'nderstand %icroins'ranceF


He%

N(

4


49/67

3

"% we can %ee )r(m ab(1e *ie c'art 4 re%*(ndent% are t(tally un

aware () t'e Micr(in%urance.

Ha2e 6o' e2er in2ested in an6 Ins'rance polic6F


He%

N(

6

3


50/67

3

?nly %e1en re%*(ndent% 'a1e in1e%ted in In%urance *(licy and re%t ()

3 () re%*(ndent% 'a1e n(t in1e%ted in any in%urance *(licy.

o 6o' thinG ins'rance is $ill helpf'l to 6o'F


He%

N(

5

42


51/67

3

May be 32

")ter e0*lainin+ t'em ab(ut bene)it% () in%urance 5 () re%*(ndent%

%ay% in%urance will be 'el*)ul )(r t'em and 32 were in dilemma .

Are 6o' interested in in2estin& in Microins'ranceF


He%

N(

6

2


52/67

3

"% )r(m ab(1e )i+ure we can %ee t'at 6 () re%*(ndent% are intere%ted

in in1e%tin+ in Micr(in%urance but 2 were n(t intere%ted in

Micr(in%urance.

oes an6 ins'rance a&ent ha2e co%e to 6o' for 6o'r ins'ranceF


He%

N(

3

56


53/67

3

In %*ite () (nly 6 'ad in1e%ted in in%urance but 3 re%*(ndent% were a**r(ac'ed by

in%urance a+ent% ma0imum () a+ent% are () AI@. It %'(w% t'e wide netw(r/ ()

a+ent% () AI@ am(n+ t'e l(we%t cla%% () t'e *e(*le. ,e%t () 56 () re%*(ndent%

are n(t a**r(ac'ed by any in%urance a+ent%

If an opport'nit6 co%es in front of 6o' to in2est in Ins'rance $hich t6pe of

or&aniation 6o' $ill chooseFO+t!on N#"%er of res+ondents

G(1ernment in%urance c(m*any

Pri1ate %ect(r in%urance c(m*any


54/67

3

"b(ut () re%*(ndent% c'((%e +(1ernment (wned in%urance c(m*anie% rat'er

t'an *ri1ate in%urance c(m*anie%

o 6o' ha2e an6 acco'nt inF


!an/ and P(%t ())ice

!an/ and @((*erati1e %(ciety

!an/ and ?t'er%

22

2

2


55/67

3

"ll () re%*(ndent% 'a1e a ban/ acc(unt +enerally all () t'em 'a1e ban/ acc(unt i%

PS!% 2 'a1e recurrin+ acc(unt l(cal c(-(*erati1e %(ciety ban/% w'ic' daily

ta/e% %(me am(unt )(r de*(%itin+ %ame li/e )(rmer %(me () t'em 'a1e in acc(unt

in S"="," and (t'er N!F@% w'ere t'ey daily (r wee/ly de*(%it m(ney ran+in+

)r(m 4-2 wee/ly. 22 () t'e re%*(ndent% 'a1e de*(%it acc(unt in P(%t-())ice.

In $hich t6pe of Ins'rance polic6 6o' $ill in2est ha2e in2estedF

O+t!ons N#"%er of res+ondents

&erm In%urance P(licy

;nd(wment P(licy

Cli* P(licy

=ealt' In%urance P(licy

4

53

2


56/67

3

M(re t'an 'al) () re%*(ndent% c'((%e end(wment *(licie% 'ealt'

in%urance () t'eir c'ildren c(me% at %ec(nd *re)erence and term

in%urance c(me% ne0t t( t'em.

Ho$ %'ch pre%i'% 6o' are pa6in&$ill prefer ann'all6 for ins'ranceF


Ae%% t'an 4

4-3

3-5

M(re t'an 5

5

35

5

3


57/67


58/67

3

"% )r(m ab(1e +ra*' we can %ee t'at 33 () re%*(ndent% want t( *ay daily and

3 want% t( *ay m(nt'ly *remium 46 () re%*(ndent% c'((%e t( *ay wee/ly

*remium )(r t'e in%urance a% maj(rity () t'e%e re%*(ndent% are daily earner%.

Where $ill 6o' prefer to &i2e 6o'r pre%i'%F

O+t!on N#"%er of res+ondents"t y(ur d((r %te*

"t !an/

"t P(%t ())ice

?t'er *lace


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3

() re%*(ndent% *re)er t( +i1e *remium at t'eir '(me (r at t'eir %'(* (nly

re%*(ndent% *re)er% ban/ and n(ne () t'em *re)er *(%t ())ice (r any (t'er *lace.

ININ,S

!el(w are t'e )indin+% () t'e re%earc' all t'e (*ti(n% were tic/ by re%*(ndent% t'e

)indin+% are %ummari8ed in t'e table w'ere )ir%t c(lumn re*re%ent% ue%ti(n% in t'eue%ti(nnaire %ec(nd c(lumn re*re%ent% (*ti(n% () t'e ue%ti(n% and t'ird c(lumn

re*re%ent% number () re%*(ndent% tic/% e1ery (*ti(n%.

4. Ma0imum () re%*(ndent% were daily earner% t'eir inc(me 1arie% )r(m

%ea%(n t( %ea%(n in t'eir *ea/ %ea%(n% t'e earn% 2-3 *er day but in ())


60/67


61/67

3

. "ll () re%*(ndent% 'a1e a ban/ acc(unt +enerally all () t'em 'a1e ban/

acc(unt i% PS!% a% minimum de*(%it reuired in t'e%e ban/% are +enerally

l(wer t'an *ri1ate ban/% %ec(nd 'i+'e%t number 2 'a1e recurrin+

acc(unt l(cal c(-(*erati1e %(ciety ban/% w'ic' daily ta/e% %(me am(unt )(r

de*(%itin+ %ame li/e )(rmer %(me () t'em 'a1e in acc(unt in S"="," and(t'er N!F@% w'ere t'ey daily (r wee/ly de*(%it m(ney ran+in+ )r(m 4-

2 wee/ly. 22 () t'e re%*(ndent% 'a1e de*(%it acc(unt in P(%t-())ice.

4. ")ter e0*lainin+ t'em ab(ut di))erent ty*e% () in%urance *(licie% 53 ()

re%*(ndent% (*ted end(wment *(licy a% a)ter maturity *eri(d t'ey +et bac/

in1e%ted am(unt. 2 () re%*(ndent% (*t )(r 'ealt' in%urance a% =ealt'

in%urance reimbur%e all t'e '(%*itali8ati(n e0*en%e% () in%ured ma0imum ()

re%*(ndent% wa% curi(u% ab(ut CAIP *(licie% but lac/ () d(cument li/e Pan

@ard ri%/ () l(%in+ m(ney and 'i+' c(%t () in%urance *re1ent% t'em t( (*tCli* *(licy l(w c(%t () term in%urance i% 1ery +((d )(r t'em but n(

reimbur%ement a)ter maturity i) n(t'in+ mi% -'a**en wit' t'em %t(* t'em t(

(*t )(r &erm in%urance.

44. 5 () re%*(ndent% are ready t( in1e%t daily 4-2 ,%. )(r in1e%tment in

in%urance. "l%( t'ey want %(me )le0ibility in *ayment () *remium li/e i)

t'ey can9t *ay *remium () t'e day t'ey can +i1e (n ne0t day. S(me () t'em

al%( %u++e%t t'at in t'e bu%ine%% %ea%(n t'ey can +i1e d(uble () t'e *remium

am(unt and w'en bu%ine%% i% ()) t'ey will n(t *ay *remium 35 ()

re%*(ndent% want% t( *ay 4 t( 3 ,% )(r *remium.

42."b(ut t'ree-)(urt' () t'e re%*(ndent% (*t% t( *ay *remium at 1ery %'(rt

durati(n a% t'ey are mainly daily earner %( t'ey want t( *ay *remium a%

%((n a% t'ey earn it +i1e% ea%e t( t'em t( *ay *remium daily (r wee/ly

ma0imum () t'em 'a1e a recurrin+ acc(unt and ban/ *er%(nal daily c(me t(

c(llect m(ney )(r t'eir de*(%it% in t'e %ame way t'ey want *ay *remium )(r

t'eir in%urance. 33 () re%*(ndent% want t( *ay daily and 3 want% t( *ay

m(nt'ly *remium.

43."**r(0imately all () t'e re%*(ndent% want t( *ay *remium at t'eir d((r %te*

t'ey want in%urance a+ent% t( c(me at t'eir %'(* (r t'eir '(me t( c(llect

*remium () t'e in%urance.


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3

CONC*"SION

&'e re%ult% indicate t'at t'ere i% a 'u+e unta**ed mar/et )(r micr(in%urance in

Ind(re Di%trict. 7it' a**r(*riate deli1ery c'annel% ty*e% () c(1era+e *r(duct

%im*licity and ea%y *remium c(llecti(n t'i% 'u+e unt(uc'ed mar/et can be catered

by in%urer%. "lt'(u+' t'e current reac' () Qmicr(-in%urance9 i% limited t'e trend in

t'i% re%*ect %u++e%t% t'at t'e in%urance c(m*anie% b(t' *ublic and *ri1ate

(*eratin+ wit' c(mmercial c(n%iderati(n% can in%ure a %i+ni)icant *ercenta+e ()

t'e *((r. Ser1in+ l(w-inc(me *e(*le w'( can *ay t'e *remium certainly ma/e% a


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3

%(und c(mmercial %en%e t( in%urance *r(1ider%. &( t'at e0tent im*(%in+ %(cial and

rural (bli+ati(n% by in%urance re+ulat(r #I,D"$ i% 'el*in+ all in%urance c(m*anie%

a**reciate t'e 1a%t unta**ed *(tential in %er1in+ t'e l(wer end () t'e mar/et.

M(%t () re%*(ndent% are c(m*letely unaware () micr(in%urance *r(duct% but many

() t'em are aware () in%urance *r(duct%. Gi1en irre+ular and uncertain inc(me%tream () t'e *((r )le0ibility in *remium c(llecti(n i% needed t( e0tend t'e micr(-

in%urance net )ar and wide. MFI% are *layin+ a %i+ni)icant r(le in im*r(1in+ t'e

li1e% () *((r '(u%e'(ld%. Wuite a*art )r(m t'i% lin/in+ micr(-in%urance wit'

micr(-)inance ma/e% better %en%e a% it 'el*% in brin+in+ d(wn t'e c(%t () lendin+.

Inc(me () t'e )amily 'a% been )(und an im*(rtant )act(r 'i+'er inc(me increa%e%

*r(bability () *urc'a%in+ In%urance *r(duct. Ma0imum (r re%*(ndent% want% t(

in%ure t'eir c'ildren a% t'ey belie1e in%urance will 'el* t'em in %a1in+ m(ney a%

well a% *r(tecti(n )(r t'eir )uture. ;nd(wment *(licie% are m(%t li/ed byre%*(ndent% becau%e it +i1e% deat' bene)it% a% well a% %ur1i1al bene)it%. Ma0imum

() t'e re%*(ndent% belie1e% in +(1ernment ban/% and in%urance c(m*anie% a% t'ey

t'in/ t'at *ri1ate c(m*anie% c'ar+e% m(re t'an +(1ernment (wned c(m*anie% and

t'eir 'ard earned m(ney will be m(re %a)e in +(1ernment )irm% t'an *ri1ate

c(m*anie%. Many () t'em want t( *ay ,%. 4-2 )(r *remium (n daily (r wee/ly

ba%i% at t'eir %'(*% (r at '(me.

REERENCES

4$ 7iedmaier Martina -P)i%ter #"u+u%t 2$ ,e+ulati(n and %u*er1i%i(n ()

Micr(in%uranceE Di1i%i(n 4 Financial Sy%tem De1el(*ment.


64/67

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2$ !'at ,ame%' and ain Ni%'ant #uly 2$ Fact(r "))ectin+ t'e Demand

)(r =eat' In%urance in a Micr( In%urance Sc'emeE IIM "'medabad

7.P.N(.2-6 -2

3$ ,aji1an "nurad'a #"*ril 26$ ;n+a+in+ t'e *ri1ate %ect(r t( in%ure t'e

*((rE CN bu%ine%% )(cal *(int$ Gane%an Dr. S. and aya*ra/a%' Dr. S. #uly 26$ Micr( !anc a%%urance

M(del% )(r IndiaE ;le1ent' "nnual "P,I" @(n)erence at Nati(nal

@'en+c'i Cni1er%ity &ai*ei &aiwan

5$ ,(t' im Mac@(rd Mic'ael . and Aiber D(minic#26$ &'e land%ca*e

() micr(in%urance in 4 *((re%t c(untrie%E t'e micr(in%urance center AA@

$ It( Seir( and K(n( =i%a/i #26$ 7'y i% t'e ta/e-u* () micr(in%urance i%

%( l(wX ;1idence )r(m a 'ealt' in%urance %c'eme in IndiaE ;A

@la%%i)icati(n: F35 ?46$ Mac@(rd Mic'ael #Marc' 2$ i%i(n () t'e )uture () Micr(in%urance

and t'(u+'t% (n +ettin+ t'ereE Micr(in%urance n(teY.

$ Mali/a Mar/ and Kuria/(%e "net &. #2$ S(cial Fund Inn(1ati(n

n(te%E 7(rld !an/ 2 (lume 5 number 2

$ Pierr( ,ac'ele#2$ Micr(-in%urance O drr: c'allen+e% and

(**(rtunitie% in t'e c(nte0t () climate c'an+eE.

4$ ,a( K(li N. #2$ ,i%/ mana+ement a% a *illar in a+riculture and )((d

%ecurity in IndiaE F((d and a+riculture (r+ani8ati(n )(r t'e Cnited Nati(n%

F"?

44$ 7erner 7endy . #"u+u%t 2$ Micr(


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re%*(n%e% () t'e *e(*le. F(r t'e %a/e () %ucce%%)ul carryin+ (ut () re%earc' I am

'(*in+ y(ur +ener(u% %u**(rt.

Personal Profile

Name #(*ti(nal$: -

"+e: - .

Gender: - .

Number () )amily member%: - .

"nnual Inc(me #in ,%$ a$ Ae%% t'an 3 b$ 3-

c$ - d$ m(re t'an 'estionnaire

4$ D( y(u under%tand micr(in%uranceX

a$ H;S J

b$ N? J

2$ =a1e y(u e1er in1e%ted in any In%urance P(licyX

a$ H;S J

b$ N? J

3$ D( y(u t'in/ In%urance i%B will 'el*)ul t( y(uX

a$ H;S J

b$ N? J

c$ May be J

$ "re y(u intere%ted in in1e%tin+ micr(in%urance P(licyX

a$ H;S J

b$ N? J


66/67

3

5$ D(e% any in%urance a+ent 'a1e c(me t( y(u )(r y(ur in%uranceX

a$ H;S J

b$ N? J

$ I) an (**(rtunity c(me% in )r(nt () y(u t( in1e%t in In%urance w'ic' ty*e ()

(r+ani8ati(n y(u will c'((%eX

a$ Public %ect(r in%urance c(m*any J

b$ Pri1ate %ect(r in%urance c(m*any J

6$ D( y(u 'a1e any acc(unt in X

a$ !an/ J b$ P(%t ())ice J

c$ @((*erati1e %(ciety J

d$ ?t'er% J

$ In w'ic' ty*e () in%urance *(licy y(u willB 'a1e in1e%tB in1e%tedX

a$ &erm In%urance P(licy J

b$ ;nd(wment P(licy J

c$ Cli* P(licy J

d$ =ealt' In%urance P(licy J

$ =(w muc' *remium y(u are *ayin+Bwill *ay annually )(r y(ur in%urance

*(licyX

a$ Ae%% t'an 4 J

b$ 4-3 J

c$ 3-5 J

d$ M(re t'an 5 J


67/67

4$ 7'ic' m(de () *ayment will y(u *re)er )(r *remiumX

a$ "nnual J

b$ Wuarterly J

c$ Semi annually J

d$ M(nt'ly J

e$ 7ee/ly J

)$ Daily J

44$ 7'ere will y(u *re)er t( +i1e y(ur *remiumX

a$ "t y(ur d((r %te* J

b$ "t !an/ J

c$ "t P(%t ())ice J

a$ ?t'er *lace J +lease s+e)!f$

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