INTERNATIONAL INSTITUTE OF PROFESSIONAL STUDIES

MAJOR RESEARCH PROJECT ON MICROINSURANCE: PERCEPTION AND NEED OF LOW INCOME GROUP (With special reference to Indore)

Guided by: Dr. Sujata Parwani Faculty IIPS

Submitted by: Neeraj Kumar IM-2K5-3 M!" #MS$ 5yr%

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CERTI ICATE
&'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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)EC*ARATION
I 'ereby declare t'at t'e *r(ject titled !MICROINS"RANCE# perception and need of lo$ inco%e &ro'p( i% a +enuine w(r/ d(ne by me and t'e in)(rmati(n c(llected i% aut'entic t( t'e be%t () my /n(wled+e. I ta/e )ull re%*(n%ibility )(r t'e (ri+inality () my w(r/ and declare t'at it i% n(t *irated in any manner w'ic' i% deemed ille+al by law. My +uide i% )ully e0em*ted )r(m any %uc' re%*(n%ibility a% menti(ned ab(1e. Neeraj Kumar IM-2K5-3 M!" #MS$ 5yr%

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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 222222222222222.. 3 Indu%try Pr()ile2222222222222...222222222...42 Maj(r *layer% in Micr(in%urance2222222222222222..45 I,D" #Micr(in%urance$ ,e+ulati(n%- 2 52222222222...2...2

Micr(in%urance *r(duct% in India22222..2222222222.26 1. *iterat're Re2ie$//////////////////////30 3. O45ecti2e of st'd6////////////./////////78 7. Research Methodolo&6///////////////.////79. )ata Anal6sis///////////////////////.73 0. indin& /////////////////////.////.90

:. Concl'sion//////////////////////.//.9; <. References/////////////////////////08 ;. Appendi=/////////////////////////0-

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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. 2 2$- re*(rt% t'at ab(ut (ne-)(urt' () '(%*itali8ed Indian% )all bel(w t'e *(1erty line a% a re%ult () t'eir %tay in '(%*ital%. &'e %ame %tudy re*(rt% t'at m(re t'an 5 *ercent () '(%*itali8ed *atient% ta/e l(an% (r %ell a%%et% t( *ay )(r '(%*itali8ati(n. 7'en a *((r9% )amily9% inc(me +enerat(r die%- w'en a c'ild () a *((r )amily i% '(%*itali8ed- (r '(me () a *((r )amily i% de%tr(y% by )l((d- eart':ua/e (r )ire. ;1ery illne%% e1ery accident (r e1ery natural di%a%ter lead% t( dee*er *(1erty t( a *((r )amily. &'at9% w'ere micr( in%urance c(me% in. Micr(in%urance i% t'e *r(tecti(n () l(w inc(me '(u%e'(ld% a+ain%t %*eci)ic *eril% in e0c'an+e )(r *remium *ayment% *r(*(rti(nate t( t'e li/eli'((d and c(%t () t'e ri%/ in1(l1ed. It i% %*eci)ically de%i+ned )(r t'e *r(tecti(n () l(w inc(me *e(*le wit' a))(rdable in%urance *r(duct% t( 'el* t'em c(*e wit' and rec(1er )r(m c(mm(n ri%/. " /ey %trate+y )(r en'ancin+ ec(n(mic de1el(*ment and alle1iatin+ *(1erty i% t( ma/e )inancial %y%tem% m(re inclu%i1e- )(r e0am*le by im*r(1in+ acce%% t( %a1in+% and credit %er1ice% )(r un- and under-%er1ed mar/et%. In *artP(1erty %tem% )r(m t'e )act t'at l(w-inc(me '(u%e'(ld% and mar/et% d( n(t 'a1e t'e %ame (**(rtunitie% t( )inance in1e%tment%- accumulate ca*ital (r *r(tect a%%et% #includin+ 'uman a%%et%$. &'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 re:uire% an intermediary 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 =i+' ri%/ e0*(%ureB 'i+' 1ulnerability ;%tabli%'ed in%urance 7ea/ in%urance culture culture Di%tributi(n S(ld by licen%ed S(ld by n(n traditi(nal m(del intermediarie% (r by intermediarie% t( client% in%urance c(m*anie% wit' little e0*erience () directly t( wealt'y client% in%urance (r c(m*anie% t'at under%tand in%urance P(licie% @(m*le0 *(licy Sim*le lan+ua+e d(cument% wit' many Few -i) any e0clu%i(n e0clu%i(n% Gr(u* *(licie% Premium G((d %tati%tical data Aittle 'i%t(rical data calculati(n Pricin+ ba%ed (n Gr(u* *ricin+ Indi1idual ri%/ .ery *rice %en%iti1e mar/et Premium M(nt'lyB:uarterlyB%emi (r Fre:uent (r irre+ular c(llecti(n annually c(llecti(n *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(nm(ral 'a8ard%)raud%$

Aimited eli+ibility Si+ni)icant d(cumentati(n re:uired Screenin+ %uc' a% medical te%t i% re:uired

@laim% 'andlin+

@(m*licated *r(ce%% ;0ten%i1e 1eri)icati(n d(cumentati(n

!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$ 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 $. "% a re%ult- increa%in+ly- micr(-)inance in%tituti(n% #MFI%$ 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 limitedanyw'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%e:uently- t'e rural mar/et i% c'aracteri8ed by limited and ina**r(*riate %er1ice%- inade:uate 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%- *remium calculati(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 Dl(w tic/etE bu%ine%%re:uirin+ 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 45m indi1idual%- (r a**r(0imately 2F () 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 %'aret'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+ec(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(mmunity ri%/-*((lin+ +r(u*%- and i% e%timated t( (nly c(m*ri%e 2 F () 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$. =ealt' c(1er *r(1ided in %uc' *ac/a+e% i% n(t c(m*re'en%i1e and it c(1er% (nly certain li%ted di%ea%e% )(r w'ic' '(%*itali8ati(n i% re:uired. "ccident c(1er i% a rider (n li)e in%urance and i% a )i0ed *ay(ut. India i% t'ere)(re )airly uni:ue in t'at c(m*ul%(ry in%urance c(1er e0tend% bey(nd li)e c(1er. It i% e%timated t'at (nly 4 F () micr(in%urance *(licie% are %(ld (n a 1(luntary ba%i%. ?) t'e%e- u* t( 3 F are end(wment *r(duct% rat'er t'an *ure ri%/ *r(duct%- indicatin+ a *re)erence am(n+ t'e l(winc(me *(*ulati(n )(r )inancial *r(duct% t'at *r(1ide %(me *ay(ut re+ardle%% () w'et'er a ri%/ e1ent 'a% (ccurred. 5$ 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 2 5 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 F () all micr(in%urance. In%teaddi%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 "IDMIG% 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%. &'e c((*erati1eG% I-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 re:uire in%urance c(ntract%. &'e%e are u%ually c(u*led wit' credit- )(r e0am*let( 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%uranceJ2K 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(delmicr(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'emeand %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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@(mmunity-ba%edBmutual m(del: &'e *(licy'(lder% (r client% are in c'ar+emana+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%.

39

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.$> t'e m(%t )re:uent micr(in%urance *r(duct% are: Ai)e micr(in%urance #and retirement %a1in+% *lan%$

39

=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 435M 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- 5I branc' ())ice%. AI@ 'a% 5.53 la/' acti1e a+ent% %*read (1er t'e c(untry.

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&'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$- ;.@. !a'rain. It 'a% al%( entered int( an a+reement wit' t'e Sun Ai)e #CK$ )(r mar/etin+ unit lin/ed li)e in%urance and *en%i(n *(licie% in C.K. In 4335-3M- AI@ 'ad a t(tal inc(me )r(m *remium and in1e%tment% () N 5 !illi(n w'ile GI@ rec(rded a net *remium () N 4.3 !illi(n. Durin+ t'e la%t 45 year%- AI@G% inc(me +rew at a 'ealt'y a1era+e () 4 *er cent a% a+ain%t t'e indu%tryG% M.6 *er cent +r(wt' in t'e re%t () "%ia #3.5 *er cent in ;ur(*e- 4.5 *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@G% claim% %ettlement rati( at 35 *er cent and GI@G% at 65 *er cent are 'i+'er t'an t'at () +l(bal a1era+e () 5 *er cent. @(m*(unded annual +r(wt' rate )(r Ai)e in%urance bu%ine%% 'a% been 43.22 *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 65F () 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 35F #2 2- 3$ t( I2 F# 2 5- 5$.
39

 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* 'ead:uartered 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"$. &'e c(m*any 'a% a netw(r/ () ab(ut 5Mad1i%(r%> a% well a% 6 banc a%%urance and 45 c(r*(rate a+ent tie-u*%. ?irla S'n *ife Ins'rance Co%pan6 *td. ;%tabli%'ed in 2 - !irla Sun Ai)e In%urance @(m*any Aimited #!SAI$ 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

39

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% 65F () t'e t(tal ca*ital and !NP Pariba% "%%urance t'e remainin+ 2MF. State !an/ () India enj(y% t'e lar+e%t ban/in+ )ranc'i%e in India. "l(n+ wit' it% M "%%(ciate !an/%- S!I Gr(u* 'a% t'e unri1alled %tren+t' () (1er 4Mbranc'e% acr(%% t'e c(untryar+uably t'e lar+e%t in t'e w(rld. S!I Ai)e 'a% a uni:ue 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$- a *art () t'e ING Gr(u* t'e w(rld9% lar+e%t )inancial %er1ice% c(r*(rati(n entered t'e *ri1ate li)e in%urance indu%try in India in Se*tember 2 4. =ead:uartered at !an+al(re- ING Ai)e India i% %ta))ed by (1er Mem*l(yee% and %er1ice% m(re t'an 4 la/'% cu%t(mer%. ING Ai)e India i% a j(int 1enture between ING Gr(u* #ING In%urance Internati(nal !...$ 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 M ING Ai)e "d1i%(r%- %*read acr(%% t'e c(untry. &'e c'annel 'a% branc'e% in 235 citie%- and 3MM %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%

39

!anca%%urance #ING .y%ya !an/$- ,e)erral !an/%- @(r*(rate "+ent%- !r(/er% and SMIN@;. AllianA ?a5a5 *ife Ins'rance Co%pan6 *td. !ajaj "llian8 Ai)e In%urance i% a uni(n between "llian8 S;- (ne () t'e lar+e%t In%urance @(m*any and !ajaj Fin%er1. "llian8 S; i% a leadin+ in%urance c(n+l(merate +l(bally and (ne () t'e lar+e%t a%%et mana+er% in t'e w(rldmana+in+ a%%et% w(rt' (1er a &rilli(n #?1er IN,. 55- @r(re%$. "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)eInc. and wa% inc(r*(rated a% a j(int 1enture between MetAi)e Internati(nal =(ldin+%- Inc.- &'e Pammu 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 M l(cati(n% t'r(u+' it% ban/ *artner% and c(m*any-(wned ())ice%. MetAi)e 'a% m(re t'an 5 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 CKG% lar+e%t in%urance +r(u*- w'(%e a%%(ciati(n wit' India date% bac/ t( 4I35. 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 unit39

lin/ed *r(duct% 7it' a wide di%tributi(n netw(r/ () 435 branc'e% and cl(%e t( 5 !anca%%urance *artner%'i*%- we are %*read acr(%% nearly 3t(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 Mt' February 2 5. 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*G% 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/ () M3 ())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 65l(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% 5IF e:uity w'ile Federal !an/ and F(rti% (wn 2MF e:uity eac'. =a1in+ %tarted in Marc' 2 I- in ju%t )i1e m(nt'%

39

() 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 PFIG% 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.C

!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+ Pa*ane%e @(m*any in t'e Ai)e In%urance mar/et- 'a1e )l(ated a P(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 () 54F by !?I- 2MF by Dai-ic'i Ai)e and 23F 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.

IR)A (Microins'rance) Re&'lationsC1889

,e+ulati(n% (n micr(-in%urance were ())icially +a8ette by t'e I,D" (n 3 N(1ember 2 5. &'e %alient )eature% () t'e re+ulati(n are *re%ented bel(w The re&'lation defines %icroBins'rance prod'cts

39

&'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$ Dmicr(-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$ Dmicr(-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 D)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'e in%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+'

39

%*eci)ied *er%(n%. Micr(-in%urance a+ent% enter int( a Ddeed () 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 re:uired )(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 () (rdinary in%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- ruleby-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%
39

#+$ ;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 F () *remium% *er year acc(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% < 45F () t'e 45F () t'e *remium %in+le *remium N(n-%in+le *remium *(licie% < 2 F () t'e *remium for all the years of the premium paying term &'e c(mmi%%i(n rate% *re%cribed ab(1e are m(re liberal t'an t'e M F #() a %in+le year9% *remium$ *ayable under (rdinary bu%ine%% in t'e ca%e () li)e in%urance and 4 F 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

39

in%urance bu%ine%% )(r t'i% *ur*(%e- and %ubject t( t'e *r(1i%i(n% () %ecti(n M5 .! () 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.
39

Co""!ss!on )a++!ng: MI c(mmi%%i(n% are ca**ed at 2 F *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 -35F in year (ne wit' 6F 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'e:ue. "t t'e %ame time 2 F may n(t be en(u+' t( incenti1i8e %ale%. It i% a c(mm(n #but ille+al under Secti(n 5I () 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 -5 F 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 () 42.3MF *ayable by t'e a+ent% i% a )urt'er *(int () di%%ati%)acti(n )(r t'e MI a+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%'$w'ic' mu%t be remitted wit'in 25 '(ur%. ,!I in 2 2- '(we1er- i%%ued re+ulati(n% %tatin+ t'at certain ty*e% () N!F@% #includin+ m(%t MFI%$ 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+ re:uirement% )(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
39

'(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% and t'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$'%ased organ!sat!ons: &'ere are re%tricti1e entry n(rm% )(r (r+ani8ati(n% t'at are e0*licitly licen%ed t( *r(1ide in%urance t( t'e +eneral *ublic. In%urance c(m*anie% need a lar+e am(unt () %tart-u* ca*ital () ,%4 cr(re t( +et a licen%e )r(m t'e I,D". &'i% entry n(rm i% a**licable )(r c(mmunity ba%ed in%urance a% well i) t'ey want t( underwrite ri%/. I,D" 'a% treated t'e e0i%tin+ ca%e% () in-'(u%e in%urance wit' beni+n ne+lect. ;%%entially- t'i% a**r(ac' i% dictated by t'e relati1ely limited e0*erience and l(w %u*er1i%(ry ca*acity () t'e I,D". @(m*ared t( t'e 1a%t number% () *e(*le in need () %(cial *r(tecti(n in India- t'e c(1era+e *r(1ided by b(t' )(rmal and- e1en m(re %(- by c(mmunity in%urance *r(+ramme% i% %( l(w t'at t'e r(le () re+ulati(n %eem% )airly limited. &'e creati(n () a tw(-tier %*ace w'ere t'e in%urance c(m*anie% are re+ulated and %u*er1i%ed and c(mmunity in%urance i% n(t i% de fa)to rec(+niti(n () t'i% )act. &'e I,D"9% a**r(ac' i% t'at it i% *(intle%% t( 'a1e re+ulati(n% t'at are n(t *r(*erly en)(rced a% l(n+ a% c(mmunity in%urance a+encie% *r(1ide c(1er t( a limited *(*ulati(n t'at i% clearly de)ined #eit'er +e(+ra*'ically (r %(cially (r t'r(u+' (t'er )(rm% () a%%(ciati(n$- 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 () 4M Puly 2 4- 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.

39

"% *er %ecti(n M5#34$- Din%urance au0iliary %er1iceE mean% any %er1ice *r(1ided by an actuary- an intermediary (r in%urance intermediary (r an in%urance a+ent in relati(n t( +eneral in%urance bu%ine%% and include% ri%/ a%%e%%ment- claim %ettlement- %ur1ey and l(%% a%%e%%ment. Q&a0able e1ent and %c(*e () %er1ice9 mean% any %er1ice *r(1ided t( a *(licy'(lder (r in%urer by an actuary (r intermediary (r in%urance intermediary (r in%urance a+ent- in relati(n t( t'e in%urance au0iliary %er1ice. &'e %er1ice *r(1ider% are in%urance a+ent%- in%urance %ur1ey(r% and l(%% adju%ter%actuarie% and in%urance c(n%ultant%. In t'e ca%e () in%urance %ur1ey(r% and l(%% adju%ter%- actuarie% and in%urance c(n%ultant%- t'e %er1ice i% *r(1ided mainly t( t'e in%urance c(m*anie% #in%urer$ 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% 42.3M F (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 () 44.33F #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 IN)IA

"% )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 45 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%:

39

Na%e of Ins'rer

Na%e of the Prod'ct

Prod'ct "IN No. 422N 33. 4 44MN 56. 4 44MN 5I. 4 44MN 53. 4

A@I@A *ife Ins. Co. India P2t. Grameen Sura/%'a *td. ?a5a5 AllianA *ife Ins'rance Co. !ajaj "llian8 Pana .i/a% H(jana *td !ajaj "llian8 Saral Sura/%'a H(jana !ajaj "llian8 "l* Ni1e%' H(jana ?irla S'n *ife Ins'rance Co. *td.

!irla Sun Ai)e In%urance !ima 4 3N 32. 4 Sura/%'a Su*er 4 3N 33. 4 !irla Sun Ai)e In%urance !ima D'an Sanc'ay 45 N 6. 4

)* Pra%erica *ife Ins'rance DAF Pramerica Sar1 Sura/%'a Co. *td ICICI Pr'dential *ife Ins'rance I@I@I Pru Sar1 Pana Sura/%'a Co. *td I)?I *td.

4 5N I4. 4 5. 4

ortis *ife Ins'rance Co. ID!I F(rti% Gr(u* Micr(%urance Plan 435N

IN, @6s6a *ife Ins'rance Co. ING .y%ya Saral Sura/%'a *td. *ife Ins'rance Corporation of AI@G% Pee1an Mad'ur India AI@G% Pee1an Man+al Met *ife India Met .i%'wa%

445N 32. 4 542N25 . 4 542N256. 4 446N 52. 4

Sahara India *ife Ins'rance Co. Sa'ara Sa'ay(+ #Micr( ;nd(wment 426N 4 . 4 *td. In%urance wit'(ut *r()it *lan$ S?I *ife Ins'rance Co. *td. S!I Ai)e Grameen S'a/ti S!I Ai)e Grameen Su*er Sura/%'a Shrira% *ife Ins'rance Co. *td. S'ri Sa'ay Sri Sa'ay #"P$ 444N 3I. 4 444N 33. 4 42IN 44. 4 42IN 42. 4

39

Star "nion Ins'rance Co

)aiBichi

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

452N

3. 4

TATA AI, *ife Ins'rance Co. "yu%'man H(jana *td. Na1/alyan H(jana Sam*((rn !ima H(jana &ata "IG Suman+al !ima H(jana

44 N 52. 4 44 N 53. 4 44 N 55. 4 44 N M4. 4

Bajaj Allianz Alp Nivesh !jana "n end(wment *lan wit' Ai)e c(1er and Maturity bene)it e:ual t( %um a%%ured R 1e%ted b(nu%.

Ai)e c(1er and Maturity bene)it e:ual 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 () 425F () t'e %in+le *remium *ayable (n %ur1i1al till t'e end () t'e *(licy term.

Ai)e @(1er. Maturity !ene)it () 425F() 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

39

"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 !"SIS 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 I @ () t'e Inc(me &a0 "ct- 43M4.

. 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( ,%.5 B-

Ma0imum Maturity a+e M5 year% " +race *eri(d () 4I 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 ,% 4 B- 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

39

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 e:ual t( 4 B- 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 Pana 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-4I year% - 55 year% MinBMa0 Sum "%%ured- ,%. 5-,%. 5 P(licy &erm -5 year% @(1er cea%in+ a+e -M year%

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

39

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 re:uirement% () 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 Grameen S'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 DFamilyE () t'e +r(u* member DPr(tecti(nE O it ())er% t( t'e DGr(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 4I year% a+e la%t birt'day. Ma0imum 5 year% a+e la%t birt'day. S'% ass'red# ,%.5B- t( ,%.5 B- #in multi*le% () 5$ a% *er c'(ice () Ma%ter P(licy'(lder. Pre%i'% freE'enc6# Hearly. ReE'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 55 day% a)ter t'e c(1er %tart date (r a)ter t'e re1i1al date < N( deat' claim will be acce*ted #inclu%i1e () accidental deat'$ F(rm 5Mt' day )r(m c(1er %tart date B re1i1al date < Sum a%%ured i% *ayable Ta.a AIG Li'e S&*an/al Bi*a !jana In t'i% *lan y(u 'a1e t( *ay *remium )(r 4 year% and y(u +et in%urance *r(tecti(n )(r 45 year%. ;nj(y t(tal +uaranteed return% () 42 F () t'e Tt(tal *(licy *remium at %*eci)ied inter1al% durin+ term () t'e *(licy. P(licy &erm : 45 year% Premium Payin+ term : 4 year%

@(1era+e Aimit% : Minimum Deat' !ene)it #Sum "%%ured$: ,%.5Ma0imum Deat' !ene)it #Sum "%%ured$: ,%.3 BPremium *ayment )re:uency : M(nt'ly- :uarterly- 'al) yearly O yearly

B-

39

Sur1i1al !ene)it: 7e %'all *ay y(u t'e %ur1i1al bene)it% a% bel(w- i) y(u 'a1e *aid all due *remium%.

Ta.a AIG Li'e Sa*p!!%n Bi*a !jana " l(w c(%t in%urance *lan w'ere t'e *(licy'(lder recei1e% all t'e *remium% *aid durin+ t'e *(licy term u*(n %ur1i1al until t'e term () t'e *(licy. Premium% are *ayable )(r (nly 4 year%- w'ile t'e c(1era+e i% u* t( 45 year%. P(licy &erm : 45 year% @(1era+e Aimit% : Minimum Deat' !ene)it #Sum "%%ured$: ,%.5BMa0imum Deat' !ene)it #Sum "%%ured$: ,%.5 B

Premium *ayment )re:uency : M(nt'ly- :uarterly- 'al) yearly O yearly Deat' !eni)it : Sum a%%ured i% *aid t( t'e *(licy'(lder9% n(minee Maturity bene)it: "t t'e end () t'e 45 year%- all t'e *remium% *aid will be returned t( t'e *(licy'(lder.

Ta.a AIG Li'e Sa*p!!%n Bi*a !jana " l(w c(%t in%urance *lan w'ere t'e *(licy'(lder recei1e% all t'e *remium% *aid durin+ t'e *(licy term u*(n %ur1i1al until t'e term () t'e *(licy. Premium% are *ayable )(r (nly 4 year%- w'ile t'e c(1era+e i% u* t( 45 year%. P(licy &erm: 45 year%

@(1era+e Aimit% : Minimum Deat' !ene)it #Sum "%%ured$: ,%.5Ma0imum Deat' !ene)it #Sum "%%ured$: ,%.5 BPremium *ayment )re:uency : M(nt'ly- :uarterly- 'al) yearly O yearly Deat' !eni)it : Sum a%%ured i% *aid t( t'e *(licy'(lder9% n(minee

B-

Maturity bene)it: "t t'e end () t'e 45 year%- all t'e *remium% *aid will be returned t( t'e *(licy'(lder.

39

Ta.a AIG Li'e Nav$al,an !jana " re+ular *remium *ayment- l(w c(%t term *lan )(r t'e rural adult% w'( %ee/ li)e in%urance *r(tecti(n wit'(ut any maturity bene)it.

P(licy &erm : 5 year% @(1era+e Aimit% : Minimum Deat' !ene)it #Sum "%%ured$: ,%.5Ma0imum Deat' !ene)it #Sum "%%ured$: ,%.5 BPremium *ayment )re:uency : M(nt'ly- :uarterly- 'al) yearly O yearly Deat' !eni)it : Sum a%%ured t( t'e *(licy'(lder9% n(minee Maturity bene)it : N(ne

B-

,ider: ?*ti(n t( attac' "ccident Deat' !ene)it ,ider )(r i%%ue a+e% 4I t( 55 year% at a n(minal e0tra c'ar+e.

IDBI F!%.is G%!&p Mi+%!s&%an+e Plan &'e )ir%t () it% /ind +r(u* t'at will be bene)ited by t'i% uni:ue *lan i% Sam'ita @(mmunity De1el(*ment Ser1ice%- ann(unced ())icially by ID!I F(rti% Ai)e In%urance @( Atd at a *re%% c(n)erence 'eld at !'(*al t(day. &'i% tie-u* will in%ure 43-35M *((r member% )(r a Sum "%%ured () (1er ,%. 6cr in t'e rural and urban area% () Mad'ya Prade%'. &'e *lan *r(1ide% a))(rdable li)e in%urance c(1er t( +r(u*% ())erin+ +reat 1alue t( Micr( Finance In%tituti(n%- Sel)-=el* Gr(u*% and NG?%. N(t (nly d(e% t'e *lan in%ure t'e li1e% () t'eir +r(u* member% and t'u% *r(1ide %ecurity t( t'e +r(u* member9% )amilie%- it can al%( be u%ed )(r *r(1idin+ *r(tecti(n )r(m l(an liabilitie% in t'e un)(rtunate e1ent () t'e deat' () t'e main bread-winner.

Aviva G%a*een S&%a$sha Grameen Sura/%'a i% a li)e in%urance *lan t'at 'el*% y(u *r(tect y(ur )amilyG% )uture. 7'ile t'ere can be n( c(m*en%ati(n )(r t'e l(%% () li)e- Grameen Sura/%'a
39

en%ure% t'at t'eir )inancial need% are met w'en %(met'in+ un)(rtunate 'a**en t( y(u. U ;ntry "+e: 4I t( 55 year% U P(licy &erm: 5 and 4 year% U Premium Payin+ &erm: 2 year% #*ayable in yearly m(de (nly$ U Sum "%%ured: ,%. 5t( ,%.5 #in multi*le% () ,%. 5(nly$ " +race *eri(d () (ne m(nt' i% all(wed )(r *ayment () *remium. LIC0s "eevan Ma-h&% DPee1an Mad'urE- i% a1ailable t( b(t' male O )emale wit'(ut any medical e0aminati(n and i% a %im*le %a1in+ related li)e in%urance *lan c(1erin+ indi1idual% in t'e a+e +r(u* () 4I t( M year%. Minimum %um a%%ured under t'e *lan i% ,%. 5 and ma0imum %um a%%ured i% ,%. 3 . M(de () *ayment () *remium can be e1en wee/lyB)(rtni+'tly in additi(n t( (t'er re+ular m(de% t( %uit t'e need% () *e(*le wit' l(w inc(me. Minimum *remium i% ,%. 25B- *er wee/- ,%. 5 B- *er )(rtni+'t- ,%. 4 B- *er m(nt' w'ic' i% e0*ected t( be well wit'in reac' () t'e tar+eted +r(u*. &'e term () *(licy ran+e% between 5 t( 45 year%. &'e *(licy- i) /e*t in )ull )(rce- i% entitled t( t'e %im*le re1er%i(nary b(nu%e% de*endin+ u*(n @(r*(rati(n9% e0*erience. "ccident bene)it i% al%( a**licable a% *er term% and c(nditi(n% () t'e *(licy. ")ter *remium% are *aid )(r 2 year%- "ut( @(1er )acility i.e.- c(ntinuance () c(1er e1en in ca%e () inability t( *ay *remium u* t( 2 year% )r(m t'e date () Fir%t Cn*aid *remium i% a1ailable t( ta/e care () c(ntin+encie% and uncertaintie% () inc(me. LIC0s "eevan Man/al "term a%%urance *lan wit' return () *remium% *aid (n maturity. &'e Micr( In%urance Plan DPee1an Man+alE launc'ed t(day i% a term a%%urance *lan wit' return () *remium (n maturity *r(1idin+ )(r a %um a%%ured #ri%/ c(1er$ ran+in+ )r(m minimum () ,%.4 B- t( ma0imum () ,%.5 B- wit' an (*ti(nal accident bene)it rider- t(+et'er *r(1idin+ )(r t(tal deat' bene)it e:ual t( d(uble t'e %um a%%ured- (n deat' due t( accident

39

Me. #ish1as
It i% a li)e in%urance *lan t'at *r(tect% y(u in ca%e () deat' at a n(minal c(%t w'en y(u %ur1i1e t'e term () t'e *(licy y(u +et bac/ u* t( 425F () *remium#in ca%e () c(1era+e term 4 year%$ Maturity bene)it: 44 F () t'e %in+le *remium *aid )(r a 5 year c(1era+e term 425F () t'e %in+le *remium *aid )(r a 5 year c(1era+e term U ;ntry "+e: 4I t( M year% U P(licy &erm: 5 (r 4 year% U Premium Payin+ &erm: 2 year% #*ayable in yearly m(de (nly$ U Sum "%%ured: ,%. 5t( ,%.5 #in multi*le% () ,%. 5(nly$ " +race *eri(d () (ne m(nt' i% all(wed )(r *ayment () *remium.

SUD Li'e Pa%aspa% S&%a$sha Plan &'e %c'eme 'a% been %*eci)ically de%i+ned )(r t'e wea/er %ecti(n% () t'e %(ciety and t'(%e )r(m t'e rural area%. &'e %c'eme c(1er% t'e +r(u*% () 2 and (r member%. &'e %c'eme i% t( *r(1ide li)e c(1er at l(w c(%t t( +r(u*% () *er%(n% en+a+ed in a c(mm(n ec(n(mic acti1ity li/e t'(%e )inanced by an NG?- MFI (r !an/% in rural (r urban area%. U ;ntry "+e: 4I t( 5 year% U Gr(u* %i8e : minimum-4 - ma0imum < n( limit U Premium Payin+ &erm: Minimum *remium- %in+le *remium-4M2.5 - annual *remium-33.5 Ma0imum *remium- %in+le *remium-4M25. - annual *remium-335. U Sum "%%ured: ,%. 5t( ,%.5 #in multi*le% () ,%. 5(nly$

39

MICROINS"RANCE AN) )E@*OPMENT

Micr(in%urance i% rec(+ni8ed a% a u%e)ul t((l in ec(n(mic de1el(*ment. "% many l(w-inc(me *e(*le d( n(t 'a1e acce%% t( ade:uate ri%/-mana+ement t((l%- t'ey are 1ulnerable t( )all bac/ int( *(1erty in time% () 'ard%'i*- )(r e0am*le w'en t'e breadwinner () t'e )amily die%- (r w'en 'i+' '(%*ital bill% )(rce )amilie% t( ta/e (ut l(an% wit' 'i+' intere%t rate%. Furt'erm(re- micr(in%urance ma/e% it *(%%ible )(r *e(*le t( ta/e m(re ri%/%. 7'en )armer% are in%ured a+ain%t a bad 'ar1e%t #re%ultin+ )r(m dr(u+'t$- t'ey are in a better *(%iti(n t( +r(w cr(*% w'ic' +i1e 'i+' yield% in +((d year%- and bad yield% in year () dr(u+'t. 7it'(ut t'e in%urance'(we1er- t'ey will be inclined t( d( t'e (**(%ite> %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%.

39

*ITERAT"RE RE@IEW
It i% e%timated t'at India 'a% 3 milli(n !PA *(*ulati(n (r M 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 I #IA? 2 5$. !ut unle%% t'e *e(*le )r(m t'i% %e+ment de1el(* c(n)idence (1er t'e in)ra%tructure )acilitie% and t'e a%%urity () t'e %u**ly c'ain mana+ement () in%urance %er1ice%t'i% will n(t be *ractically *(%%ible. Martina 7iedmaier-P)i%ter #2 5$ 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 D*r(1idedE t( t'e *((re%t$- and *ri1ately- mar/et-led in%urance %er1ice% #*r(1ided by a *ri1ate in%urer (r in)(rmally (r+ani8ed and Db(u+'tE by t'(%e w'( can a))(rd t'em$. &'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 () Dmicr(in%uranceE in indu%triali8ed c(untrie% c(uld al%( n(t be c(n%idered.

39

,ame%' !'at and Ni%'ant Pain #2 M$ 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(n number () 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. Paya*ra/a%' in ;le1ent' "nnual "P,I" @(n)erence #2 6$ 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+ndi%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% re:uired 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. Pim r(t'- Mic'ael P. Mac@(rd and D(minic Aiber #2 6$ *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( #2 6$ 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%

39

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( #Puly 2 I$ %aid t'at in India- a+ricultural ri%/% are e0acerbated by a 1ariety () )act(r%- ran+in+ )r(m weat'er 1ariability- )re:uent natural di%a%ter%uncertaintie% in yield% and *rice%- wea/ rural in)ra%tructure- im*er)ect mar/et% and inade:uate 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'ni:ue% 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 I$ 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
39

and e0*ert tec'nical in*ut i% re:uired 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*(intand t'e u%e () 1ari(u% (utreac' mec'ani%m t( reac' *((r '(u%e'(ld i% nece%%ary )r(m an e:uity *(int () 1iew. Mic'ael P Mac@(rd #Marc' 2 I$ %u++e%ted many in*ut% re:uired 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% re:uire% )inancial and 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 I$ +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 #I5F$ 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 F )(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 P. 7erner #"u+u%t 2 3$ 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(39

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%.

39

RESEARCH METHO)O*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.

39

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 )(r t'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 re:uired () 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& techniE'e Pud+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.
39

LIMITATION O- STUDY "% (nly IN)ORE dealt 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 malewit' 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 Ae%% t'an 3 3 -M M -3 m(re t'an 3

N#"%er of res+ondents 55 35 44

39

Maj(r *(rti(n () re%*(ndent% bel(n+% t( inc(me +r(u* 3 -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 N'%4er of fa%il6 %e%4er in their ho'seF O+t!on N#"%er of res+ondents 2 3 5 5 26 5 35 M 2I M(re t'an M M (ne earner in t'eir )amily.

39

M(%t () re%*(ndent% are married 'a1in+ (ne (r tw( c'ildren. 35F () re%*(ndent% 'a1e )amily () %i8e 5- 26F and 2IF () re%*(ndent% li1e in a )amily () 5 and %i0 re%*ecti1ely

)o 6o' 'nderstand %icroins'ranceF O+t!on He% N( 4 N#"%er of res+ondents

39

"% we can %ee )r(m ab(1e *ie c'art 4 aware () t'e Micr(in%urance.

F re%*(ndent% are t(tally un

Ha2e 6o' e2er in2ested in an6 Ins'rance polic6F O+t!on N#"%er of res+ondents He% 6 N( 33

39

?nly %e1en re%*(ndent% 'a1e in1e%ted in In%urance *(licy and re%t () 33F () re%*(ndent% 'a1e n(t in1e%ted in any in%urance *(licy.

)o 6o' thinG ins'rance is H $ill helpf'l to 6o'F O+t!on He% N( N#"%er of res+ondents 5M 42

39

May be

32

")ter e0*lainin+ t'em ab(ut bene)it% () in%urance 5MF () re%*(ndent% %ay% in%urance will be 'el*)ul )(r t'em and 32 F were in dilemma .
Are 6o' interested in in2estin& in Microins'ranceF O+t!on N#"%er of res+ondents He% 65 N( 2M

39

"% )r(m ab(1e )i+ure we can %ee t'at 65F () re%*(ndent% are intere%ted in in1e%tin+ in Micr(in%urance but 2MF 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 O+t!on N#"%er of res+ondents He% 53 N( 56

39

In %*ite () (nly 6 'ad in1e%ted in in%urance but 53 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 () 56F () 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&aniAation 6o' $ill chooseF O+t!on G(1ernment in%urance c(m*any Pri1ate %ect(r in%urance c(m*any N#"%er of res+ondents 35 M

39

"b(ut 35F () 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 O+t!on !an/ and P(%t ())ice !an/ and @((*erati1e %(ciety !an/ and ?t'er% N#"%er of res+ondents 22 52 25

39

"ll () re%*(ndent% 'a1e a ban/ acc(unt +enerally all () t'em 'a1e ban/ acc(unt i% PS!%- 52F '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. 22F () t'e re%*(ndent% 'a1e de*(%it acc(unt in P(%t-())ice.

In $hich t6pe of Ins'rance polic6 6o' $ill in2estH ha2e in2estedF O+t!ons &erm In%urance P(licy ;nd(wment P(licy Cli* P(licy =ealt' In%urance P(licy N#"%er of res+ondents 45 53 3 25

39

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&H$ill prefer ann'all6 for ins'ranceF O+t!on Ae%% t'an 4 4 3 -3 -5 N#"%er of res+ondents 5 35 5M 3

M(re t'an 5

39

"% we can %ee 5MF () re%*(ndent% are ready t( in1e%t daily 4 -2 ,%. )(r in1e%tment in in%urance- 35 F () re%*(ndent% want% t( *ay 4 t( 3 ,% )(r *remium- *remium am(unt m(re t'an 5 i% c'(%en by (nly 3 re%*(ndent%. Which %ode of pa6%ent $ill 6o' prefer for pre%i'%F O+t!on N#"%er of res+ondents "nnual 2 Wuarterly 42 Semi annually M M(nt'ly 3 7ee/ly 46 Daily 33

39

"% )r(m ab(1e +ra*' we can %ee t'at 33F () re%*(ndent% want t( *ay daily and 3 F want% t( *ay m(nt'ly *remium- 46 F () 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* 3M "t !an/ 5
"t P(%t ())ice ?t'er *lace

39

3MF () re%*(ndent% *re)er t( +i1e *remium at t'eir '(me (r at t'eir %'(*- (nly 5 re%*(ndent% *re)er% ban/ and n(ne () t'em *re)er *(%t ())ice (r any (t'er *lace.

IN)IN,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'e :ue%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 ())
39

2.

3.

5.

5.

M.

6.

I.

%ea%(n t'eir earnin+ decrea%e% %i+ni)icantly- t'(%e re%*(ndent% w'( were %alaried *e(*le +et m(nt'ly %alary ran+in+ )r(m 3 -5 *er m(nt'%. M(%t () re%*(ndent% are married 'a1in+ (ne (r tw( c'ildren. 35F () re%*(ndent% 'a1e )amily () %i8e 5- 26F and 2IF () re%*(ndent% li1e in a )amily () 5 and %i0 re%*ecti1ely. &'(%e )amilie% w'ic' 'a1e )i1e (r m(re t'an )i1e member%> t'ey +enerally li1e in c(mbined )amily and t'e%e )amilie% 'a1e inc(me le1el m(re t'an )i1e t'(u%and *er m(nt'. 35F () t'e re%*(ndent% 'a1e 5 )amily member- 2IF and 26F re%*(ndent% 'a1e M and 5 )amily member% re%*ecti1ely. M(%t () t'e re%*(ndent% 'a1e 'eard ab(ut in%urance but t'ey are t(tally unaware () Micr(in%urance- t'ey belie1e de*(%itin+ t'eir m(ney in ban/ (r *(%t-())ice i% m(re *r()itable t'an *uttin+ m(ney in in%urance- al%( ea%e () wit'drawin+ m(ney )r(m ban/ and *(%t-())ice ma/e% t'eir in1e%tment m(re li:uid. ?nly 6 re%*(ndent% 'a1e in1e%ted in in%urance *(licy- all () t'em bel(n+% t( inc(me le1el () m(re t'an 3 ,%. Per annum (ut () w'ic' 2 'a1e in1e%ted t'eir m(ney (nly )(r (ne and 3 year% (nly and t'ey %t(**ed +i1in+ *remium )(r t'eir in%urance due t( %(me *r(blem% and all () t'em in1e%ted in AI@9% *(licy. ")ter e0*lainin+ t'(%e ab(ut need and bene)it% () in%urance 5MF () re%*(ndent% want t( in1e%t in in%urance *(licy but lac/ () /n(wled+e and awarene%% ab(ut in%urance %t(* t'em )(r in1e%tin+. Many () t'em t(ld t'at t'ey d(n9t need in%urance a% t'ere i% 1ery l(w c'ance mi%% 'a**enin+ t( t'em. In %*ite () t'ey are m(re 1ulnerable t( ri%/%> ne+li+ence and i+n(rance () ri%/ )(r t'eir 'ealt' (r li)e al%( *re1ent t'em )(r in1e%tin+ in in%urance. "% maj(rity () re%*(ndent% are daily earner% and 65F are ready t( in1e%t in micr(in%urance *(licy- t'ey are ready t( +i1e daily 4 -2 ,% )(r t'eir in%urance i) %(me(ne c(llect% *remium )r(m t'eir %'(*%. In %*ite () (nly 6 'ad in1e%ted in in%urance but 53 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 () 56F () re%*(ndent% are n(t a**r(ac'ed by any in%urance a+ent% Ma0imum () re%*(ndent% c'((%e +(1ernment c(m*anie% rat'er t'an *ri1ate in%urance )irm% a% t'ey t'in/ t'ey are c'ea*er- reliable and ea%e in claimin+ in%urance m(ney.
39

3. "ll () re%*(ndent% 'a1e a ban/ acc(unt +enerally all () t'em 'a1e ban/ acc(unt i% PS!% a% minimum de*(%it re:uired in t'e%e ban/% are +enerally l(wer t'an *ri1ate ban/%- %ec(nd 'i+'e%t number- 52F '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. 22F () 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% 53F () re%*(ndent% (*ted end(wment *(licy a% a)ter maturity *eri(d t'ey +et bac/ in1e%ted am(unt. 25F () 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( (*t Cli* *(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. 5MF () 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 F () 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/lyma0imum () 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. 33F () re%*(ndent% want t( *ay daily and 3 F 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.

39

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
39

%(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 by re%*(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.

RE ERENCES
4$ 7iedmaier Martina -P)i%ter #"u+u%t 2 5$- D,e+ulati(n and %u*er1i%i(n () Micr(in%uranceE- Di1i%i(n 54 Financial Sy%tem De1el(*ment.

39

2$ !'at ,ame%' and Pain Ni%'ant #Puly 2 M$- DFact(r "))ectin+ t'e Demand )(r =eat' In%urance in a Micr( In%urance Sc'emeE IIM "'medabad7.P.N(.2 M- 6 - 2 3$ ,aji1an "nurad'a #"*ril 2 6$- D;n+a+in+ t'e *ri1ate %ect(r t( in%ure t'e *((rE - CN bu%ine%% )(cal *(int 5$ Gane%an Dr. S. and Paya*ra/a%' Dr. S. #Puly 2 6$- DMicr( !anc a%%urance M(del% )(r IndiaE ;le1ent' "nnual "P,I" @(n)erence at Nati(nal @'en+c'i Cni1er%ity- &ai*ei- &aiwan 5$ ,(t' Pim- Mac@(rd Mic'ael P. and Aiber D(minic#2 6$- D&'e land%ca*e () micr(in%urance in 4 *((re%t c(untrie%E t'e micr(in%urance center- AA@ M$ It( Seir( and K(n( =i%a/i #2 6$- D7'y i% t'e ta/e-u* () micr(in%urance i% %( l(wX ;1idence )r(m a 'ealt' in%urance %c'eme in IndiaE P;A @la%%i)icati(n: F35- ?43 6$ Mac@(rd Mic'ael P #Marc' 2 I$- D.i%i(n () t'e )uture () Micr(in%urance and t'(u+'t% (n +ettin+ t'ereE Micr(in%urance n(teY3. I$ Mali/a Mar/ and Kuria/(%e "net &. #2 I$- DS(cial Fund Inn(1ati(n n(te%E 7(rld !an/ 2 I .(lume 5 number 2 3$ Pierr( ,ac'ele#2 I$ - D 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$- D,i%/ mana+ement a% a *illar in a+riculture and )((d %ecurity in IndiaE- F((d and a+riculture (r+ani8ati(n )(r t'e Cnited Nati(n%F"? 44$ 7erner 7endy P. #"u+u%t 2 3$- DMicr( <in%urance in !an+lade%': ,i%/ Pr(tecti(n )(r t'e P((rXE Internati(nal @entre )(r Diarr'(eal di%ea%e re%earc'- !an+lade%'. IISN 4M M- 336

APPEN)II
Dear ,e%*(ndent%F(r t'e Partial )ul)illment () my M!" #MS$ 5yr% de+ree and c(ncerned )(r need and *erce*ti(n () in%urance am(n+ t'e under*ri1ile+ed *e(*leI am c(nductin+ a re%earc' (n Micr(in%urance t( +at'er nece%%ary and bene)icial

39

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$: - 22222222222222 "+e: - 222. Gender: - 2222. Number () )amily member%: - 2222222. "nnual Inc(me #in ,%$ a$ Ae%% t'an 3 c$ M J'estionnaire 4$ D( y(u under%tand micr(in%uranceX a$ H;S J K b$ N? J K 2$ =a1e y(u e1er in1e%ted in any In%urance P(licyX a$ H;S J K b$ N? J K 3$ D( y(u t'in/ In%urance i%B will 'el*)ul t( y(uX a$ H;S J K b$ N? J K c$ May be J K 5$ "re y(u intere%ted in in1e%tin+ micr(in%urance P(licyX a$ H;S J K b$ N? J K -3 b$ 3 -M

d$ m(re t'an 3

39

5$

D(e% any in%urance a+ent 'a1e c(me t( y(u )(r y(ur in%uranceX a$ H;S J K b$ N? J K

M$

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 K b$ Pri1ate %ect(r in%urance c(m*any J K

6$

D( y(u 'a1e any acc(unt in X a$ !an/ J K b$ P(%t ())ice J K c$ @((*erati1e %(ciety J K d$ ?t'er% J K

I$

In w'ic' ty*e () in%urance *(licy y(u willB 'a1e in1e%tB in1e%tedX a$ &erm In%urance P(licy J K b$ ;nd(wment P(licy J K c$ Cli* P(licy J K d$ =ealt' In%urance P(licy J K

3$

=(w muc' *remium y(u are *ayin+Bwill *ay annually )(r y(ur in%urance *(licyX a$ Ae%% t'an 4 b$ 4 c$ 3 -3 -5 J K J K J K J K

d$ M(re t'an 5

39

4 $

7'ic' m(de () *ayment will y(u *re)er )(r *remiumX a$ "nnual J K b$ Wuarterly J K c$ Semi annually J K d$ M(nt'ly J K e$ 7ee/ly J K )$ Daily J K

44$

7'ere will y(u *re)er t( +i1e y(ur *remiumX a$ "t y(ur d((r %te* J K b$ "t !an/ J K c$ "t P(%t ())ice J K
a$

?t'er *lace J K +lease s+e)!f$ 2222222

39