Sa-dhan conference on 17 th March 2010 at New Delhi
Key concern for Social Security for Poor MFI can do micro credit, micro insurance (life health and asset) and micro pension. All services under one roof MFI can do micro credit, micro insurance (life health and asset) and micro pension. All services under one roof Excluded poor can be included in main stream operations Excluded poor can be included in main stream operations
Response: A. Government Has more resources and infrastructure, but lack of quality services to poor. Has more resources and infrastructure, but lack of quality services to poor. Trying to design one scheme for whole country especially for poor. Trying to design one scheme for whole country especially for poor. Public insurance companies are more profit oriented. Public insurance companies are more profit oriented. Un willing to design new products suitable to poor alone Un willing to design new products suitable to poor alone
Response: B. Private Business approach Business approach For profit motive For profit motive Social obligation? Social obligation? Moral hazards Moral hazards
Response: C. NGO/MFI Pro poor (focus) Pro poor (focus) Not for profit in nature Not for profit in nature Quality services Quality services Collaboration and co ordination with formal sector Collaboration and co ordination with formal sector
Advantage Easy to educate and enroll poor in social security Easy to educate and enroll poor in social security Designing good products with reasonable cost Designing good products with reasonable cost Accessibility to members Accessibility to members Enable to educate poor on health education Enable to educate poor on health education
Best Practices Need based product designed with UIIC company and running successfully since from the year 2000 Need based product designed with UIIC company and running successfully since from the year 2000 Full premium are paid by poor Full premium are paid by poor All transactions are thro banking channel (A/c Payee -Transparency) All transactions are thro banking channel (A/c Payee -Transparency) Claim review committee consists of community leaders. Claim review committee consists of community leaders.
Contd… Linking the poor with formal insurance company Linking the poor with formal insurance company Net work with quality health care hospitals Net work with quality health care hospitals Doing cashless mode for treatment Doing cashless mode for treatment Addressing preventive, protective promotional care to poor families. Addressing preventive, protective promotional care to poor families. Linked with micro credit for low cost operation Linked with micro credit for low cost operation
Collection and settlement A. Premium / Contribution: A. Premium / Contribution: Member Surabhi Shepherd Insurance company / UTI MF. B. Settlement: B. Settlement: 1. Insurance company Shepherd Surabhi bank account. 2. UTI MF Member’s Bank account.
Operational constraints Lack of awareness on micro insurance and micro pension among the poor Lack of awareness on micro insurance and micro pension among the poor No support for operational cost No support for operational cost Delay in claim settlement Delay in claim settlement More or less working as a TPA (without cost) More or less working as a TPA (without cost) No profit sharing or no claim bonus by insurance company No profit sharing or no claim bonus by insurance company Public sector companies are not keen for rural policies Public sector companies are not keen for rural policies
Way forward Govt. should give co payment for the insured or enrolled in micro pension Govt. should give co payment for the insured or enrolled in micro pension Designing suitable products for poor Designing suitable products for poor Re cognizing community mutual model by IRDA. Re cognizing community mutual model by IRDA. NGO / MFI’s should come forward in micro health insurance and micro pension to poor NGO / MFI’s should come forward in micro health insurance and micro pension to poor
Join Hands to Provide Safety Net to Poor Families