|
|
 |
|
|
|
| |
| |
TOLL FREE - 1800 103 5499
CALL US - 0124-4285499
SMS "CLAIM" to 56677
---------------------------------
HAVE US CONTACT YOU |
|
|
|
|
 |
 |
 |
About Us >> Micro Insurance - The Iffco-Tokio way |
The focus of Micro insurance is on the low income segment ignored by mainstream commercial & social insurance schemes. It may be described as a "back to basics" campaign. It is characterised by low premium and low coverage limits. Each policy generates a "micro" financial transaction. However, the risks are not "micro" to the households which experience them. Low Income people are exposed to numerous perils. They live in continuous uncertainty about whether and when a loss might occur. Poverty and vulnerability reinforce each other in a viciously escalating downward spiral.
Developing countries lack an effective social protection mechanism to systematically reach the vast majority of the population which is engaged in the informal economy. By offering cost-effective risk-hedging instruments, micro insurance strives to provide some coverage to the excluded. It is thus integral to any poverty reduction strategy.
By linking multiple small units into larger structures, micro insurance pools the risk and creates networks that enable better governance. This gives easy access to reinsurance and helps to generate data which can help in product design and development.
India will merit a special mention in the history of microinsurance. It became the first country to have a special regulation on the subject. IRDA made it mandatory for all formal insurance companies to extend their activities to rural & social sectors. As former IRDA Chairmnn, Mr C.S. Rao put it succinctly, "IRDA made serving the poor compulsory for insurers in India."
Iffco Tokio's micro-insurance initiatives are driven by the vision of its parent company IFFCO which seeks to improve the quality of life of the Indian farmer. Rather than merely downscaling existing products, it has leveraged IFFCO's experience of the rural market to craft a product basket designed specifically for the agricultural sector.
Some of the products are : -
Janta Bima Yojna- This is a comprehensive customized policy offering a personal accident cover to the insured and his spouse on a floater basis and a fire & allied perils and burglary cover to the building(house) and its contents. Three options of Sum insured ( ranging from Rs. 12,500 to Rs 30,000 for the property section and Rs. 15,000 TO Rs .50,000 for the personal accident section and premium payable ( ranging from Rs 100 to Rs 250), are offered. The policy can be taken on an individual or group basis.
Jan Swasthya Bima Yojna- This group health policy covers hospitalization expenses, in case hospitalization is necessitated following an accident or disease. The Sum insured ranges from Rs. 15000 to Rs. 30000 in multiples of Rs. 5000.
Jan Kalyan Bima – This provides comprehensive protection against loss or damage to the property insured by Fire and allied perils and burglary & house breaking. It also covers risks of Personal accident and 10 Critical illnesses. The sum assured is Rs 50,000
Jan Suraksha Bima- This is a Personal accident policy for Self Help Groups providing coverage against death, permanent total disablement, permanent partial disablement and temporary total disablement resulting out of an accident.
Mahila Suraksha Bima Yojna- The coverage is same as that of Jan Suraksha Bima Yojna and is meant for women Self Help Groups only.
Pashudhan Bima Yojna- is a cattle insurance policy applicable to indigenous, cross breeds and exotic breeds of cattle, covering the death of the animal due to accident, disease, surgical operations , strike , riot and civil commotion (SRCC), terrorism and earthquake.
Barish bima Yojna (BBY) - This is an Index based Weather Insurance Product for Kharif (monsoon) crops like Jowar, paddy, soyabean, cotton etc. which provides cover for financial losses arising due to deficient or excess rainfall. The cover is operative during the monsoon months i.e. July to September/ June to September/ July to October. The maximum Sum Insured under the micro version of this policy is Rs. 30000/-.
Mausam Bima Yojna (MBY) - The policy provides cover for Rabi crops like Wheat, Mustard, Potato etc. against financial losses arising due to adverse weather perils- Temperature, Humidity and Unseasonal Rainfall during the Rabi season. The maximum Sum Insured under the micro version of this policy is Rs. 30000/-.
Micro insurance is still in its infancy. Problems include high transaction costs, inappropriate distribution systems, product design issues especially related to the irregular cash flows of the low income market and lack of data to interpret the vulnerabilities of the poor. The challenge is to promote an insurance culture in the low income group and simultaneously develop an appropriate business model that creates a profitable & sustainable market at the "bottom of the pyramid." This will help to realise the immense potential of the vast, underserved market of low income households.
|
|
 |
 |
|
