district rural development agency, andhra pradesh, india
TRANSCRIPT
District Rural Development Agency, Andhra Pradesh, India
District Rural Development Agency, Andhra Pradesh, India
Access to Insurance for the Poor by the
Poorof the Poor
District Rural Development Agency, Andhra Pradesh, India
Structure
• What is Indira Kranthi Patham
• Empowerment
• Core Beliefs
• Institutional model
• Activities
• Community Managed Life Insurance
What is Indira Kranthi Patham
• The fundamental building blocks of the strategy are
• Facilitate Empowerment
• Improve Opportunities
• It is a Community Driven Development project
Indira Kranthi Patham
• Increase Security
District Rural Development Agency, Andhra Pradesh, India
Indira Kranthi Patham is rural poverty alleviation project under implementation in the State of Andhra Pradesh (India) since October, 2000
Our Core beliefsIndira Kranthi Patham
Each poor family has the inherent potential and strong desire to come out of poverty
The poor require participatory institutions of their own to unleash this potential
There are committed people among the poor – Social Capital – who are willing to sacrifice their effort and time to help the other poor
There is a need for a sensitive support mechanism for nurturing the institutions of the poor and facilitate social mobilization
District Rural Development Agency, Andhra Pradesh, India
Social networks of the poor
V.O
150 - 200
SHGs
SHGs
SHGs
SHGs
SHGs
SHGs
MMS
4000 - 6000
• Thrift and credit activities
• Monitoring group performance
• Group level poverty reduction plans• Household inv plans
• E.C - 2 from each S.H.G, 5 Office bearers
• Strengthening of SHGs
• Arrange line of credit to the SHGs
• Social action
• Village development
• Marketing and food security
• Support activists
• E.C - 2 from each V.O, 5 Office bearers
• Support to VOs
• Secure linkage with Govt. Depts,
fin institutions, markets
• Auditing of the groups
• Micro Finance functions
10 - 15
ZS
910 MS
27350 VOs
6.9 million families
Activities
Indira Kranthi Patham
Access Commercial loans from Banks$266 million in 2004-05
$445 million in 2005-06
$778 million in 2006-07
District Rural Development Agency, Andhra Pradesh, India
Community Managed food security
Marketing support to Members
Social ActionHealth and Disability interventionCommunity Managed insurance
Designing Abhaya
Indira Kranthi Patham
Outsource risk while retaining control over policy administration
District Rural Development Agency, Andhra Pradesh, India
Minimize time gap between premium collection and start date of coverage
Do away with cumbersome claim documentation
Provide services at the doorsteps of the insured family
Establish Zilla Samakhya’s credibility with the Insurer and the insured
Comparative advantages
Indira Kranthi Patham
District Rural Development Agency, Andhra Pradesh, India
Insurer CBOs
• Provide risk cover
• Training of CBOs
• Claim Settlement
• Enrollment
• MIS
• Claim documentation
• Part settlement within 48 hours
Insurance and Social networks of the poor
• Member education
• Enrollment
• Collection of premium
• Reporting claims
• Facilitate documentation of claims
• Planning and Monitoring
• Training of VOs
• Claim docuementation
• Office bearer is member of Area Committee
• Tie up with an Insurance Company
• Nodal Agency for the scheme
• Maintain data base and Call Centre
• Issue Certificate of Insurance
• MIS
• Capacity building of its staff and community
• Pay out solatium within 48-72 hours
SHGs
SHGs
SHGs
SHGs
SHGs
SHGs
MMS
4000 - 6000
ZS
VO150-200
1,26,150Lives covered in 2006-07
• Natural Death … Rs.30,000 (USD 666.66)
• Accidental Death … Rs.75,000 (USD 1666.66)
• Total & permanent disability
due to accident … Rs.75,000 (USD 1666.66)
• Loss of One Eye/Leg/Hand
due to accident … Rs.37,500 (USD 833.33)
Abhaya
Sum Insured
Premium @ 65 (USD 1.4) per head collectedPremium @ 50 (USD 1.1) per head paid to LIC
District Rural Development Agency, Andhra Pradesh, India
Claim village Call Centre located in ZS
Area Committee
consisting of Community Members
ATM
Phone
Phone
• Area Committee completes claim documentation and sends to LIC via Abhaya Call
Center
Visit
Rs.5000/-
Visit
Claim Settlement ProcessAbhaya
District Rural Development Agency, Andhra Pradesh, India
• • Death Claims received - 603
• Claims accepted - 576
• Claims rejected - 27• Natural Death - 552
• Accidental Death - 24
• Disability Claims - 31
• Solatium paid (Rs.5000/-) - 569
• Claims sent to LIC - 473
• Claims settled by LIC - 440
• Claims settled by ZS - 440
Total lives : 126150Claims as on 08.04.07
District Rural Development Agency, Andhra Pradesh, India
Indira Kranthi Patham
CBOs can reach out faster and in a more credible manner
District Rural Development Agency, Andhra Pradesh, India
Enrollment in both years completed in 20 days
Low cost of administration Rs.6-8 per policy(USD 0.17)
Use of IT makes claim administration efficient and effective
CBOs retain control over the policy and hence improve the acceptance levels by the poor
Indira Kranthi Patham
“When community-based organizations are responsible for project design, management, and monitoring, costs per beneficiary are dramatically less, results are better, and benefits are more sustained”
District Rural Development Agency, Andhra Pradesh, India