Sa-dhan conference Sa-dhan conference on 17on 17thth March 2010 March 2010

at New Delhiat New Delhi

Key concern for Key concern for Social Security for PoorSocial Security for Poor

MFI can do micro credit, micro MFI can do micro credit, micro insurance (life health and asset) and insurance (life health and asset) and micro pension. All services under micro pension. All services under one roofone roof

Excluded poor can be included in Excluded poor can be included in main stream operationsmain stream operations

Response:Response:A. GovernmentA. Government Has more resources and Has more resources and

infrastructure, but lack of quality infrastructure, but lack of quality services to poor.services to poor.

Trying to design one scheme for Trying to design one scheme for whole country especially for poor.whole country especially for poor.

Public insurance companies are more Public insurance companies are more profit oriented.profit oriented.

Un willing to design new products Un willing to design new products suitable to poor alonesuitable to poor alone

Response:Response:B. PrivateB. Private

Business approach Business approach For profit motiveFor profit motive Social obligation?Social obligation? Moral hazardsMoral hazards

Response:Response:C. NGO/MFIC. NGO/MFI

Pro poor (focus)Pro poor (focus) Not for profit in natureNot for profit in nature Quality servicesQuality services Collaboration and co ordination with Collaboration and co ordination with

formal sectorformal sector

AdvantageAdvantage

Easy to educate and enroll poor in Easy to educate and enroll poor in social securitysocial security

Designing good products with Designing good products with reasonable costreasonable cost

Accessibility to membersAccessibility to members Enable to educate poor on health Enable to educate poor on health

educationeducation

Best PracticesBest Practices Need based product designed with Need based product designed with

UIIC company and running UIIC company and running successfully since from the year successfully since from the year 20002000

Full premium are paid by poorFull premium are paid by poor All transactions are thro banking All transactions are thro banking

channel (A/c Payee -Transparency)channel (A/c Payee -Transparency) Claim review committee consists of Claim review committee consists of

community leaders.community leaders.

Contd…Contd… Linking the poor with formal Linking the poor with formal

insurance companyinsurance company Net work with quality health care Net work with quality health care

hospitalshospitals Doing cashless mode for treatmentDoing cashless mode for treatment Addressing preventive, protective Addressing preventive, protective

promotional care to poor families.promotional care to poor families. Linked with micro credit for low cost Linked with micro credit for low cost

operationoperation

Collection and settlementCollection and settlement

A. Premium / Contribution:A. Premium / Contribution:

Member Member Surabhi Surabhi Shepherd Shepherd Insurance company / UTI MF.Insurance company / UTI MF.

B. Settlement:B. Settlement:1. Insurance company 1. Insurance company Shepherd Shepherd

Surabhi Surabhi bank account.bank account.

2. UTI MF 2. UTI MF Member’s Bank account. Member’s Bank account.

Operational constraintsOperational constraints Lack of awareness on micro insurance and Lack of awareness on micro insurance and

micro pension among the poormicro pension among the poor No support for operational costNo support for operational cost Delay in claim settlementDelay in claim settlement More or less working as a TPA (without More or less working as a TPA (without

cost)cost) No profit sharing or no claim bonus by No profit sharing or no claim bonus by

insurance companyinsurance company Public sector companies are not keen for Public sector companies are not keen for

rural policiesrural policies

Way forwardWay forward Govt. should give co payment for the Govt. should give co payment for the

insured or enrolled in micro pensioninsured or enrolled in micro pension Designing suitable products for poorDesigning suitable products for poor Re cognizing community mutual Re cognizing community mutual

model by IRDA.model by IRDA. NGO / MFI’s should come forward in NGO / MFI’s should come forward in

micro health insurance and micro micro health insurance and micro pension to poorpension to poor

Join Hands to Provide Safety Join Hands to Provide Safety Net to Poor Families Net to Poor Families

E-mail: ndfs.india@gmail.comE-mail: ndfs.india@gmail.com