social security scheme of iria (sss – iria) dr. suresh h. saboo vice president, iria

Social Security Scheme Social Security Scheme of IRIAof IRIA

(SSS – IRIA)(SSS – IRIA)

Dr. Suresh H. SabooDr. Suresh H. SabooVice President, IRIAVice President, IRIA

IntroductionIntroduction

Social and financial security is Social and financial security is needed by everyoneneeded by everyone

Many other medical organizations Many other medical organizations like FOGSI, IMA – running similar like FOGSI, IMA – running similar scheme very successfullyscheme very successfully

IRIA – A big and strong organizationIRIA – A big and strong organization Such scheme will increase our Such scheme will increase our

membersmembers

Salient featuresSalient features Scheme only for life membersScheme only for life members ONE TIME PREMIUMONE TIME PREMIUM Premium increases with agePremium increases with age Death Fraternity Contribution (DFC) – required Death Fraternity Contribution (DFC) – required

every year, depending on the number of deathsevery year, depending on the number of deaths 1000 members required in the first year to 1000 members required in the first year to

make it reasonably viablemake it reasonably viable No death benefit to any member in the first No death benefit to any member in the first

year of scheme (Accidents – excluded)year of scheme (Accidents – excluded) Rapid settlement of death claims (Within 7 Rapid settlement of death claims (Within 7

days)days)

Portfolio managementPortfolio management

The money will be invested in The money will be invested in

Proposed Proposed schemescheme

Premium table for becoming a member of the Premium table for becoming a member of the schemescheme

Age Age groupgroup

Reg. Reg. feesfees

Basic Basic premiupremiumm

TotalTotal

<30<30 500500 35003500 40004000

31-4031-40 500500 45004500 50005000

41-5041-50 500500 55005500 60006000

51-5551-55 500500 60006000 65006500

56-6056-60 500500 65006500 70007000

61-6561-65 500500 75007500 80008000

66-7066-70 500500 85008500 90009000

Projected figures in first year of Projected figures in first year of schemescheme

Approximate interest Approximate interest Total collected amountTotal collected amount ::

56,00,00056,00,000 InterestInterest @ 6%@ 6% : : 3,36,0003,36,000

Death claimsDeath claims (Assuming 2 accidental deaths)(Assuming 2 accidental deaths)

1,25,000 1,25,000 2 2 :: 2,50,0002,50,000

Balance sheet Balance sheet (at the end of first year)(at the end of first year)

Second year of schemeSecond year of scheme

Considering 300 new members



DFC (Assuming 2 accidental deaths)DFC (Assuming 2 accidental deaths)

Death claims in Second year Death claims in Second year

Death claimsDeath claims

1,25,000 1,25,000 7 7 :: 8,75,0008,75,000

Balance sheet Balance sheet (at the end of second year)(at the end of second year)

Third year of schemeThird year of scheme




DFC (For 7 deaths in previous year)DFC (For 7 deaths in previous year)

Death claims in Third year Death claims in Third year


1,50,000 1,50,000 10 10 :: 15,00,00015,00,000

Balance sheet Balance sheet (at the end of Third year)(at the end of Third year)

Fourth year of schemeFourth year of scheme


Death claims in Fourth year Death claims in Fourth year


1,75,000 1,75,000 6 6 :: 10,50,00010,50,000

Balance sheet Balance sheet (at the end of Fourth year)(at the end of Fourth year)

Fifth year of schemeFifth year of scheme


Death claims in Fourth year Death claims in Fourth year


2,00,000 2,00,000 7 7 :: 14,00,00014,00,000

Balance sheet Balance sheet (at the end of Fifth year)(at the end of Fifth year)

Option of merging with LIC Option of merging with LIC group insurancegroup insurance

Insure member for a pre-decided amount say Insure member for a pre-decided amount say 1 or 1.5 lac1 or 1.5 lac

Premium rate – Age of the personPremium rate – Age of the person Upto 40 yrs of age – Rs. 350/ yearUpto 40 yrs of age – Rs. 350/ year > 45 – Rs. 530/ year > 45 – Rs. 530/ year The scheme is administered through The scheme is administered through

associationassociation Association is the master policy holderAssociation is the master policy holder Premium payment and settlement of claims Premium payment and settlement of claims

through association through association

Implementation of LIC group Implementation of LIC group insuranceinsurance

Association provides list of members Association provides list of members with date of birthwith date of birth

LIC will inform the premium amountLIC will inform the premium amount Association will fill up the form and Association will fill up the form and

the master policy is issuedthe master policy is issued Scheme is renewable every year Scheme is renewable every year

SummarySummary

NSS is viable, needs systematic planning NSS is viable, needs systematic planning and implementationand implementation

1000 members – realistic target1000 members – realistic target Office bearers should not be changed for Office bearers should not be changed for

first five yearsfirst five years We have benefit of good office structureWe have benefit of good office structure LIC group insurance – another optionLIC group insurance – another option Fund investment in proper portfolios is Fund investment in proper portfolios is

crucialcrucial

social security scheme of iria (sss – iria) dr. suresh h. saboo vice president, iria

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