Team Name: The Three MusketeersInstitute: Indian Institute of Management, KozhikodeIIMK Campus P. O., Kozhikode, Kerala, India, PIN - 673 570ABHISHEK LAHIRI PGP/14/062 +919048174853 Abhishekl14@iimk.ac.in

Coverage needed by a rural person for:

Damage or uncertainty to crop

Life Insurance

Health Insurance

Cattle Insurance

Insurance against regular income

Accident Insurance

Calamity insurance – Floods, draught, etc.

The New proposed product is a bundling of all of the above

Coverage Access to diversified products and

services Infrastructure Financial management support Delivery model Language Barriers Financial illiteracy Policy requirements 90% of employment in India is in un-organized sector Transaction costs for small loans and deposits, using technology

OPERATIONS

PRIMARY CHANNELS

Account Opening Document Collection Educating People Public Relations as a representative

INSURANCE CORRESPONDENT

Tie –ups to exploit the vast distribution network

Exploit the goodwill and already established practice of forming and assistance

Help increase spread, reach and penetration

FMCG DISTRIBUTORS/ SELF HELP GROUPS

SHGs formalize the procedure for taking plans and help increase the penetration of insurance products in poorly connected areas

Self Help Groups and bank linkages facilitated the increase in sales of insurance products by approximately 2 times over the previous year (consistently over the last five years)

A local correspondent appointed by the Bank

Slowly take over the role of the Insurance Correspondent

Facilitate the operations of an extension counter in the long run

Help extend the reach and penetration of the products and services

VILLAGE CORRESPONDENT

SECONDARY CHANNELS

Features of the programme:Education and training of the staff and village occupants by the machine developerProvision for 9 hours battery backup and continuous charge through solar panels

Setup Kiosks supported by computerized machines (Vortex Gramateller Duo with BiometricScanner and Voice Feedback in local language)

Provision for:1. Premium payment2. Remittance3. Enquiry (FAQs)4. Sending micro-insurance applications/queries

BIOMETRIC IDENTIFICATION

Mobile services have greater penetration progressing at a faster pace than the required rate of growth of “banked penetration”

This technological edge can be leveraged successfully

The same has been successfully implemented in many countries as a tool to implement Financial Inclusion projects like WIZZIT Banking in South Africa, MPESA in Kenya and other instances in South East Asia Money transfer, premium payment

reminders or request for additional services

Query addressal via customer care and application for supplementary financial services and products

MOBILE ACCESS

Activities can be carried out through Customer-Care – Call Centers through security pins

This service would be available in local language so as to reach more number of people

This would help increase the penetration amongst the non-included, especially those who are illiterate

TOLL FREE NUMBERS

Strategic tie-ups with institutions like India Post etc. as a cash dispensing partner

It can be used as a gateway for as minimal transactions as Cash Withdrawal/ Cash Deposits

CASH DISPENSING PARTNER

LOANS/ MICROFINANCE SCHEMES – Tie-ups with Self Help Groups

FIXED DEPOSITS – Bank Tie-ups

NREGA

SAVINGS ACCOUNT – Bank Tie-ups

A/C TRANSFERS•REMMITANCES•PAYMENTS•RECIEPTS

UTILITY BILL PAYMENT

Bundling of products with Utility bills like Electricity, Telephone, etc.

Tie-ups with FMCG retailers and dealers for sale and penetration insurance

products

Provision of knowledge and assistance on crops and farming along with

products

Educating the rural inhabitants through:

Organizing Special Sessions at frequent intervals of time

Through the Panchayat

Broadcasting benefits on Television and radio

Create Opinion leaders to help in penetration of the product

No. of Tehsil

s/ Taluk

as

Population Population Division (Per cent in 2001)

1991 2001 Rural Urban

14 5,532,532

7,224,224

3,026,950 41.9

4240619 58.7

353 78,937,187

96,752,247

55,729,294

57.6

41022952

42.4

Taluka Name No. of Villages (sq. Km)

Headquarter

Pune City 184 Pune Khed 1,400 Rajgurunag

ar Ambegaon 1,043 Ambegaon Junnar 1,385 Junnar Shirur 1,557 Shirur Daund 1,290 Daund Indapur 1,468 Indapur Baramati 1,337 Baramati Purandhar 1,104 Sasvad Haveli 1,337 Pune Bhor 892 Bhor Velhe 497 Velhe Mulshi 1,039 Paud Maval 1,131 Wadgaon Total 15,642Total Villages (Population>2000)

424

Total Unnbanked Villages (Population>2000)

280

Choice of Pune district for pilot – 280 unbanked villages with population of over 2000

Proximity to PBoI’s regional office in Nashik added advantage

City of Pune would provide ideal location for supervising roll-out and performance

ITEM UNIT COST NUMBER TOTAL SMART CARD AND HARDWARE COST    Customized Computerized kiosks 175000 5 875000Smart Card 60 20000 1200000 Hand Held Device for transactions having (POS): • Card Reader • Biometric or finger print device • Connectivity • Printer For Muster Roll data collection from Job site

75000 5 375000

Hand Held Device with Mobile handset for connectivity

5000 5 25000

Laptop 30000 5 150000CONSUMABLES AND MAINTAINANCE      Printer Cartridge, Connectivity charges, Stationary.

5000 5000

IT      IT Infrastructure 500000   500000TRAINING      Training including preparation of training material

5000 5 25000

ADDITIONAL COST      Commission @ 2% of deposits   56000Salary 6000 5 30000TOTAL COST      Rupees thirty two lakh forty one thousand

3241000

Strategies to manage risksFollowing mechanisms may be used to manage social risks:

Informal individual mechanisms and self -help groups Informal and semi-formal cooperative systems Formal private systems State social security schemes

The Three MusketeersIndian Institute of Management, Kozhikode

ABHISHEK LAHIRI PGP/14/062 +919048174853Abhishekl14@iimk.ac.in