Page 22 - Insurance Times August 2021

3rd Prize Winner : Technical Paper Writing Contest 2020

TECHNOLOGY

CHANGING THE

LANDSCAPE OF

MICRO-

INSURANCE IN

INDIA

Background of Micro-insurance return for an affordable instalment of premiums whose sum
is relative to the probability and cost of the hazard. The
Definition: essential differentiation from conventional protection is in the
The term "Microinsurance" which is also commonly known focusing of low income individuals, which prompts
as "inclusive insurance" refers to the eco-system & different unmistakable qualities and destinations, including tending to
kinds approaches towards ensuring availability of insurance the specific dangers of low pay individuals, reasonableness
protection & services to the un-served, vulnerable & low- and comprehensiveness, effortlessness and lucidity in
income populations in emerging markets with appropriate documentation, open procedures, and building trust among
and affordable insurance products. target customers.

All the more absolutely, microinsurance is a method for Reasons why microinsurance is important for
ensuring low income individuals against explicit dangers in
developing nations:
About the author Low-income families, group and even small ventures are
especially defenceless against dangers, be it their financial/
Rakesh Arikathota health wellbeing or even property or business which are
Student, PGDM- Insurance commonly seen in developing nations. Since very few of these
BIMTECH. groups actually have access to efficient and effective way of
formal risk management and social protection mechanisms,
recuperating of the losses and recovering from the shock is
Prof. Manoj Kumar Pandey
Faculty at best difficult, and more often impossible.
BIMTECH
The key benefits of the insurance are not only limited to
health. It is also for the small-scale farmers and micro

22 The Insurance Times, August 2021