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that some companies also offer permanent disability Under this model the MFI [Micro-Finance Institution]
benefits.
2. Endowment/ Savings/ Pension
Under this category the insurance company offers life
protection, both on survival and death. Pension can
also be built into the product. Some Insurers offer
accident benefit and permanent disability benefit
during the premium paying term only, or for the full
term. The sum is capped between Rs 30,000 and Rs
50,000. A majority of the insurers offer policies under
the non-medical scheme.
3. Health
This scheme covers Disability, hospitalisation loss, etc.
This scheme offers a fixed sum in case of the
hospitalisation (Pre, during and Post). The details of
claim are as follows
Benefits Amount claimed
Hospitalisation Expenses Rs.150 per day
Consultant Fee up to Rs. 4500 per
hospitalisation
Diagnostic Expenses Rs. 4500 per hospitalisation
Transportation Expenses Rs. 350 per hospitalisation.
4. Property
This policy gives protection against key risks faced by
low-income households like package cover and crop
insurance product. This policy also cover loss to
livestock due to death, disease and accident dwellings
5. Personal Accident
This scheme is applicable to Low income groups, Kissan
Credit card holders, girl child parents and married
ladies. This scheme offers Death, Permanent Total
Disablement, Total and irrecoverable loss of limb or eye
sight. It also offers medical expenses facilities during, 3. Full service model:
pre and post hospitalization.
Microinsurance Delivery Model
One of the greatest challenges for micro insurance is the
actual delivery to clients. There are four main methods for
offering micro insurance. Each of these models has its own
advantages and disadvantages.
1. Partner-agent model:
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Life Insurance Today June 2015
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acts as the agent, marketing and selling the product
to its existing clientele through a distribution network
which has already established for its other financial
services. The insurance provider acts as the partner for
providing actuarial, financial, and claims-processing
expertise, and the capital required for initial
investments and reserves as required by law. The
insurer also absorbs the risk. The clients can access an
insurance product which is managed by a professional
and it provides better "return on investment" than with
an informal means of insurance.
In simple this model is based on the collaboration
between a partner agency (usually a formal insurance
company) and a dealing agent that provides services
to low-income clients. The company (the partner)
feeds the financial resources, sets the premiums,
monitors the insurance claims and ensures that legal
obligations are observed. The agent ensures that the
risks, resources and knowledge are transferred and
shared rationally between the formal and informal
sectors.
2. The mutualised insurance or community-based
organisations model
Credit and savings cooperatives often offer borrower's
insurance contracts that cover the balance of a loan
to be paid back. Moreover, they offer savings in the
form of life insurance, to stimulate saving habits. Some
also sell Housing, Funeral, Invalidity and Disease
insurance, and even Accident policies, yet more rarely.
These products come in addition to mainstream credit
and savings services.
In the countries of Sub-Saharan Africa, many
mutualised health insurances have also been created
on the basis of a voluntary membership. In exchange
for the premiums they send to a fund, policyholders are
entitled to certain benefits.
In this model the MFI provides insurance services in
charge of everything. The MFI is taking care of design
and delivery of products to the clients. It also
undertook sales, services and claims assessment. The
MFI works with external healthcare providers to
provide the services. The insurers (MFIs) are wholly
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