Beruflich Dokumente
Kultur Dokumente
PROJECT REPORT
ON
“MICRO INSURANCE’’
A Project Report submitted in partial fulfilment of the
requirements for the award of the degree to
IIPM
(INTERNATIONAL INSTITUTE OF PLANNING &
MANAGEMENT-MUMBAI)
Submitted By:
Dhiraj Jain
ENTREPRENEURSHIP-MICROFINANCE
BATCH:PGP/FW(09-11)
CLASS :F1
Submitted To:
ROHINI KELKAR
1
CONTENT
What is Microinsurance
Definitions of microinsurance
•
Microinsurance products
Microinsurance delivery
models
Microinsurance scheme
Microinsurance and
development
2
What is Microinsurance
3
Definitions of Microinsurance
4
evolved in the context of severe economic constraints,
political instability, and lack of good governance. The
common feature within all, is the active involvement of the
community in revenue collection, pooling, resource
allocation and, frequently, service provision.
4. Microinsurance is the use of insurance as an economic
instrument at the “micro” (i.e. smaller than national) level
of society. [4] This definition integrates the above
approaches into one comprehensive conceptual framework.
It was first published in 1999, pre-dating the other three
approaches, and has been noted to be the first recorded use
of the term “microinsurance”.[3] Under this definition,
decisions in microinsurance are made within each unit,
(rather than far away, at the level
of governments, companies, NGOs that offer support in
operations, etc.).
Insurance functions on the concept of risk pooling, and likewise,
regardless of its small unit size and its activities at the level of
single communities, so does microinsurance. Microinsurance
links multiple small units into larger structures, creating networks
that enhance both insurance functions (through broader risk
pools) and support structures for improved governance (i.e.
training, data banks, research facilities, access
to reinsurance etc.). This mechanism is conceived as an
autonomous enterprise, independent of permanent external
financial lifelines, and its main objective is to pool both risks and
resources of whole groups for the purpose of providing financial
protection to all members against the financial consequences of
mutually determined risks.
The last definition therefore, includes the critical features of the
previous three:
5
1. transactions are low-cost (and reflect members’
willingness to pay);
2. clients are essentially low-net-worth (but not
necessarily uniformly poor);
3. communities are involved in the important phases of
the process (such as package design and rationing of
benefits)
4. the essential role of the network of microinsurance
units is to enhance risk management of the members of the
entire pool of microinsurance units over and above what
each can do when operating as a stand-alone entity.
6
Microinsurance products
7
Microinsurance delivery models
9
Microinsurance scheme
10
Guarantee of coverage: a financial compensation for a
number of risks, in line with a pre-defined benefits package.
Microinsurance schemes may cover various risks (health, life,
etc.); the most frequent microinsurance products are:
Life microinsurance (and retirement savings plans)
Health microinsurance (hospitalization, primary health care,
maternity, etc.)
Disability microinsurance
Crop microinsurance
11
Microinsurance and development
12
Microinsurance regulation and supervision
13