NAGINDAS KHANDWALA COLLEGE

Course: Banking and insurance

Subject: environment and management of financial services Topic: Micro insurance

CONTENTS

Blah blah blah

Poonam 117
Ishita Gandhi 112

Paras 105 Srushti Bajaria 102

Dimple Dhabalia 108 Kinjal 114

Acknowledgement
WE WISH TO EXPRESS OUR HEARTFUL GRATITUDE TO SEVERAL INDIVIDUAL WHO HAVE INSPIRED AND SUPPORTED US CONSTANTLY, PERSONALY AND PROFESSIONALLY. WE WOLUD LIKE TO EXPRESS OUR SINCERE GRATITUDE TO OUR CLASS CO-ORDINATOR AND SUJECT TEACHER PROF. RUPALI JAIN FOR HER GUIDANCE. WE ARE ALSO GRATEFUL TO OUR CLASSMATES AND GROUP MEMBERS FOR THEIR CONSTANT SUPPORT.

Be insured and be safe.

What is insurance?
A risk management system under which risks of possible financial loss is guaranteed through a payment of certain amount called premium.

Micro insurance
It is the insurance which is provided to lower income people. Mostly available in developing and under developed countries. People coveredunder BPL (below poverty line).

The main features

Same benefits at low premium. Less money to invest. weekly to yearly premium payments. No medical exams. Enrollment with ID only. Simple procedures of claims. Indemnity payment received within 24 to 48 hours*.

PEOPLE COVERED
Agricultural labours, Beedi workers, Brick workers, Carpenters, Cobblers, Handicraft artisans, Handloom workers, Working women in hills, Lady tailors, Street wanders, Primary milk producers, Rikshaw pullers, Salt growers, Sugercane cutters,

Washerlady,etc.

Structure of micro insurance

structure of micro insurance

Micro level,

Meso level, Macro level.

Micro level
Includes policy holders & the micro insurers. Distributes the product & administers the policy. Can be single institution that carriers the risk. For example actuaries are necessary to assist the insurer in understanding the risk in relation to a product.

Meso level
Consist of the financial infrastructure needed to facilitate the functioning of micro level activities. Includes training facilitates for micro insurance staff & managers.

Macro level
Establishes the rules under which insurers can operate & supervises threats. Supervisory function legislation Plays a role in enhancing consumer protection.

Supply chain
Covered life
Policy holder Delivery channels

insurers reinsurers

The reinsurers
Insures the insurers against excessive losses. Generally does not play a large role in Micro insurance as the claims are of so small amount.

The insurer
Task is to carry risk and pay the claims. Insurer can be regulated or unregulated.

Unregulated insurers
Are often small or informal. SPANDANA in India-a very large micro insurance financial organization and Small Community Based (SCB) funeral insurance schemes in Africa are the examples.

Regulated insurers
Can either be mutual or commercial insurers. Mutual insurerslegally registered non-profit insurer run by professionals. Commercial insurersdistributes the profit amongst the shareholders.

Delivery channels
It is the individual or an organization that sells the insurance policies.
Religious institutions Cell phones Retailers Undertakers Lotteries Post offices Employee and trade unions Smart cards Banks MFIs and NGOs

Types of micro insurers

Commercial insurers NGO insurers Mutual insurers Community based organization and other informal insurers Parastatal insurers Takaful insurers

Commercial insurers Profit based insurers Includes professional staff Focus on life insurance
NGO insurers

No profit on loss based

Non governed insurers Provides largest number of health insurance

Mutual insurers
Non profit ,member based organization Regulated under non-insurance acts Provides third largest share in providing life insurance in Asia.

Community based organizations

Member based & member managed organization Non-professional staff Geographical boundries

Parastatal insurers
Owned by government of the country Weak management quality Have to follow government policies which may affect workings sometimes

Takaful insurance
Operated according to Islamic financial principles Do not charge interests Invests in non-interest bearing assets Must return at least a portion of earnings to the members.

products
Health insurance, Life insurance, Property insurance, Cattle insurance, Crop insurance, Hull insurance, Credit life, Saving life, Endowment life, etc.

Successful microinsurance products must be S.U.A.V.E.

simplepolicies, conditions, marketing,

Understoodrisk pooling, procedures, Accessiblepurchase, premium payments,
coverage
claims procedures

Valuablematches needs, fair price and

Efficientfor insurers, delivery channels,
policyholders.
coverage

Product list
Jeevan Mangal by LIC of India. Jeevan Madhur by LIC of India. Swayam Shakti Suraksh by Bajaj Allianz Life Insurance. Max-Vijay by Max New-York Life. Grameen shakti by SBI. Bima bachat and Super bachat yojna by HDFC life.

General facts & current issues India is among top 10 life insurance market in the c world today.
MI established in year 2005. Policies ranges 5,000 to 50,000. 24.8 lac of SHGs (self help groups) are involved in micro finance. Companies can earn about Rs. 1000 crores/year by providing innovative plans to rural poor.

Out of nearly 70,000 bank branches 32,000 are in rural areas only.
These bank branches helps in selling insurance products.

General facts & current issues Micro insuran ICICI Pru Life has joined hands
with Indian post which have over 1,50,000 branches allover India to sell insurance products.

MI has a potential to reach 1,00,000,000 people in next 10 years.

Grameen Yojna is highly successful in Bangladesh. Over 17.7 lac lives are covered under micro insurance therein.

General facts & current issues

In Shrilanka the micro insurance also covers funeral expenses. In Indonesia the micro insurance is sold through banks.

THANK YOU .!