District Rural Development Agency, Andhra Pradesh, India.

District Rural Development Agency, Andhra Pradesh, India


Access to Insurance for the Poor by the

Poorof the Poor


Structure

• What is Indira Kranthi Patham

• Empowerment

• Core Beliefs

• Institutional model

• Activities

• Community Managed Life Insurance

What is Indira Kranthi Patham

• The fundamental building blocks of the strategy are

• Facilitate Empowerment

• Improve Opportunities

• It is a Community Driven Development project

Indira Kranthi Patham

• Increase Security


Indira Kranthi Patham is rural poverty alleviation project under implementation in the State of Andhra Pradesh (India) since October, 2000

Our Core beliefsIndira Kranthi Patham

Each poor family has the inherent potential and strong desire to come out of poverty

The poor require participatory institutions of their own to unleash this potential

There are committed people among the poor – Social Capital – who are willing to sacrifice their effort and time to help the other poor

There is a need for a sensitive support mechanism for nurturing the institutions of the poor and facilitate social mobilization


Social networks of the poor

V.O

150 - 200

SHGs

SHGs

SHGs

SHGs

SHGs

SHGs

MMS

4000 - 6000

• Thrift and credit activities

• Monitoring group performance

• Group level poverty reduction plans• Household inv plans

• E.C - 2 from each S.H.G, 5 Office bearers

• Strengthening of SHGs

• Arrange line of credit to the SHGs

• Social action

• Village development

• Marketing and food security

• Support activists

• E.C - 2 from each V.O, 5 Office bearers

• Support to VOs

• Secure linkage with Govt. Depts,

fin institutions, markets

• Auditing of the groups

• Micro Finance functions

10 - 15

ZS

910 MS

27350 VOs

6.9 million families

Activities


Access Commercial loans from Banks$266 million in 2004-05

$445 million in 2005-06

$778 million in 2006-07


Community Managed food security

Marketing support to Members

Social ActionHealth and Disability interventionCommunity Managed insurance

Designing Abhaya


Outsource risk while retaining control over policy administration


Minimize time gap between premium collection and start date of coverage

Do away with cumbersome claim documentation

Provide services at the doorsteps of the insured family

Establish Zilla Samakhya’s credibility with the Insurer and the insured

Comparative advantages



Insurer CBOs

• Provide risk cover

• Training of CBOs

• Claim Settlement

• Enrollment

• MIS

• Claim documentation

• Part settlement within 48 hours

Insurance and Social networks of the poor

• Member education

• Enrollment

• Collection of premium

• Reporting claims

• Facilitate documentation of claims

• Planning and Monitoring

• Training of VOs

• Claim docuementation

• Office bearer is member of Area Committee

• Tie up with an Insurance Company

• Nodal Agency for the scheme

• Maintain data base and Call Centre

• Issue Certificate of Insurance

• MIS

• Capacity building of its staff and community

• Pay out solatium within 48-72 hours

SHGs

SHGs

SHGs

SHGs

SHGs

SHGs

MMS

4000 - 6000

ZS

VO150-200

1,26,150Lives covered in 2006-07

• Natural Death … Rs.30,000 (USD 666.66)

• Accidental Death … Rs.75,000 (USD 1666.66)

• Total & permanent disability

due to accident … Rs.75,000 (USD 1666.66)

• Loss of One Eye/Leg/Hand

due to accident … Rs.37,500 (USD 833.33)

Abhaya

Sum Insured

Premium @ 65 (USD 1.4) per head collectedPremium @ 50 (USD 1.1) per head paid to LIC


Claim village Call Centre located in ZS

Area Committee

consisting of Community Members

ATM

Phone

Phone

• Area Committee completes claim documentation and sends to LIC via Abhaya Call

Center

Visit

Rs.5000/-

Visit

Claim Settlement ProcessAbhaya


• • Death Claims received - 603

• Claims accepted - 576

• Claims rejected - 27• Natural Death - 552

• Accidental Death - 24

• Disability Claims - 31

• Solatium paid (Rs.5000/-) - 569

• Claims sent to LIC - 473

• Claims settled by LIC - 440

• Claims settled by ZS - 440

Total lives : 126150Claims as on 08.04.07



CBOs can reach out faster and in a more credible manner


Enrollment in both years completed in 20 days

Low cost of administration Rs.6-8 per policy(USD 0.17)

Use of IT makes claim administration efficient and effective

CBOs retain control over the policy and hence improve the acceptance levels by the poor


“When community-based organizations are responsible for project design, management, and monitoring, costs per beneficiary are dramatically less, results are better, and benefits are more sustained”


District Rural Development Agency, Andhra Pradesh, India.

Documents

poor slide

india slide

india indira kranthi

insured slide

abhaya indira kranthi

state of andhra pradesh

poor family

poor v