MICRO insurance
In particular, low-income people live in risky environments, vulnerable to numerous perils—illness, accidental death and disability, loss of property due to theft or fire, loss of agricultural products, and disasters of both the natural and manmade varieties. They are also the least able to cope when a crisis does occur. For example, a large number of people were adversely affected by Tsunami in 2004 loosing human lives, property, businesses, animal, fishing gears etc., and except in seldom cases a large majority had to depend merely on relief assistance given on short term basis.
WDF deliberated on the extreme necessity of insurance for it`s members decided to follow different approach to be relevant for the low-income market and viable for providers. The products generally available from insurers are not designed to meet the specific characteristics of the working poor, particularly the irregular cash flows of households with bread winners in the informal economy : Compensation worth SLR 7.2 million was released for 2,429 policy holders. Following policies of insurance were followed by WDF for it`s members. |
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Three packages of insurance are introduced by WDF as to operate by it`s own, are as follows; |
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Scheme 1 : Micro insurance to cover loan losses |
In 2013, 350 members benefitted when they became helpless due to loan losses having received Rs. 6.14 million worth compensation against which has relieved borrowers from the crucial outcome of loan burdens. Also revealed that such measures are highly appreciated by the poor. The criterion such as ; small premium, coverage of funeral expenses of member families, receiving assistance on permanent disability , to cover losses occurred due to natural disasters and burglaries etc., are preferred expectations of the majority of poor which had been evolved on the insurance policies introduced by WDF. Altogether 779 borrowers received compensation of SLR 3.8 M.
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Scheme 2 : Divisarana’ Micro insurance to address accidents, hospitalization and several other upheavals. |
At the beginning of 2015 the client base of Divisarana insurance policy was proliferated by exceeding 14,000. Amidst of a considerable number of commercially driven insurance modalities the secret of rapid growth of this scheme is the self understanding of members based on clear evidence that how the low income families suffer when they are affected due to unexpected tragedies and how they overcome such calamities through the amounts compensated by Janasakthi. Recompenses are made for death, hospitalization and surgeries and the total paid as at beginning of 2015 was SLR 2.6 million being compensation paid for 976 members.
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Scheme 3 : Insurance based on the Saved funds |
This scheme too was in successful operation of which the facilities made available were to insure the saved funds. Those who managed to save amounts exceeding SLR. 5,000/=, individually, are entitled for the benefits against this policy. SLR. 1,000 to 1,500 is paid in case of a death of a family member or the insurance and no premiums are charged from the policy holders. So far 674 savers received compensation of SLR 0.85 million.
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