Sa-Dhan Newsletter Volume 1 Issue 4

Micro-Insurance

Integrated Insurance Services to the Poor :

The Sewa Experience SEWA, ILO*

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largely related to maternity benefits while roles as

n response to a pressing demand from its members

workers and breadwinners are ignored. Women need

for covering some of their risks, SEWA initiated the

a complete, composite plan of insurance-life, health,

Integrated Social Security Scheme (ISS) in 1992, with

disability and unemployment, as well as asset

coverage including life, widowhood, personal accident,

insurance.  The  challenge  lay  in  providing

insurance for the member and her spouse, sickness,

comprehensive insurance coverage suited to the needs

maternity benefit and asset loss. It is a scheme of

of women workers, with maternity benefits being a

social insurance provided by SEWA for its members,

standard component.

in conjunction with the nationalized insurance

companies. The scheme was initially called " Samajik

The design of the ISS is entirely demand- driven,

Suraksha Yojana" (Social Security Scheme). Over the

which is reflective of SEWA's philosophy. The clients

years SEWA has both expanded and strengthened its

determine the design of the scheme. The bottom-up,

insurance services and explored partnerships with

participative approach is different and at times opposed

insurance to meet the growing needs of its members.

to the top-down centralist insurance provision through

either the central or state governments. The government

The salient features of the ISS are: (i) undertaken in

schemes for formal sector workers while representing

cooperation with Life Insurance Corporation of India

a need, do not reflect the changing needs or requests

(LIC) and National Insurance Corporation (NIC); (ii)

of workers of the informal economy to the extent that

based on common needs and common risks of the

SEWA does. SEWA has an extremely simple entry to

clients; (iii) mainly SEWA members are eligible; (iv)

the schemes for prospective members, straightforward

linked with deposit/ savings of the members; (v)

and  transparent  administrative  and  financial

tested and modified through client response; (vi)

mechanisms. The structure of the scheme is designed

demand-driven design;(vi) women- specific focus;(vii)

with mechanisms which respond swiftly to the

optional membership; (viii) based on the principles

requirements of the vast

of self- help and solidarity.

The article is compiled from ILO, 2000. Women

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APPROACH OF THE ISS

Organizing for Social Protection: The Self-employed

Women's Association's Integrated Insurance Scheme,

The approach of the ISS is based on ten fundamental

India, ILO, Geneva, and Shalini Sinha, 2002. Strength

questions regarding the well being of the clients.

in Solidarity, SEWA, Ahmedabad, by the Consultant

While each question is linked with a specific SEWA

Editor.

intervention, collectively, all the questions feed into

the creation of the design and prioritization of social

network of extension workers and community

insurance.  The ten fundamental questions are:

organizers working for SEWA and SEWA Bank.

1.

Have  more  members  obtained  more

EMPLOYMENT?

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HISTORY  OF

SEWA'S

INSURANCE

2.  Has their INCOME increased?

SERVICES

3.  Have they obtained FOOD and NUTRITION?

4.  Has their HEALTH been safeguarded?

Back in 1977, some SEWA members raised their

5.  Have they obtained CHILDCARE?

concerns with SEWA organizers and the SEWA

6.  Have they obtained or improved their HOUSING?

Executive Committee, that informal women workers

7.  Have their ASSETS increased?

did not have access to social protection. Many of

8.  Has the workers ORGANISATIONAL STRENGTH

SEWA's members lived, and still do, in slums on the

increased?

banks of the Sabarmati river in Ahmedbad and in rural

9.  Has the workers LEADERSHIP QUALITY been

areas, who could not afford to move to safer areas.

enhanced?

Consequently, there was a significant likelihood of the

10. Have  they  become  SELF-RELIANT  both

loss or destruction of assets, including work premises,

collectively and individually?

tools, materials, or living accommodation, through

Traditionally men have been the main policyholders

flooding and cyclones, fire, theft and civil unrest.

in insurance schemes with women and children

SEWA's insurance services began in 1978, with LIC

clubbed as dependents. Insurance for women is

linking up with the SEWA Bank for providing life

· The article is compiled from ILO, 2000. Women Organizing for Social Protection: The Self-employed Women's

Association's Integrated Insurance Scheme, India, ILO, Geneva, and Shalini Sinha, 2002. Strength in Solidarity, SEWA,

Ahmedabad, by the Consultant Editor.

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