Sa-Dhan Newsletter Volume 1 Issue 4
Micro-Insurance
TABLE 1: IIS Insurance Cover and Linkages 1992-2001
Year
Insurance cover
Linkages
1992 to 1993
Life insurance Others
LIC United India Insurance Company
1994 to 1997
Life insurance Health Accidental
LIC SEWA United India Insurance
death and Assets
Company
1998 to 2000
Life insurance Health and Assets
LIC SEWA New India Insurance
Accidental death
2001
Life insuranceOthers
LIC National Insurance Company
In 1994 SEWA shifted from UIC due to the rigid policy conditions and delayed claim settlement.
In 1998 shifted to NIA, which offered better premium rates.In 2001 SEWA had high claims ratio due
to floods and earthquakes. Risk was transferred to NIC, while SEWA retained claim settling authority
enabling it to provide timely service to its members
3 CLIENT BASE
Since the inception of the insurance services, SEWA's client base, which is a mix of rural and
urban, has expanded considerably (see Tables 2 and 3).
Table 2: Growth of Client Base
Year
Target group
Growth rate %
(SEWA members Gujarat State)
1990-91
25,911
1991-92
46,076
78
1992-93
38,136
-17
1993--94
42,280
11
1994-95
75,615
79
1995-96
15,8,152
109
1996-97
16,2,781
3
1997-98
15,9,204
-2
1998-99
14,2,810
-10
1999-2000
14,7,618
3
Table 3: Characteristics of the Client Base
Characteristic
Target group
Location
SEWA membership in Gujarat State: 34% urban 66% rural
Age
Mainly members aged from 30 to 45 years
Members income
Annual average for all claimants: Rs.18,396
Annual average for urban claimants: Rs. 20,844
Annual average for rural claimants: Rs. 13,236
Area of occupation
Services and labour: 60%, Home-based work: 34%
Hawkers, vendors and traders: 6%
Religion/ Caste
Predominantly Hindu, the largest population group, the majority among
the lower castes; Muslims and other smaller minority groups
Literacy
51.4% female illiteracy in Gujarat state
Housing
Kutcha:
urban: 4%, rural: 19%
Pucca:
urban: 80%, rural: 37%
Semi-Pucca:
urban: 16%, rural: 44%
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