Sa-Dhan Newsletter Volume 1 Issue 4

Micro-Insurance

4 INSURANCE SCHEMES UNDER ISS/ VIMO SEWA

From 2001, a new social insurance scheme with three packages was launched with members having the choice

of opting for any package of varying maximum limits of reimbursement. Each scheme offers limited insurance

cover for spouse on payment of an additional premium (see Table 4).

Table 4: Insurance Schemes of ISS/Vimo SEWA

Risk Covered

Scheme I

Scheme II

Scheme III

Member's Insurance

Annual pre

Annual pre

Annual pre

Rs. 75F.D. Rs. 700

Rs. 180F.D. Rs. 1800

Rs. 360F.D. Rs. 3600

Natural Death

Rs. 3,000

Rs. 5,000

Rs. 10,000

Accidental Death

Rs. 40,000

Rs. 40,000

Rs. 40,000

Acc. Death of Husband

Rs. 15,000

Rs. 15,000

Rs. 15,000

Hospitalisation

Up to Rs 1,300

Up to Rs 4,500

Up to Rs 9,000

House & Assets Insurance

Up to Rs 5,000

Up to Rs 10,000

Up to Rs 20,000

Husband's Insurance

Annual pre 45F.D. 450

Annual pre 135F.D. 1350

Annual pre 300F.D. 3000

Natural Death

Rs. 3000

Rs. 5,000

Rs. 10,000

Accidental Death

Rs. 25,000

Rs. 25,000

Rs. 25,000

Hospitalisation

Rs. 1,300

Rs. 4,500

Rs. 9,000

Note: F.D. means fixed deposit linked insurance. Interest from this fixed deposit is directly transferred

to the insurance account.  Pre means premium.

The maternity benefit entails a lump sum payment

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INSURANCE PRODUCTS

(Rs. 300/-) at the time of childbirth to assist the

member in case of extraordinary expenses and loss

1.  Life Insurance

Since 1992, SEWA with LIC has been offering life

of income. The benefit is available only for FD linked

insurance coverage for natural death and accidental

insurance members.

death (of members only) through group insurance

Coverage limits are up to Rs 10,000/- for life and Rs

4. Asset Protection

25,000/- for accidental death. The LIC policy is

Asset protection covers losses (home and work tools)

supported by a 50 per cent premium subsidy under

suffered due to natural disasters such as fire and

the direction of the Government of India.

flood, and human disasters such as riots. Coverage

limits are between Rs. 5,000-20,000/- through a

special package insurance scheme developed for

2.  Accidental Death

Accidental Death is offered through a group insurance

SEWA by NIC. The home based workers are protected

scheme of the NIC covering the members and their

under this scheme. Asset protection is largely carried

husbands. Coverage limit is Rs 15,000/- each for the

out by the SEWA Bank in which has also provided

member and her husband.

a wider base for the scheme. The Mahila Housing

Trust of SEWA is responsible for housing and the

means to construct houses. SEWA Bank disburses

3.  Hospitalisation and Maternity

Health insurance complements SEWA's own extensive

considerable number of housing loans every year to

health-related activities and is an appropriate

help women in various fields to rebuild their lives.

methodology for women workers to take care of their

well being. A comprehensive package for women and

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ELIGIBILITY

their spouses, which is modelled after a group plan

offered by United India Insurance, hospitalisation

For all coverage, only SEWA members and their

coverage reimburses the members' hospitalisation

husbands are eligible. A husband cannot enroll in the

bills and related medical expenses resulting from

programme unless his spouse is an enrolled SEWA

illness. The limits for coverage are between

insurance member. Women must be 18 to 58 years

Rs.1,300/- and Rs. 9,000/- depending on the insurance

of age to enroll for annual membership. Life insurance

package. In 2001, SEWA linked again with NIC for

coverage terminates at 58 years. However, the members

health insurance.

with fixed deposit can continue the health and assets

insurance until the age of seventy years. Enrolment

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