Sa-Dhan Newsletter Volume 1 Issue 4
Micro-Insurance
on the deposit is directly credited as the annual
is open only once every year on the first of July,
premium. The fixed deposit scheme allows the woman
except for members who select the Fixed Deposit
to avail of life membership of the complete health and
Premium option who can enroll at any time. The pre-
asset protection programme. For those opting for the
existing conditions are excluded for hospitalisation
fixed deposit scheme, SEWA offers maternity benefits
coverage. There is a one year waiting period for
(without charging premium) of Rs 300/- per childbirth,
maternity benefits as well as for hysterectomy and
as SEWA considers it to be an essential component
cataract surgery. Additionally, benefits are paid for
of the overall work security for women workers.
only a single episode of illness for chronic conditions
Women past childbearing age are given support for
(such as Tuberculosis) that develop after enrolment.
dentures, cataract operations and hearing aids. The
second type of premium payment is for members who
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TYPES OF PREMIUM
pay their annual premium to renew the insurance. The
option of buying additional insurance for the member's
SEWA has two types of premium payment- the fixed
spouse by paying an extra amount is available in both
deposit linked scheme, and the yearly premium scheme.
the schemes. The types of premium under different
The FD linked scheme is for women able to make a
schemes are given in Table 5.
one time payment to become members of the insurance
scheme till the age of 58 years. The annual interest
TABLE 5: TYPES OF PREMIUM
Annual Premium (in Rs.)
Fixed Deposit (in Rs.)
Member's Insurance
Spouse Insurance
Member's Insurance
Spouse Insurance
Scheme1
75
45
700
450
Scheme2
180
135
1,800
1,350
Scheme3
360
300
3,600
3,000
9 SYSTEMS AND PROCESSES
8 PARTNERS
9.1Premium Collection
SEWA's IIS programme has multiple partners including
LIC, NIC and SEWA Bank (see Table 6). LIC provides
The insurance premium for any insurance year (that
the complete coverage for natural death and partial
is, 1st July to 30th June) is received in advance
coverage for accidental death. NIC partially provides
during 1st April to 30th June. A portion of the
for accidental death of both the life partners for health
advance premium is transferred to LIC of India,
insurance, and asset insurance. The financial services
another to National Insurance Corporation and a third
are provided by SEWA Bank while SEWA backstops
to SEWA. A member can make payment towards
the entire operation. The maternity benefit (applicable
insurance premium at the Social Security Office or to
only for fixed deposit holders) and administrative
the insurance fieldworker. A premium receipt mentions
costs come from the core fund of Rs 1 crore
the premium amount, the year for which it has been
established by GTZ in 1992 which has since increased
paid, the names of the insured as well as of the
to Rs 2 crores. A separate GTZ grant supports the
nominee. During premium collection all units of
training and educational aspects of the programme.
SEWA work together, with Vimo SEWA being the focal
point of all insurance activities within SEWA. The field
Table 6: IIS- PARTNERS AND INSURANCE COVERAGE
workers work closely with the Vimo Aagewans
throughout the year.
Provider
Description Coverage
9.2Marketing and Outreach
LIC
Natural death of the member Accidental death
SEWA's insurance programme has access to SEWA's
of the member
existing service delivery system (see Figure 1).
NIC
Accidental death of the member Accidental
Cooperatives and producers groups promoted by
death of the spouse (widowhood)
SEWA, SEWA Bank's savings groups and other
organisations working with SEWA members as part
NIC
Sickness Loss of assets
of the SEWA movement, are all potential distribution
GTZ
Maternity benefit, from the core fund established
vehicles for SEWA Insurance. In addition, SEWA
in 1994
Insurance has a special, dedicated and trained
marketing and promotional team whose members are
called Vimo Aagewans.
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