Sa-Dhan Newsletter Volume 1 Issue 4

Micro-Insurance

Table 8: SEWA IIS- Income and Expenditure 1994-99, in `000 of Rs.

Year

1994

1995

1996

1997

1998

1999

Income

Member's contributions

480

800

975

1275

1650

1945

Other contribution- related items

0

0

56

10

0

0

Interest and other income on investments

1663

1842

1917

1532

1447

1834

Total cash income

2113

2642

2948

2817

3097

3329

Government subsidy (LIC scheme)

180

225

300

375

480

450

Total

2293

2867

3248

3192

3577

3779

Expenditure

Premiums to LIC (incl. Subsidy)and GIC

660

650

834

1062

1366

1078

Claim payments paid by SEWA

126

124

259

266

396

397

Maternity and other non-claim benefits

99

77

148

198

151

157

Administration costs charged to scheme

283

292

511

832

651

409

Operating balance

1125

1724

1496

834

1013

1738

Total

2293

2867

3248

3192

3577

3779

The operating balance shown in the table is the surplus for the year. The accumulated surplus constitutes the

scheme's reserve.  The fund, largely created from the GTZ grant provided to SEWA for the purposes of the

scheme in 1993, has been invested in deposits and fixed-interest- bearing securities in a range of Indian

institutions. Of these, the investment in the ailing Hindustan Machine Tools Company has proved to be non-

performing, although a significant proportion of the capital invested has, in fact, been recovered. Nevertheless,

the real value of the investment is uncertain.

Table 9 shows the consolidated funds of the IIS, and so includes not only the "GTZ fund" from which

administrative expenses are drawn, but also the reserves which have been built up through the accumulation

of premiums, less expense and claims, in the health and assets components of the scheme.

Table 9: SEWA IIS-Consolidated Funds Statement 1994-99, in '000 of Rs.

Year

1994

1995

1996

1997

1998

1999

10787

12063

13795

15671

16517

17694

Fund-Opening Balance

Add Net Operating income

-357

-110

-411

-686

-270

-106

Income from investments

1633

1842

1917

1532

1447

1834

Additional grant

0

0

370

0

0

0

Fund-Closing Balance

12063

13795

15671

16517

17694

19422

Representing:

12039

13511

15196

15708

16293

17535

Balance on "GTZ fund"

24

284

809

809

1196

1506

Health branch reserves

0

0

0

0

205

381

Assets branch reserves

12063

13795

16517

16517

17694

19422

Total

11540

12070

12460

12250

11570

12450

Fund closing balance at mid-1994 Rs. values

Of which the Grant Fund was

11520

11460

12080

11650

10870

11240

These reserves are not at present separately identified in the IIS accounts. The last two rows of the table

show the total fund balances at each year-end, converted into 1994 Rs. equivalent values. This shows that

there has been steady, if not spectacular growth, in real terms of the IIS as a whole, which reflects the build-

up of the in-house health and assets components. The value of the Grant Fund has been broadly been

maintained in real terms, after recovering from a dip in 1997-98.

Table 10 shows the nominal rate of return on investment of the funds, calculated as the interest and other

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