Sa-Dhan Newsletter Volume 1 Issue 4

Micro-Insurance

as specified in Regulation 3.

(2) The Authority shall review such quantum of

insurance business periodically and give directions to

Obligations of existing insurers.---  (1)  The

the insurers for achieving the specified targets.

obligations of existing insurers as on the date of

commencement of IRDA Act shall be decided by the

N.RANGACHARY, Chairperson

Authority after consultation with them and the

[No.Advt.-/4/Exty/161/2000]

quantum of insurance business to be done shall not

be less than what has been recorded by them for the

accounting year ended 31st March, 2000.

***************

Livestock Insurance: Experience Of Lead

- N. Radha, Meera

L

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THE BASE FOR MICROINSURANCE

EAD began in 1987, as a women's initiative for

the betterment of women. Its main objectives are

The savings and credit activity was found to be a

(a) to provide a common forum for social, economic,

good binding factor for bringing the women together.

legal and political advancement of rural women and

Thus sangams (self help groups [SHGs]) of women

(b) to help women attain self-reliance through voluntary

were formed with focus on savings and credit

action. LEAD is working in four districts in Tamil Nadu

management. The sangams were further networked

viz. Karur, Perambalur, Dindigul and Tiruchirapalli

for a sustainable process of development. Over time

districts.  The area of operation covers 330 villages

LEAD had expanded its activities to social and

and 52 Panchayats, and a population of one lakh and

economic programmes (health, sanitation, drinking

fifty two thousand.

water, literacy, housing, natural resource regeneration,

sustainable agriculture etc.) and new clientele. The

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PROFILE

OF

LEAD'S

CLIENT/S

main programme continues to be the savings and

COMMUNITIES

credit programme through the women sangams. LEAD

The communities that LEAD works with are mainly

at present has 165 full time and 106 part time

poor, socially backward, occupy the lowest social

development workers.

rung, and excluded. LEAD predominantly works with

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MICRO INSURANCE PRODUCTS

the Dalits and poor women. The problems faced by

the communities are- lack of access to outside

LEAD is implementing four micro insurance schemes

institutions, heavily indebted to moneylenders, friends

for its clients. Many formal insurance companies are

and relatives, illiterate, and many are unskilled. Within

approaching LEAD for selling their products. LEAD is

the household and community the men control the

negotiating with them to get the best terms for its

resources. Women are usually engaged in agricultural

clientele.  The features of the insurance schemes

labour work  and often migrate to nearby areas in

offered by LEAD are given in Table 1:

search of work.

Table1: Features on Insurance Schemes

Type of

Name of the

Number of policies

Nature of

institutional

Brief details

scheme

written

scheme

linkage

Cattle

S u p e r v i s e d Insurance against death of cattle 8 2 0

Compulsory

insurance

bought from loans and cattle care.

for loanees

by LEAD

The insurance period is for two

years with annual premium of Rs.

420/- collected upfront during

disbursement of the loan.  Basic

Cattle Care and vaccination are

provided for Rs. 100/- per year

along with cattle insurance.

The different sub-sects of the dalit community are identified by their occupation. Cobblers are usually scavengers,

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and blacksmiths. Most of the women tend to work as agricultural labourers.

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