Sa-Dhan Newsletter Volume 1 Issue 4
Micro-Insurance
Table1: Features on Insurance Schemes
Member pays Rs. 50/- premium
Social security
Data is not available for
In house
Voluntary
for cover for three years. The
scheme
LEAD as a whole since
programme
cover is Rs. 500/- on death and
each
federation
of cluster
Rs. 250/- for hospitalization
implements the scheme.
level
above 15 days.
Details are with the
federations
federations implementing
the scheme.
All women in the age group of
Raja
3,000
Linkage
Voluntary
10 to 75 can become members.
Rajashwari
with Oriental
accident
Covers death of husband
Mahila Kalyana
Insurance
coverage
and disablement of women due
Bima Yojana
Company
to accidents. Coverage is
Rs. 25,000/-. Premium is
Rs.23/- per annum.
Covers death of the member both
HDFC
500
Housing
Voluntary
Development natural and accidental death.
Development
Life
Annual premium of Rs. 95/-
Insurance Plan
Finance
Cover,Standard
Corporation
Life
(HDFC)
4
LEAD'S ENTRY INTO LIVESTOCK MICRO
4.
The client has to purchase the animal within a
INSURANCE
week of disbursement of the loan. On purchase
the animal is inspected by the staff of LEAD
LEAD's foray into livestock insurance coincided with
who will check whether the animal is really
its entry into livestock financing in a big way. As the
worth the purchase price paid by the borrower,
loan amount of Rs.10, 000/- was high when com-
and whether it can be insured for the same
pared to the savings of the members (savings to
amount. If the animal is not worth the price/
credit ratio in some cases are as high as 1:10), LEAD
insured amount the borrower is advised to
thought of the cattle insurance scheme to protect its
change the animal.
loan portfolio. The clients did not welcome the
5.
The animal is kept under observation for a
scheme since they felt that the mortality rate of milch
period of fifteen days to check whether the
cattle is low and they have considerable traditional
animal is healthy and is worth insuring.
experience in rearing cattle. However, LEAD made the
6.
On completion of fifteen days a metallic tag is
scheme compulsory to all the loans disbursed under
put around the ears of the animal, which is an
the Rabo bank programme.
essential step in insuring the animal.
Any
insurance claim of an animal without an ear tag
4.1 Cattle Insurance: Essential Features
The essential features of the cattle insurance scheme
is not entertained.
are:
7.
In case the animal dies, the client has to inform
1.
The animals purchased under the Rabo bank
the organization within two hours. The carcass
scheme are at present covered under the insur-
will be inspected by the para vet and the doctor
ance scheme.
before its disposal.
2.
The premium to be paid per year for cows and
8.
Within a week of the death, the claim form has
buffaloes is Rs.420/- i.e. Rs. 840/- for two years.
to be duly filled and submitted to the organi-
The premium amount is deducted from the loan
zation. The tag of the animal should also be
amount and only the net amount is paid to the
attached.
borrower.
9.
The claim has to be settled within a month. In
3.
Cattle care is compulsory for the loan term of
case of any delay the client is informed of the
two years1 .
status of the claim.
Cattle care facilities were introduced from November 1999 to provide better care of animals, better yield of milk, which
2
would result in less loan defaults, and lesser insurance claims. The client has to pay one hundred rupees each year for
cattle care. The charges for two years are deducted from the loan amount prior to disbursement in respect of animals
purchased out of Rabo bank loans. The cattle care at present entails deworming of the animal three times a year and
Vaccination against Foot and mouth disease and other commonly prevalent disease once in six months. The services of
the para vet and the doctor are available for treating other major illnesses for which the client has to pay only for the
medicine.
17
