Sa-Dhan Newsletter Volume 1 Issue 4
Micro-Insurance
Traditionally the women have been undertaking sav-
Introducing this service can be a very strategic move
ings and credit operations and are aware of the
and can bring in more clients under cattle care and
nuances of these transactions. Insurance as a finan-
cattle insurance. Integrating cattle care and cattle
cial service is new to many of them. Many of them
insurance can be a good step in increasing the ac-
view the insurance as a no return and money losing
ceptability of the programme among the women.
proposition. The organization has to build the aware-
ness about this financial service among the women.
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BUILDING CREDIBILITY
Though LEAD has made significant inroads in its
LEAD is keen to build the credibility of the programme
cattle insurance services in its project areas,
among the clients. Building credibility of the
it requires funding support for -(i) Staff support (to
programme involves client education on the
take care of cattle insurance as well as other schemes),
programme, especially the exclusions, providing good
(ii) client sensitization, (iii) staff capacity building, (iv)
services for cattle care including need based services
MIS, (v) AI services, (vi) reserve funds, and (vii) client
such as AI and prompt settlement of claims.
needs assessment and impact survey.
12 AWARENESS BUILDING
Ms. N. Radha is Executive Director, LEAD
Ms. Meera is Credit Manager LEAD
Awareness building among the grass root women for
insurance facilities has to be under taken.
***************
Glossary Of Insurance Terms
Assessment: in insurance, a charge upon car-
5.
Accountability: responsible, liable, and explain-
1.
riers to raise funds for a specific purpose (such
able. To account means to furnish a justification
as meeting the administrative costs of a govern-
or detailed explanation of financial activities or
ment required program) made by government ...
responsibilities; to furnish substantial reasons or
and provided for in law or regulation.**
convincing explanations. Accountability entails
an obligation to periodically disclose in adequate
Beneficiary: a person who is eligible to receive,
6.
detail and consistent form to all directly and
or is receiving benefits from an insurance
indirectly responsible or properly interested
policy.**
parties. **
Benefit: in insurance, a sum of money provided
7.
Accredition: the process by which an agency or
2.
in an insurance policy payable for certain types
organization evaluates and recognizes a program
of loss, or, for covered services, under the terms
of study or an insurance as meeting certain
of the policy.**
predetermined standards. The recognition is
called accredition. Similar assessment of indi-
Cash benefits: cash payment made by the
8.
viduals is called certification.**
scheme to compensate for loss of income in
case of illness, accident or maternity, or for
Acquisition cost: the immediate cost of selling,
3.
additional expenditures in case of maternity or
underwriting, and issuing a new insurance policy,
death.**
including clerical costs, agents' commissions,
advertising, and medical inspection fees.**
Cash value: The equity amount or 'saving'
9.
accumulation in a whole life policy.*
Actuary: in insurance, a person trained in sta-
4.
tistics, accounting, and mathematics who deter-
10. Claim: a request to an insurer by an insured
mines policy rates, reserves, and dividends by
person (or, on his behalf, by the provider of a
deciding what assumptions should be made
service or good) for payment of benefits under
with respect to each of the risk factors involved
an insurance policy.**
(such as the frequency of occurrence of the peril,
the average benefit that will be payable, the rate
11. Claim: Notification to an insurance company
of investment earnings, if any, expenses, and
that payment of an amount is due under the
persistency rates), and who endeavors to secure
terms of the policy.*
as valid statistics as possible on which to base
12. Collateral: A temporary assignment of the mon-
his assumptions.**
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