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WORKSHOP ON MICRO INSURANCE

WORKSHOP ON MICRO INSURANCE. ISSUES AND SPECIAL BARRIERS IN SERVICING MICRO INSURANCE CLIENTS. By Dr.P.NARAYANA RAO, Senior Divisional Manager, The Oriental Insurance Co. Ltd. Divisional Office, Kakinada.

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WORKSHOP ON MICRO INSURANCE

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  1. WORKSHOP ON MICRO INSURANCE

  2. ISSUES AND SPECIAL BARRIERS IN SERVICING MICRO INSURANCE CLIENTS By Dr.P.NARAYANA RAO, Senior Divisional Manager, The Oriental Insurance Co. Ltd. Divisional Office, Kakinada

  3. THE MICRO CLIENT?A RETAIL CUSTOMER, A PERSONAL LINES POLICYHOLDER, A NON-INDUSTRIAL POLICYHOLDER, MAY BE A RESIDENT OF RURAL/SEMI-URBAN/URBAN.

  4. GPA JPA UHS PA NAGRIK SURAKSHA HUT CATTLE SHEEP & GOAT HOUSEHOLDERS MEDICAL FISHPONDS PLANTATION FARMERS PACKAGE RAJARAJESWARI BHAGYASREE CHILD BULLOCK CART BICYCLE OTHER RURAL INSURANCES. THE MICROINSURANCE PRODUCTS

  5. ISSUES RELATING TO UNDERWRITING • NO PUBLICITY – NOT AWARE OF THE POLICIES • NO KNOWLEDGE ABOUT THE COVERS • LOW PREMIUM INCOME – AGENTS ALSO NOT CANVASING AT MICRO LEVEL – HENCE PUBLIC NOT AWARE OF THE PROCEDURE AND WHOM TO APPROACH. • INDIVIDUAL/SMALL GROUPS NOT VIABLE • POLICIES ISSUED THROUGH BANKS / FINANCIAL INSTITUTIONS – MERELY A STATUTORY REQUIREMENT. NO RISK INSPECTION / NO IDENTIFICATION – INADEQUATE SUM INSURED. NO PROPER RISK COVERAGE. BENEFICIARY UNAWARE OF THE EXISTENSE OF A POLICY.

  6. ISSUES / SPECIAL BARRIERS CLAIMS • CLAIM PROCEDURE NOT KNOWN • NOBODY TO ADVISE CORRECT PROCEDURE. • TOO MANY REQUIREMENTS Eg.: 24HRS. HOSPITALISATION, NURSING HOME DEFINITION, BILLS, RECEIPTS IN CASE OF HOSPITALISATION.

  7. INSURERS • NO SPREAD OF MARKETING FORCE. • NO PROPER AGENCY DEVELOPMENT. • INADEQUATE TRAINING TO AGENTS. • MOFUSSIL BRANCHES NOT VIABLE. • COST OF BUSINESS PROCUREMENT VERY HIGH. TAGGING, RETAGGING, DOCUMENTATION ETC. • SERVICING OF CLAIMS IS VERY EXPENSIVE • SURVEYOR / INVESTIGATOR.

  8. CLIENTS • DELAYED INTIMATION / MISCOMMUNICATION. • LENGTHY CHAIN – MICRO CLIENT TO BANK – INSURANCE CO. AND BACK. • INADEDQUATE / IMPROPER COVERAGE. • UNDER INSURANCE. (MORE NO. OF ANIMAL BUT COVERAGE VERY FEW). • EXPLOITAION BY MIDDLEMEN. • ELIMINATION OF FRAUDULANT CLAIMS.

  9. SUGGESTIONS FOR IMPROVEMENT • IN ORDER TO MAKE IT VIABLE COVERAGE COULD BE SPREAD TO LARGE NO. – GOVT. MAY TAKE INITIATIVE TO MAKE CERTAIN COVERS MANDATORY AT VILLAGE LEVEL. EG. GPA, JPA, UHS, HUT ETC. – PREMIUM FOR MEDICAL TO BE RESTRICTED TO ONE DAY WAGE / TO BE CHARGED BASED ON INCOME. • CLAIM REQUIREMENTS BE AT VILLAGE LEVEL MAY BE SIMPLIFIED. WAIVER OF PM, POLICE PANCHANAMA ETC. WAIVER OF 24HRS. HOSPITALISATION, RELAXATION OF NURSING HOME.

  10. SEPARATE FIELD FORCE TO CANVAS FOR MICRO INSURANCE SCHEMES AND A SPECIAL MONITORING SYSTEM TO BE INTRODUCED. • INSURERS TO CONDUCT RURAL CAMPAIGNS NECESSARILY TO EXPLAIN ABOUT THE SCHEMES IN VERNACULAR LANGUAGE AND BY PUBLICITY MODES. • RURAL AGENTS RECRUITMENT MUST BE SIMPLIFIED – TRAINING TO BE RESTRICTED TO LESS NO. OF HRS – EXAM TO BE SIMPLE – ON THE JOB TRAINING TO BE MADE MUST. • AGENTS REMUNERATION TO BE INCREASED – LONG TERM PRODUCTS TO BE DESIGNED WITH SAVINGS LINK. • SPECIAL INCENTIVE SCHEMES TO BE INTRODUCED. • ADOPTION OF VILLAGE ALONGWITH BANKS / NGO’S TO ENLIGHTEN THE IMPORTANCE OF THE INSURANCE POLICIES. • SEPARATE SERVICING CENTRES TO BE SET-UP BY INSURANE CO. AT VILLAGE / MANDAL CENTRES.

  11. NO LOSS NO PROFIT BASIS. ANY QUESTIONS OPEN DISCUSSION THANK YOU

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