Welcome

1. Welcome District Rural Development Agency, Andhra Pradesh, India

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3. Access to Insurance for the Poor by the Poor of the Poor District Rural Development Agency, Andhra Pradesh, India

4. Structure • What is Indira Kranthi Patham • Empowerment • Core Beliefs • Institutional model • Activities • Community Managed Life Insurance District Rural Development Agency, Andhra Pradesh, India

5. Indira Kranthi Patham What is Indira Kranthi Patham • Indira Kranthi Patham is rural poverty alleviation project under implementation in the State of Andhra Pradesh (India) since October, 2000 • It is a Community Driven Development project • The fundamental building blocks of the strategy are • Facilitate Empowerment • Improve Opportunities • Increase Security District Rural Development Agency, Andhra Pradesh, India

6. Indira Kranthi Patham Our Core beliefs • Each poor family has the inherent potential and strong desire to come out of poverty • The poor require participatory institutions of their own to unleash this potential • There are committed people among the poor – Social Capital – who are willing to sacrifice their effort and time to help the other poor • There is a need for a sensitive support mechanism for nurturing the institutions of the poor and facilitate social mobilization District Rural Development Agency, Andhra Pradesh, India

7. Social networks of the poor SHGs SHGs SHGs SHGs SHGs SHGs • E.C - 2 from each V.O, 5 Office bearers • Support to VOs • Secure linkage with Govt. Depts, • fin institutions, markets • Auditing of the groups • Micro Finance functions ZS MMS 4000 - 6000 910 MS • E.C - 2 from each S.H.G, 5 Office bearers • Strengthening of SHGs • Arrange line of credit to the SHGs • Social action • Village development • Marketing and food security • Support activists V.O 150 - 200 27350 VOs • Thrift and credit activities • Monitoring group performance • Group level poverty • reduction plans • Household inv plans 6.9 million families 10 - 15

8. Indira Kranthi Patham Activities • Access Commercial loans from Banks • $266 million in 2004-05 • $445 million in 2005-06 • $778 million in 2006-07 • Community Managed food security • Marketing support to Members • Social Action • Health and Disability intervention • Community Managed insurance District Rural Development Agency, Andhra Pradesh, India

9. Indira Kranthi Patham Designing Abhaya • Outsource risk while retaining control over policy administration • Minimize time gap between premium collection and start date of coverage • Do away with cumbersome claim documentation • Provide services at the doorsteps of the insured family • Establish Zilla Samakhya’s credibility with the Insurer and the insured District Rural Development Agency, Andhra Pradesh, India

10. Indira Kranthi Patham Comparative advantages Insurer CBOs • Enrollment • Provide risk cover • MIS • Training of CBOs • Claim documentation • Claim Settlement • Part settlement within • 48 hours District Rural Development Agency, Andhra Pradesh, India

11. Insurance and Social networks of the poor SHGs SHGs SHGs SHGs SHGs SHGs • Tie up with an Insurance Company • Nodal Agency for the scheme • Maintain data base and Call Centre • Issue Certificate of Insurance • MIS • Capacity building of its staff and community • Pay out solatium within 48-72 hours ZS • Planning and Monitoring • Training of VOs • Claim docuementation • Office bearer is member of Area Committee MMS 4000 - 6000 1,26,150 Lives covered in 2006-07 • Member education • Enrollment • Collection of premium • Reporting claims • Facilitate documentation of claims VO 150-200

12. Abhaya Premium @ 65 (USD 1.4) per head collected Premium @ 50 (USD 1.1) per head paid to LIC Sum Insured • Natural Death … Rs.30,000 (USD 666.66) • Accidental Death … Rs.75,000 (USD 1666.66) • Total & permanent disability • due to accident … Rs.75,000 (USD 1666.66) • Loss of One Eye/Leg/Hand • due to accident … Rs.37,500 (USD 833.33) District Rural Development Agency, Andhra Pradesh, India

13. Phone Abhaya Claim Settlement Process Claim village Call Centre located in ZS Rs.5000/- Phone Visit Visit ATM Area Committee consisting of Community Members • Area Committee completes claim documentation and sends to LIC via Abhaya Call • Center District Rural Development Agency, Andhra Pradesh, India

14. Total lives : 126150 Claims as on 08.04.07 • Death Claims received - 603 • Claims accepted - 576 • Claims rejected - 27 • Natural Death - 552 • Accidental Death - 24 • Disability Claims - 31 • Solatium paid (Rs.5000/-) - 569 • Claims sent to LIC - 473 • Claims settled by LIC - 440 • Claims settled by ZS - 440 District Rural Development Agency, Andhra Pradesh, India

15. Indira Kranthi Patham • CBOs can reach out faster and in a more credible manner • Enrollment in both years completed in 20 days • Low cost of administration Rs.6-8 per policy(USD 0.17) • Use of IT makes claim administration efficient and effective • CBOs retain control over the policy and hence improve the acceptance levels by the poor District Rural Development Agency, Andhra Pradesh, India

16. Indira Kranthi Patham “When community-based organizations are responsible for project design, management, and monitoring, costs per beneficiary are dramatically less, results are better, and benefits are more sustained” District Rural Development Agency, Andhra Pradesh, India

17. Thank you