Tata AIG Rural & Social Initiative

1. Tata AIGRural & Social Initiative Kiran Kumar K -Tata AIG

2. Cattle Insurance

3. Rural Market Segmentation Rich 2% Mid-Income 20% (Average Landholdings / Small Entrepreneurs) HH Income >$6/day (Annual Saving Rs.50,000/-) Above Poverty Line (APL) – 50% (Very Marginal / No Landholding) HH Income < $3/day (Annual Saving Rs.3000/-) Below Poverty Line (BPL) – 27% (Landless / Self Employed) HH Income < $ 1/day (Annual Saving Rs.500/- to1000/-) • 650,000 Villages • 800 m Population Demographics Risks / Insurance HIG/ MIG Segment - Top of Pyramid (TOP) • Crop Ins • Cattle farm, Poultry • Tractor Ins • Car, 2Wheeler Ins • Home Ins • IPA Ins • Health Ins • Travel Ins • Life Ins • >20 acres Land • > 4 Cattle, Poultry • Tractor • Car, 2Wheeler, Cycle • RCC Home • TV, Fridge, AC • Telephone Channel Finance: Comm/ Rural Bank Coop Bank, PACS Agriculture: Rice Mills Agri. Dealers Dairying: Coop. Dairy Pvt. Dairy Others: Rural Agencies Rural Agents • Crop Ins • Cattle farm, Poultry • 2Wheeler Ins • Disaster Ins • IPA ins • Health Ins • Life Ins • < 5 - 10 acres Land • < 3 Cattle, Poultry • 2Wheeler, Cycle • Tiled / RCC Home • TV Micro Insurance – Generally Group Biz Micro Ins Segment - Bottom of Pyramid (BOP) • Cattle Ins • Sheep / Goat Ins • Hut / Disaster Ins • GPA Cover • Micro Health Ins • Life Ins • < 2 acres Land • 1 Cattle, Livestock • Unorganized Labor • Skill based Occupation • Hut / Tiled Home Finance MFI NGO SHG Dairying Coop. Dairy Pvt. Dairy • Hut / Disaster Ins • GPA Cover • Micro Health Ins • Life Ins • Landless Laborer • Unorganized Laborer • Semi-Skill Occupation • Hut

4. Market Potential – Cattle India has the largest cattle population in the world approximately 283 million cattle, constituting 30% of the worlds cattle population. Cattle in India is predominantly buffalo. Cows make up 30% of the cattle population India is the largest producer of milk (100 Million Tones). Even with per capita milk production being one of the lowest in the world It is one of the few countries where cattle is considered holy and revered with religious fervor. It drives the secondary economic activity in rural India. The primary being agriculture.

5. Cattle Insurance - Product Provides comprehensive cover to cattle against death due to Diseases Accidents Natural calamities Riots, Malicious damage, Terrorism Permanent loss of milk yielding capacity due to disease For Cow, Buffalo, Stud Bull EXCLUSIONS • Intentional slaughter of the animal • Missing, Theft and/or clandestine sale of the insured animal • Partial Disablement of any type, whether temporary or permanent • Permanent Total Disablement (PTD) - incapacity to conceive or yield milk • War, nuclear material or weapons. • Consequential loss of whatsoever nature • Claim arising due to disease contracted within 15 days from risk date • Claims received without intact Ear tag

6. Issuance Process Identification of Cattle is key to successful implementation of cattle insurance Identified with unique numbered polyurethane (PU) Ear-tags This is done by proper Tagging of the animal at the time of acceptance for insurance

7. Issuance Process Tagging shall be done by trained officer Check and confirm the health of the animal Tag the animal successfully with PU tag Digitally photograph the animal along with the insured

8. Front View Identify Tag No. Identify shape of horns Identify facial colour and marks

9. Side View Identify the owner along with the animal Identify health of the animal Identify the colour and marks on the animal

10. Rare View Identify the udder of the animal Identify the shape of the legs Identify the health of the animal Identify colour and marks on the tail

11. Adverse Selection

12. Adverse Selection

13. Issuance Process Prepare the Schedule of animals tagged for insurance

14. Proposal cum Schedule Form

15. Issuance Process Hand over a vernacular pamphlet on animal care and contact info in event of claim. Proposal form (Hard/Soft Copy) and Digital Photographs to sent to the insurance company within the next 48 hours In the event of claim field staff will intimate the insurance company on the Toll free No. Field staff will help the surveyor in identifying the animal and facilitates necessary documentation.

16. Issuance Process Retagging Inform the Insurance Company immediately Arrange for retagging the animal Digitally photograph the animal once again Fill up a fresh proposal cum schedule and submit the same along with the photographs.

17. Claims Settlement Experience with various set ups: NGO/MFI/NBFC Private Dairies Co Operative Dairies Government Projects

18. Claims Settlement All genuine claims have been settled with 15 working days Proper underwriting ensures profitability in the long run to The Insured The Partner Then Insurance company

19. Our Strengths The salient features of our service We fundamentally believe in standardization of services up to the last mile Our product strength lies in our capacity to customize processes, which mitigates hardships in verification for insurance and reporting of claims. We will ensure proper risk management and consequently a better portfolio which is fundamental to a successful Insurance program. Our hi-tech risk management expertise will help reduce premium rates in the long run, much to the benefit of the customer. Claim Surveyor network across the country. In house claims process for faster settlement.

20. MFI Role in Rural Insurance Strength Trust-worthiness Knowledge of rural markets Well spread out Network Network at affordable cost Large customer base

21. MFI Role in Rural Insurance Benefits Secures MFI’s loans Protect members loans Value added services Capacity building in terms of soft skills

22. MFI Role in Rural Insurance • Opportunity • New channels of business • PROPERTY RISKS • Vehicle • 2 Wheeler • Personal car • Commercial vehicle • Tractor • Property • Home/ Hut • Shops & Outlets • Schools • Machinery/ Pump-set • PEOPLE RISKS For Members / Employees • Accident/ Injury • Health & Hospitalization 22

23. Our Milestones Cross Section of our Strategic Tie-ups: NGO/MFI/NBFC Indira Kranthi Pathakam – Vishakapatanam Grameen Koota – Karnataka Nava Karnataka Rural Development Society - Karnataka Private Dairies Dolphin Dairy – Andhra Pradesh Creamline Dairy Products Ltd Co Operative Dairies Baroda Dairy - Gujarat Amul Dairy –Gujarat Mehsana Dairy - Gujarat Government Projects LDB/LDA Projects – UP, Haryana & Rajasthan, Madhya Pradesh, Maharastra and Chhattisgarh Our cattle insurance program for IKP project in Visakhapatnam, Andhra Pradesh - which was a case study by itself - was well appreciated by World Bank and was a discussion forum topic at the World Bank Workshop on "Access to Insurance for the Poor," at Rio de Janeiro, in May, 2007

24. Tata AIG Presence Branch Offices POS E-Franchisee Existing Sales Offices: 84 Local Office:Tata AIG General Insurance Co LtdII Floor, My Home Tycoon,Greenland’s, BegumpetHyderabad 500 017Email id: kumar.kiran@tata-aig.comPhone No 040 66575914Mobile No 098855 22555

25. Appreciation from partners

26. Together We Can !!!