Social Security Scheme of IRIA (SSS – IRIA)

1. Social Security Scheme of IRIA(SSS – IRIA) Dr. Suresh H. Saboo Vice President, IRIA

2. Introduction • Social and financial security is needed by everyone • Many other medical organizations like FOGSI, IMA – running similar scheme very successfully • IRIA – A big and strong organization • Such scheme will increase our members

3. Salient features • Scheme only for life members • ONE TIME PREMIUM • Premium increases with age • Death Fraternity Contribution (DFC) – required every year, depending on the number of deaths • 1000 members required in the first year to make it reasonably viable • No death benefit to any member in the first year of scheme (Accidents – excluded) • Rapid settlement of death claims (Within 7 days)

4. Portfolio management • The money will be invested in

5. Proposed scheme

6. Premium table for becoming a member of the scheme

7. Projected figures in first year of scheme

8. Approximate interest • Total collected amount : 56,00,000 • Interest @ 6% : 3,36,000 Death claims (Assuming 2 accidental deaths) • 1,25,000  2 : 2,50,000

9. Balance sheet (at the end of first year)

10. Second year of scheme Considering 300 new members

11. Approximate interest • Total collected amount : 55,86,000 • Interest @ 6% : 03,35,160 DFC (Assuming 2 accidental deaths)

12. Death claims in Second year Death claims • 1,25,000  7 : 8,75,000

13. Balance sheet (at the end of second year)

14. Third year of scheme Considering 200 new members

15. Approximate interest • Total collected amount : 67,96,160 • Interest @ 6% : 04,07,770 DFC (For 7 deaths in previous year)

16. Death claims in Third year Death claims 1,50,000  10 : 15,00,000

17. Balance sheet (at the end of Third year)

18. Fourth year of scheme Considering 150 new members

19. Approximate interest • Total collected amount : 74,63,930 • Interest @ 6% : 04,47,836 DFC (For 10 deaths in previous year)

20. Death claims in Fourth year Death claims 1,75,000  6 : 10,50,000

21. Balance sheet (at the end of Fourth year)

22. Fifth year of scheme Considering 150 new members

23. Approximate interest • Total collected amount : 89,36,766 • Interest @ 6% : 05,36,206 DFC (For 6 deaths in previous year)

24. Death claims in Fourth year Death claims 2,00,000  7 : 14,00,000

25. Balance sheet (at the end of Fifth year)

26. Option of merging with LIC group insurance • Insure member for a pre-decided amount say 1 or 1.5 lac • Premium rate – Age of the person • Upto 40 yrs of age – Rs. 350/ year • > 45 – Rs. 530/ year • The scheme is administered through association • Association is the master policy holder • Premium payment and settlement of claims through association

27. Implementation of LIC group insurance • Association provides list of members with date of birth • LIC will inform the premium amount • Association will fill up the form and the master policy is issued • Scheme is renewable every year

31. Summary • NSS is viable, needs systematic planning and implementation • 1000 members – realistic target • Office bearers should not be changed for first five years • We have benefit of good office structure • LIC group insurance – another option • Fund investment in proper portfolios is crucial