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8/2/2019 Microinsurance Suryamani

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Problem and Prospects ofMicroinsurance in Varanasi

Presented by

Suryamani Acharya

MBA-finance(4th sem)

Under guidance of

Prof. Rajkumar


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Microinsurance

A low premium and low cap insurance producttailor made to provide comprehensive cover tothe people at the bottom of the pyramid.


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Poor people borrow some of the time but save all ofthe time

People who have few (if any) assets verylimited chances to earn money

credit

savings

EntrepreneurialPoor

Self EmployedPoor

Laboring Poor

Very Poor

The Poverty Pyramid

People who are slightly below the poverty line.

insurance

Poor people who are meeting their basic needs byrunning microbusinesses

Farm laborers, domestics and unemployedworkers

RemittanceRemittance

Financial Inclusion encompassesSavings, Insurance

and Remittances, not just Credit


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Definition by IRDA-2005

Type Sum

assured(Rs000)

Term(year) Age (year)

Term Life 5-50 5-15 18-60

Endowment 5-30 5-15 18-60

Health(individual) 5-30 1-7 Insurer discretion

Health(Family) 10-30 1-7 Insurer discretion

Accident rider 10-50 5-15 18-60

Livestock/assets 5-30 1 NA

Accident(non-life) 10-30 1 5-70


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History of Insurance in India

The history of life insurance in India dates from 1818when this instrument was conceived means to providerisk cover to the families of Englishmen then serving in

India.

The Bombay Mutual Life Insurance Society(1870).

Triton Insurance Company Limited, the first generalinsurance company established by the British inCalcutta in 1850

The Indian Life Assurance Companies Act was enactedin 1912 as the first statute to regulate the lifeinsurance business


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History and current status of microinsurance

regulation

oThe first set of regulations published in 2002 entitled the

Obligations of Insurers to Rural Social Sectors.(quota sytem)

oIRDA 2005(Micro insurance regulation in India)


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Some facts about Microinsurance

Source: annual report of IRDA

14 insurance companies providing 28 micro insurance productThese various scheme has covered 198.26 lakh individuals.

By the end of 2010 there were 8676 microinsurance agent in

India


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Area covered by Microinsurance in India

Life Insurance.

Health InsuranceAccident insurance.Livestock insurance.

Micro enterprise insuranceWeather insurance.


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Objective of the study

To study the problem of microinsurance inVaranasi.

To study the future prospects ofmicroinsurance in Varanasi.

To study the general awareness regardingmicro insurance


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Research Design

Exploratory Research


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Scope of the study

It is intended to conduct the study amonglow income group people working inmanufacturing sector, running ownbusiness, Rickshaw puller, Boat rider,farmers etc. The area for the interview willbe conducted in nearby location of Varanasi


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Sample Design

Population: All the Low income people inIndia.

Sampling Unit: Individual workers (Rickshaw

puller, Boat rider, farmers and laborers inMSMEs) and households earning less than5000 per month.

Sample size: 100

Sampling technique: Non ProbabilityConvenience sampling

Tools: Structured Questionnaire, PersonalInterview


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