Janashree Bima Yojana has been designed by LIC , for the persons below poverty line. The salient features of the scheme are as under:
Objective
The objective of this scheme is to provide life insurance protection to the rural and urban poor persons below poverty line and marginally above poverty line.
Eligibility :
1. Persons between age 18 years and 60 years
2. In addition to persons under BPL, even persons marginally above poverty line may be covered provided they belong to identified vocational groups
3. Persons living in one area even if they belong to identified vocation s where relationship of vocation is established like taxi drivers and auto rickshaw drivers can be grouped for the scheme, if nodal agency is one.
4. The groups will be identified and notified by LIC in consultation with State Govt/Nodal Agency.
5. Minimum Membership should 25 under, Rural poor and Urban poor
Benefits
A) In the event of death of the member Sum Assured of Rs. 20,000 will become payable. To the nominee.
B) Accident Benefit: In the event of death by accident or partial /Total Permanent Disability due to accident the following benefit shall be payable to the nominee. i) On death due to accident Rs 50,0000 US$ 1086 ii) Permanent total disability due to accident Rs 50,0000 ‘’ iii) Loss of 2 years or 2 limbs OR
One eye and one limb in an accident Rs 50,0000 ,,
iv) Loss of one eye or one limb in an accident Rs 25,0000 US$543
Premium
• Initially, Rs 200/ -per member to be shared as under
• 50% of the premium to be paid by members or Nodal Agency Or State Govt at the time of submitting proposal and subsequently on each annual renewal date.
- The balance 50% of the premium will be borne by social security Fund.
• Experience Rating Adjustment will be allowed after 3 years on the basis of claim experience, if the group is of minimum 2000 members. Even if the group is small and if the claim experience is adverse, we may review the rates.
• Nodal Agency shall mean the Panchayats NGOs, Self help Groups and any other institutionalized arrangements.
• The Nodal Agency will act for and on behalf of the insured members inall matters relating to the scheme.
Claim Procedure :
The beneficiary of the deceased members will be required to furnish the orginal death certificate to the Nodal Agency who will arrange to forward the same along with the claim papaers to LIC (ie) the Branch which has originally finalized the scheme LIC will settle the claims by sending A/C Payee Cheque directly to the beneficiary. In case of accidental claim police inquiry report will also be required to be submitted. The detailed procedure will be mainly on the lines of the procedure of Social Security Group Schemes.
Vocational/ Occupational Groups
Existing Groups-
The existing 24 occupational groups will continue in the same form for renewal of the Schemes
• The existing 24 groups are
• The existing Schemes
New Groups-
The vocational will be, for example, on the basis of groups like workers in
i) food stuffs like khandsari ii) textile
iii) manufacturer of wood products iv) manufacturer of paper products v) printing
vi) rubber & coal products
vii) chemical products like candle manufacture viii) mineral products like earthen toys manufacture
ix) other related cottage industries to be identified by nodal agencies and also other groups as identified by the Nodal Agency and approved by LIC.
Approval of the Groups
Annexure - 2 List of MFIs offering insurance to the clients76
Name of the organisation Type of insurance Started insurance scheme in In house or partnership with insurance company Voluntary or compulsory Number of clients
LEAD Cattle 1999 In house Compulsory for
loanees
370
Accident 2001 Link with
company
voluntary 3000
Life and accident 2001 Link with
company voluntary 500 Association of thrift co operatives promoted by CDF
life 1993 In house Compulsory for
loanees
32,000
Chaitanya accident 1993 Link with
company
voluntary 600
Chaitanya Cattle 1993 ,, Compulsory for
loanees
250
ICNW Life and accident 1983 Link with
company
Voluntary 70,900
ICNW Health 2000 Link with
company
Voluntary 20,441
ASA Life and accident 2000 Link with
company and in-house
Voluntary 5069
cattle 1998 Link with
company
Compulsory with loan
2682
SPARC Health 1998 Link with voluntary n.a.
76
This list consists of some of the well known micro insurance programmes. There may be other small programmes offering social security to their members.
company Anna Purna
Mahila Mandal
Old life pension 1999 Link with
company
voluntary 500
Sewa Bank Life, asset,
maternity, health Link with company as well as in house voluntary 30,000 Mulakanoor Co operative society
life 1980 In house Compulsory for
loanees
NA
,, Life and accident 1975 Link with two
insurance companies
The co operative society pays the premium out of its profits for all its members as a welfare measure 6,000 ,, Motor pumps(damage and electrical repairs) 1990 Link with insurance company voluntary 3200
,, Cattle insurance ,, voluntary NA
BASIX Life and
Accident
2000 Link with
Insurance Company
Voluntary 1450
BASIX Crop Insurance 2000 Innovative in-
house effort
Voluntary 80
SIFFS Life and
Accident 1992 Link with Insurance Company Voluntary NA Federations promoted by DHAN Foundation Life and Accident 1993 Link with Insurance Company Voluntary NA Federations promoted by DHAN Foundation
Health 1993 In-house and
also linked with company
Annexure 3
Case studies of Micro insurance programmes of MFIs
Co operative Development Foundation
Co operative Development Foundation was founded in 1982 with the aim of promoting cooperative enterprise and developing cooperative environment. It has been registered as a Society under the Andhra Pradesh Societies Registration Act, originally under the name of Samakhya77. It has been successful in the promotion of multi purpose cooperative societies involved in agricultural production and marketing and has attempted to translate this success in promotion of thrift cooperatives. CDF has also been successfully engaged in cooperative advocacy, research and training.
Thrift co operative system
The primary organization in the thrift co operative system is the thrift co operative functioning at the village level which consists of 250 to 750 members. CDF has been in favour of such large units as it felt that the operation of smaller units is not viable. It is easier to command more resources such as staff in larger units. Each co operative has smaller groups called joint liability groups consisting of five members. These five members stand guarantee to the loans taken by each other. The thrift co operatives are registered under the Andhra Pradesh Mutually Aided Co operatives Act, 1995.
As on December 2000, the organization has promoted 158 men thrift cooperatives(MTCs) and 199 women thrift cooperatives (WTCs)78. The thrift co operatives are in turn formed into Associations of Men’s Thrift co operatives (AMTCs) and Associations of Women’s Thrift co operatives (AWTCs). The thrift co operatives within a radius of 10 to 14 Kilometers are the members of the associations. Thus each association has 10 to 12 co operatives as members and has a coverage of 3000 to 5000 individual members.
77
In Sanskrit the word Samakhya translates to speaking as equals. In the local language Telugu Samakhya means Federation.
78
Exclusive women’s thrift co operatives have been formed since CDF had not been able to involve many women in the co operatives it had earlier promoted. The agricultural co operatives had an exclusive male membership. Given the social milieu it was difficult to ensure participation of women in the mixed group and there fore CDF started emphasizing on all women’s co operatives.
CDF structure Thrift co operative
1) Size - 300 to 1000 members
2) Board of Directors 12 members(with staggered terms)elected by
General Body
3) Director’s term 3 years
4) President Elected by the Board of members from among
themselves
5) Term one year
6) Staff Book keeper
7) Meetings Board meets every month.General Body consisting
of all members meet once in a year.
Association
1) Size - 10 –20 TCs within 10 km radius
2) Board of Directors 6 members elected by General Body
3) President Elected by the Board of members.
4) Term one to three year
5) Staff Internal auditor and book keeper
Socio economic profile of the members
The thrift co operatives include members from the whole of the village and operates on the principle of open membership. Thus CDF does not encourage caste, class or religious solidarity. They are heterogenous in nature - both poor and rich are members. Similarly the members belong to different castes and religions.
Major activities
The main activities of the thrift co operatives are mobilization of the savings of the members and disbursement of credit as per their needs. In the initial years the co operatives usually had only one savings product - the compulsory thrift deposit of the members. Every month equal amount is paid by all the members. As the co operative gained experience three more products (voluntary) have been introduced since last year – savings deposit, recurring deposit and fixed deposit.
1. Savings deposit enable the members to deposit their small savings as and when they can. The amount deposited can be withdrawn as per their needs.
2. Recurring deposits - members deposit a fixed amount each month and the period of deposit vary from one year to three years. Members can borrow 75% of their deposits under this account as a loan.
3. Fixed deposit - members deposit a minimum of Rs. 500 and in multiples of Rs.100 there of for a fixed period of one, two or three years. As in the case of recurring deposit the member can borrow up to 75% of their deposits as a loan.
4. Death Relief Assistance Scheme ( DRAS) Deposits – The borrowers are covered under DRAS, an insurance scheme providing coverage up to Rs.10,000. The amount of coverage depends on the age of the member. Members pay a deposit as per their age and eligibility. The deposits are with drawable after three years provided no loan is outstanding in the member’s name. This scheme is covered in more detail later.
Table 3.1 Terms of deposits at thrift co operatives
Type of deposit Period of deposit Rate of interest (per cent
per annum)
Compulsory thrift Each month 12
Savings Any time 6
Recurring deposit 1 year 9
2 years 10
3 years 11
Fixed deposit 1 year 8
2 years 9
3 years 10
Lending programme
The members are eligible to borrow up to thrice the amount deposited by them in compulsory thrift and DRAS. Deposits in other products are not considered for loan eligibility. The older societies lend for short to medium term of up to 24 months. The interest rate varies from society to society. The societies are normally charging a rate of interest of 18 to 24 per cent per annum on the loans.
The membership in these societies and other key data are given below
Table 3.2. Thrift co operatives formed by CDF - an over view
Description Unit Men’s thrift co operatives Women’s thrift co
operatives 1998 1999 2000 1998 1999 2000 Members No. 18036 20,477 31,308 31,271 38,187 45,386 Number of TCs No. 69 91 158 100 143 199 Association of thrift co op No. 6 9 21 12 15 27 Members with recurring deposit Savings No. - - 97 6 106 96 276 14 890 211