Strength in Solidarity Strength in Solidarity SEWA InsuranceSEWA Insurance

SEWA Insurance (Vimo SEWA): SEWA Insurance (Vimo SEWA): MembershipMembership

80,389 Women

34,753 Men 18,541 Children

133,683 Total insured

Current insurance packages offered

Scheme I Scheme II

Annual premium (Rs.) 100 225

Fixed deposit (Rs.) 2,100 5,000

Natural Death (Rs.) 5,000 20,000

Mediclaim 2,000 6,000

Asset Loss 10,000 20,000

Accidental Death 40,000 65,000

Accidental Death (spouse)

15,000 15,000

Linked to AVIVA (life) and ICICI-Lombard (non-life)Linked to AVIVA (life) and ICICI-Lombard (non-life)

StructureStructure• Currently unit within SEWA;

we work as a Cooperative

• Future: registered CooperativeFuture: registered Cooperative

ImplementationImplementation

• Decentralized - 5 districts in Gujarat,Decentralized - 5 districts in Gujarat, Delhi, Tamil Nadu, IndoreDelhi, Tamil Nadu, Indore

• Through Aagewans and local teams whoThrough Aagewans and local teams who promote & educate promote & educate & provide claims-servicing& provide claims-servicing

Promotion & EducationPromotion & Education

• Network of 120 Network of 120 aagewans in regular aagewans in regular contact with insuredscontact with insureds

• Small meetings, door-Small meetings, door- to-door contact, gramto-door contact, gram sabhas, sammelans,sabhas, sammelans, advertisements inadvertisements in “ “Anasuya”Anasuya”

Promotion & EducationPromotion & Education

• Education – capacity-building of aagewans Education – capacity-building of aagewans and local teamsand local teams - education on insurance and our scheme to- education on insurance and our scheme to membersmembers

• Annual premium collection campaignAnnual premium collection campaign

• Promoting fixed-deposit members throughPromoting fixed-deposit members through savings groups, “Salamat Loan”savings groups, “Salamat Loan”

Claims ServicingClaims Servicing• Claims Committee:Claims Committee: - decentralized in 3 districts (2 to follow - decentralized in 3 districts (2 to follow in 2005)in 2005) - three times a week- three times a week - 80% aagewans and 20% organisers- 80% aagewans and 20% organisers on committeeon committee

• Claims disbursement:Claims disbursement: - by cheque, and at doorsteps- by cheque, and at doorsteps - on hospital bed in some districts- on hospital bed in some districts

Claims ServicingClaims Servicing

• Claims processing time taken (current) :Claims processing time taken (current) :

Urban – 7 days from claim registrationUrban – 7 days from claim registration

Rural - 15 days from claim registrationRural - 15 days from claim registration

Number of claims

Amount (Rs.)

Life 383 17,27,000

Accident 19 5,85,000

Sickness 3773 63,40,916

Asset Loss 620 8,71,999

Total 4795 95,24,915

Claims Profile 2004Claims Profile 2004

- Claims covered by Premiums- Claims covered by Premiums - 30% of administrative costs- 30% of administrative costs covered by premiumscovered by premiums - Extra support needed for administrative - Extra support needed for administrative costs and R & Dcosts and R & D - Need to reduce promotional - Need to reduce promotional administrativeadministrative costscosts - Need matching fund from government, - Need matching fund from government, othersothers

ViabilityViability

- reaching the poorest- reaching the poorest

- strengthening services - strengthening services

- new products- new products

- renewal rate- renewal rate

ResearchResearch

- Reduction of capital requirement- Reduction of capital requirement

- Enabling people’s organisations- Enabling people’s organisations to undertake microinsuranceto undertake microinsurance

- Regulations which support and- Regulations which support and promote microinsurancepromote microinsurance

Policy IssuesPolicy Issues

VimoSEWA

SEWA Insurance of the Self-SEWA Insurance of the Self-Employed Women’s Association Employed Women’s Association

(SEWA) (SEWA)