what is insurance srushti

7/30/2019 What is Insurance Srushti

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NAGINDASKHANDWALACOLLEGE


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Course:

Banking and insurance

Subject:

environment and managementof financial services

Topic:

Micro insurance


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CONTENTS

Blah blah blah


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SrushtiBajaria

102

Paras105

Kinjal114

Poonam117

DimpleDhabalia

108

Ishita

Gandhi112


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AcknowledgementWE WISH TO EXPRESS OUR HEARTFUL

GRATITUDE TO SEVERAL INDIVIDUAL WHO HAVEINSPIRED AND SUPPORTED US CONSTANTLY,PERSONALY AND PROFESSIONALLY.

WE WOLUD LIKE TO EXPRESS OUR SINCEREGRATITUDE TO OUR CLASS CO-ORDINATOR AND SUJECTTEACHER PROF. RUPALIJAIN FOR HER GUIDANCE.

WE ARE ALSO GRATEFUL TO OUR CLASSMATESAND GROUP MEMBERS FOR THEIR CONSTANT SUPPORT.


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Be insured and be safe.


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What is insurance?

A risk managementsystem under which

risks of possiblefinancial loss isguaranteed through apayment of certainamount calledpremium.


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Micro insurance

It is the insurancewhich is provided tolower income people.

Mostly available indeveloping and underdeveloped countries.

People covered-under BPL (belowpoverty line).


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The main features

Same benefits at low premium. Less money to invest. weekly to yearly premium payments.

No medical exams. Enrollment with ID only. Simple procedures of claims.

Indemnity payment received within 24to 48 hours*.


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PEOPLE COVERED

Agricultural labours, Beedi workers, Brick workers, Carpenters, Cobblers,

Handicraft artisans, Handloom workers, Working women in hills, Lady tailors, Street wanders, Primary milk producers, Rikshaw pullers, Salt growers, Sugercane cutters, Washerlady,etc.


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Structure of microinsurance


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structure of micro

insuranceMicro level,

Meso level,

Macro level.


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Micro level

Includes policy holders & the microinsurers.

Distributes the product & administers the

policy. Can be single institution that carriers therisk.

For example actuaries are necessary to

assist the insurer in understanding therisk in relation to a product.


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Meso level

Consist of the financialinfrastructure needed to facilitate

the functioning of micro levelactivities.Includes training facilitates formicro insurance staff &managers.


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Macro level Establishes the rules under whichinsurers can operate & supervisesthreats.

Supervisory function legislation Plays a role in enhancing consumer

protection.


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Supply chain

Coveredlife

Policy holder

Deliverychannels

insurers

reinsurers


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The reinsurers

Insures the insurers against excessivelosses.

Generally does not play a large role in

Micro insurance as the claims are of sosmall amount.


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The insurer

Task is to carry riskand pay the claims.

Insurer can beregulated or

unregulated.


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Unregulated insurers Are often small or informal. SPANDANA in India-a very large

micro insurance financial organizationand Small Community Based (SCB) funeral

insurance schemes in Africa are the

examples.


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Delivery channels It is the individual or an organization that sells

the insurance policies.Religious institutions

Cell phonesRetailersUndertakersLotteriesPost officesEmployee and trade unions

Smart cardsBanksMFIs and NGOs


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Types of micro insurers Commercial insurers NGO insurers

Mutual insurers Community based organization and

other informal insurers

Parastatal insurers Takaful insurers


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Commercial insurers

Profit based insurers

Includes professional staff Focus on life insurance

NGO insurersNo profit on loss based

Non governed insurers

Provides largest number of healthinsurance


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Mutual insurers

Non profit ,member basedorganization

Regulated under non-insurance acts

Provides third largest share inproviding life insurance in Asia.


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Community based organizations Member based & member managed

organization

Non-professional staff

Geographical boundries


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Parastatal insurers Owned by government of the country

Weak management quality

Have to follow government policieswhich may affect workingssometimes


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Takaful insurance

Operated according to Islamicfinancial principles

Do not charge interests

Invests in non-interest bearingassets

Must return at least a portion of

earnings to the members.


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products

Health insurance, Life insurance, Property insurance,

Cattle insurance, Crop insurance, Hull insurance,

Credit life, Saving life, Endowment life, etc.


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simplepolicies, conditions, marketing,procedures

Understoodrisk pooling, procedures,coverage Accessiblepurchase, premium payments,

claims

Valuablematches needs, fair price andcoverage

Efficientfor insurers, delivery channels,policyholders.

Successful microinsuranceproducts must be S.U.A.V.E.


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Product list

Jeevan Mangal by LIC of India. Jeevan Madhur by LIC of India. Swayam Shakti Suraksh by Bajaj Allianz Life

Insurance. Max-Vijay by Max New-York Life. Grameen shakti by SBI. Bima bachat and Super bachat yojna by

HDFC life.


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c

General facts & current issuesIndia is among top 10 life insurance market in the

world today. MI established in year 2005.

Policies ranges 5,000 to 50,000.

24.8 lac of SHGs (self help groups) are involved inmicro finance.

Companies can earn about Rs. 1000 crores/year byproviding innovative plans to rural poor.

Out of nearly 70,000 bank branches 32,000 are inrural areas only.

These bank branches helps in selling insurance

products.


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In Shrilanka the micro insurance also

covers funeral expenses.

In Indonesia the micro insurance is soldthrough banks.

General facts & current issues


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THANK YOU .!

what is insurance srushti

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