1

Part 3

• Chapter 7: Employee Benefits, Pensions, Annuities

• Chapter 8: Micro-insurance

• Chapter 9: Health Insurance

Chapter 7

Employee Benefits, Pensions and Annuities

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Life insurance plans for employees

Statutory Voluntary

EDLI Group Term

Group InsuranceSavings Scheme

Employer employeePayroll deduction

4

Retirement Plans for employees

Statutory Voluntary

EPF Group TermGroup TermSuperannuation

Gratuity

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Voluntary Individual Pension Plans

• Guaranteed return Pension Plans from life insurance companies

• Unit Linked Pension Plans from life insurance companies

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Annuity Options in Pension Plans

1. Lifetime annuity without return of purchase price

2. Annuity for life with a return of the purchase price

3. Lifetime annuity guaranteed for a certain number of years

4. Joint life/ Last survivor annuity

Chapter 8

Micro-insurance

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Features of Micro-insurance

• low cost transactions on a voluntary basis for individuals of a group

• low-net-worth clients

• operating through networks of self help community organizations (or directly driven by government or corporate)

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Regulations• IRDA issued the Obligations of Insurers to Rural or

Social Sectors Regulations in the year 2000.

• These regulations specify that a portion of the entire new business of a life insurance company has to belong to the rural and social sector.

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Rural and Social Sector

• The regulations define the rural sector as a place that as per the latest census has a population of not more than five thousand, a density of population of not more than four hundred per square kilometer; and at least seventy five per cent of the male working population is engaged in agriculture.

• The social sector is defined as an unorganized sector, informal sector, economically vulnerable or backward classes and other categories of persons, both in rural and urban areas.

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Marketing to Rural market

• Build trust and acceptance • Simple products• Simple claims process• Local language and cultural

sensitivity in marketing activities• Use of street theatre and posters

Chapter 9

Health Insurance

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Private Health Insurance Penetration

Percentage of population covered by private health insurance

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

1991-92 1995-86 1999-00 2003-04 2005-06

Year

Per

cen

tag

e

Data from Bearing Point, Inc. for USAID, 2008

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Types of Health Insurance

• Mediclaim type• Hospitalization Cash• Critical Illness• Specific Conditions cover• Health fund & hospitalization cover

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Role of Third Party Administrators (TPA)

• Performs tasks related to administration of claims, managing hospital networks and maintaining records

• Manage the claims process. Collect all bills, reimburse and send documents for the consideration of claims to the insurer.

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Benefits of TPA• A one-stop solution

to the policyholder for all requests and service

• Cash-less hospitalization through membership cards issued by the TPAs

The End