SA-DHAN’SMICRO INSURANCE

EDUCATION PROGRAMME-

PRESENTATIONBY

UNITED INDIA INSURANCE COMPANY Ltd

TOPICS

• PRESENT SCENARIO OF MICRO INSURANCE FROM REGULATORY PERSPECTIVE

• LATENT NEED OF RURAL MARKET

• ROLE OF INSURANCE PROVIDERS

• COMPETENCE OF PRESENT PRODUCTS

INTRODUCING OURSELVES

UI is a leading General Insurance Company wholly owned by the Government of India.

It is the second largest non- life insurer in terms of Assets and Net worth.

More than three decades of experience in Non-life Insurance business

UI’S CREDENTIALSUI’S CREDENTIALS

•FINANCIALLY STRONG, LEADING GENERAL INSURERFINANCIALLY STRONG, LEADING GENERAL INSURER

•CONSISTENTLY GOOD CREDIT RATINGCONSISTENTLY GOOD CREDIT RATING

•COUNTRYWIDE PRESENCECOUNTRYWIDE PRESENCE

•TECHNICALLY QUALIFIED WORK FORCETECHNICALLY QUALIFIED WORK FORCE

•PIONEERS IN PRODUCT INNOVATIONPIONEERS IN PRODUCT INNOVATION

•IT-ENABLED COMPANYIT-ENABLED COMPANY

COUNTRYWIDE PRESENCE

1297 Offices spread across length & breadth of

the country as on 31.03.2009

1 HEAD OFFICE 24 Regional Offices360 Divisional Offices683 Branch Offices230 Micro Offices

Strong presence in all metros and in all states

A core team of underwriting & reinsurance experts at Corporate Office

A track record of settling large claims expeditiously

Issuing more than 1 crore policies and settling

8 lakhs of claims in a year

POINTS OF STRENGTH

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INTRODUCTION

• What is Micro Insurance• Protectionof Low Income people

against specific perils in exchange for a pre-specified payment determined in proportion and likelihood and cost of the involved and made in advance

• Simply put-Insurance services to low income people

• Micro Insurance is an integral part of financialservices for the poor and low incomepeople

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Why is micro insurance important

• Poor people are subject to many risks which are same as the non-poor

• Death of bread winner/Illness/Injury/loss of propoerty/natural disasters like droughts and floods

• Frequency fo risks greater and financial impact larger

• Ability to cope with these risks lower• The poor are highly vulnerable

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MARKETS

• In most developing countries including India, Markets are at an infant stage.

• Insurance penetration levels veryverylow

• Insurance Density Levels very very low

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Micro Insurance Markets Today

• Potential markets are considered large– About 4 billion live on less than $2 a day– In Asia alone 1.9billion in this category– Many of these people are potentialclients– High demand for Health and Life

insurance products– Also for Agricultural products– Small farmers in most countries cannot

afford to buy crop insurance– Poor and low income people can benefit

from a arnge of Insurance services

Micro Insurance Agents

• Can be a Non-Govt Organisation (NGO)

• Self Help Group• Can be appointed by

Agreement/Memorandum of Understanding specifying Duties& responsibilities in MoU

• Can work for one Life Insurer & One General Insurer

• Referral Fees/Agency Commission of % of the premium

Micro Insurance Agents

• Micro Insurance Agent to– DISTRIBUTE ONLY MICRO INS PRODUCTS– Collect Proposal forms– Collect self declarationfrom proposer that

he/she is in good health– Collect & Remit premium– Distribute policy documents– Maintain register of all Insured persons

including their family details– Assist Insured in settlement of claims

IRDA Regulations for Micro Insurance

• Policies can be issued covering

• Property/Health/Personal accident– Maximum Sum insured– Property Rs 30,000/-– Health Rs 30,000/-– Personal Accident Rs 50,000/-

Role of Insurance Providers

• Design and Develop products to suit the Rural and Urban Poor after studying the needs of the poor and also by interaction with NGOs/SHGs/Govt Agencies

• Appoint/Enter into Agreements with Micro Insurance Agents to sell insurance for Increased reach of Insurance Products to Poor

• Impart Training as prescribed by the IRDA to the nominated members of the NGOs/SHGs

• Bring under the Insurance Net the maximum number of Poor and fulfill the obligations to the Rural and Social Sectors

Competence of Present Products in General Insurance

• Most General Insurance Products in the Market are Rural Population oriented

• Considerable importance has been given to Personal Accident and Health

• Property of farmers/persons in Rural Areas are considered for insurance

• Vehicles like tractors/trailers used commonly are also covered by insurance

• Stock of Farm Produce as well as Livestock/Poultry can be insured

• POLICIES ARE TAILOR MADE BY UNITED INDIA TO SUIT THE REQUIREMENTS OF THE POOR

UI offers policies

MICRO INSURANCE COVERS FOR SMALL INCOME GROUPSWOMEN AND BPL FAMILIES

Micro Insurance Covers

• Covers available for Small and BPL Families– Uni Micro Insurance Policy- Package– Animal Driven Cart Insurance Policy– Cattle and Livestock Insurance Policy– Gramin Accident Insurance Policy– Tribal/Rural Accident Package Policy– Janatha personal Accident Policy– Bhagyashree Child welfare Scheme

Micro Insurance Covers

• Covers available for Small and BPL Families– Mother Teresa Women & Children

Policy– Rural Accident Policy– Rural Women’s Package Policy– Universal Health Insurance Scheme– Rajarajeswari Mahila Kalyana

Yojana

Personal Accident Covers

•Uni Micro Insurance Policy– Sec I- Fire

-Dwellings/Contents/Tools/Implements

– Sec II- Hospitalisation for Proposer– Sec III- Death and Permanent Total

Disablement– Sec IV- Cattle and Livestock

– Age Limit-1-3 Sec 5 to 70 yrs

Personal Accident Covers

– Gramin Accident Insurance Policy•Death•Permanent Total Disablement•Max Sum Insured- Rs 10,000/-

– Janatha Personal Accident Policy•24 Hrs Cover•Death and Permanent Total

Disablement•Max Sum Insured Rs 50,000/-

Personal Accident Covers

– Tribal/Rural Accident Package Policy•Caters to Needs of Tribals•Sec I Hut and Dwellings- Fire and Allied

Perils •Sec II Personal Accident –Sum Insured

Rs 10,000/-•Sec III Hospitalisation Expenses for

three diseases– Tuberculosis– Leprosy– Cancer

Personal Accident Covers

• Bhagyashree Child Welfare Policy– To mitigate suffering of girl child

following Accidental death of parent/s– Age of girl child-0-18 yrs parents age not

>60 yrs– In case of Death of parent- Rs 25,000/-

will be deposited in the name of the girl child in a PSU Bank

– Age 1-5 yrs- Rs 1200/- Yr Surviving parent/G

– Age 6-12 Yrs Rs 1200/- yr Surviving parent/G

– Age 12-17 Yrs Rs 2400/- yr Surviving Parent/G

– Age 18 Yrs Balance amount to Childs credit on attaining 18 yrs

Personal Accident Covers

• Mother Teresa Women & Child Policy– Sec I P A Cover- Prem

• - PTD RS 25,000/-/12,500 for the Insured Woman

• Accidental death of Insured Woman’s Husband-Rs 25,000/-

• Additional cover (optional)– TTD Rs 500/- per month subject to Max Rs

1500/-– Expenses for legal Divorce Proceedings Max rs

2000/-– Loss Damage to Household Goods Fire EQ etc-

Max Rs 2000/-– Additional Premium for the above three covers – Accidental Death of wife Compensation to

Husband 25,000/- Additional Premium

Personal Accident Covers

• Mother Teresa Women & Child Policy (contd)– Sec II Compensation to Child – Premium per child Max Two

Children– Age group 0 – 18 Yrs As per Bhagyashree

policy

Sec III Hospitalisation expenses Max Rs 5,000/-

• For Insured Person• Premium for extn to cover spouse• Premium for extn to cover 2 children

Personal Accident Covers

• Rural women Package Policy

PERSONAL ACCIDENT COVER– Personal Accident Cover Sum Insured

Death Rs 15000– PTD Permanent and Partial Rs

15000/7500– Trans Dead body Rs 300/- – Education fund Rs 500/ per child Max 2– Insured’s Spouse PA Cover Rs 15,000/-

– Loss of Income RS 250/pm Max

Hospitalisation Cover 2+2 Rs 5000/-Fire Cover for House/ContentsRs 5000/-

Personal Accident Covers

• Rajarajeswari Mahila Kalyan Yojana– Women Between Age 10-75 yrs– Personal Accident RS 25,000/-– Basic Cover Married women

• Death of Husband due to accident-100% CSI• Permanent total disablement following Accident 10%

CSI• Permanent Partial Disablement 50% of CSI

– Basic Cover Unmarried Woman• Death of unmarried woman due to accident- 100%

CSI• Permanent total disablement following Accident 10%

CSILoss of household goods following fire/flod/EQ etc- Rs

2000/-Legal Expenses for Divorce RS 2000/-Temporary relief during hospitalisation period-Rs 500/-

pm Max 3 months Max Rs 1500/-

HEALTH INSURANCE COVERS OFFERED BY US

• Health Insurance covers– Platinum– Gold– Senior Citizens

• Family Medicare Policy • Jan Arogya Bima Policy• Trauma Care Policy• Top Up and Super Top Up Policies• Universal health Insurance Policy

Universal Health Insurance Policy

•Low Cost Hospitalisation policy•Three Options Available

•No of persons Premium Subsidy•One Rs 300/- Rs 200/-•1+1+3 Rs 450/- Rs 300/-•1+1+3+2 Rs 600/- Rs 400/-

Universal Health Insurance Policy

COVERAGE

•Reimbursement of Hospitalisation Expenses •up to Max of Rs 15,000/- per treatment per year•Up to Max of Rs 30,000/- per family per year

•Personal Accident Cover of Rs 25,000/- for named Head of Family

•Fixed Financial Assistance of Rs 50/- per day subject to max of Rs 750/- if Breadwinner is hospitalised

• TAILOR MADE POLICIES FOR URBAN POOR

Urban Women Package Policy

Urban Women Package Policy I PERSONAL ACCIDENT COVER– Personal Accident Cover Sum Insured – Death Rs 50000– PTD Permanent and Partial Rs 30000/15000– Trans of body Rs 300/- – Education fund Rs 1000/ per child Max 2II LOSS OF INCOME FOR WOMEN MEMBER & SPOUSE– Loss of Income (foll Hospn) -Rs 100/- per day Max Rs 1000/-

per instance Rs 2000/- per year– Loss of Income(foll Acdt)--Rs 100/- per day Max Rs 1000/-per

instance Rs 2000/- /yearIII PROPERTY COVER– Fire Cover for Contents Rs 30000/-

incl Tools of Trade and StockIV- HEALTH COVER FOR ENTIRE FAMILY- AS PER UHIS

OUR RECENT ACHIEVEMENTS

• WE HAVE ALREADY COVERED ABOUT 24 LAKH WOMEN IN RURAL ANDHRA PRADESH AND 2 LAKH WOMEN IN URBAN AREAS AGAINST PERSONAL ACCIDENT INSURANCE FOR A SUM OF RS 50,000/-

• UNITED INDIA IS IN THE PROCESS OF FINALISING THE MOU WITH LIFE INSURANCE CORPORATION OF INDIA FOR A COMPOSITE PRODUCT

MAKING TOMORROW SAFER

THANK YOU