MICRO HEALTH INSURANCE THROUGH SELF HELP GROUPS

An Overview of Micro Health Insurance The accessibility of the micro-health insurance scheme is the poor-centered and covers multi-risks of the poor in rural areas. Policy recommendations argue that microfinance groups are the most reliable and convenient means to deliver the micro-health insurance products to the poor in rural areas, with limited transaction costs and minimized information asymmetries. Risks are of different types -personal, occupational and at the family level. Risks could be due to loss of property, loss of life, sickness, accidents, etc. The upshot of such risks brings mental, physical and financial stress on every human being, especially the poor. Throughout these unforeseen events, they are unable to earn their bread, leave alone spending for hospitalization or for consultations or medicines. In such a condition, the poor have to withdraw their savings, if any, or borrow or sell their assets. Insuring against these risks makes these people bear the large uncertain losses with the certainty of a small and regular payment, thereby reducing their vulnerability. Conventionally, for a long time, many Microfinance Institutions (MFIs) have been centered more around credit than finance. However, more recently, there is a paradigm shift in the approach of these institutions, from `credit only services' to `credit plus services'. Of the many services provided by the MFIs, micro-insurance is considered as one of greatest innovations to reach the low-income people who are vulnerable to a number of risks. MICRO HEALTH INSURANCE PROVISION IN ANDRA PRADESH

Andhra Pradesh Rural Poverty Reduction Project

The state government of Andhra Pradesh built on its momentum to start a womens literacy movement. In 2000, with World Bank support, it expanded this program as a thrift based program where women could make small savings, revolve their own resources, and meet their families critical consumption and food needs. The program, earlier called Velugu and now called the Indira Kranti Patham, has since evolved into a movement for the all-round empowerment of poor women - social, legal, political, and economic. The World Banks Andhra Pradesh Rural Poverty Reduction Project supports the program. It promotes women's social, economic, legal and political empowerment to reduce poverty among the poor and the poorest of the poor.
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The World Bank project has helped take the women's Self Help Group movement to all 22 districts of Andhra Pradesh. It has also become the model for livelihood programs in other states too, including Tamil Nadu and Bihar. Health Insurance for the Poor in AP Over 21,000 households have been covered with health insurance on a pilot basis. The community managed risk fund aims to provide quick financial support to meet families health expenditure, including during emergencies. 1.2 million women SHG members have purchased life insurance cover. MAHARASHTRA
Name of the scheme: HEALTH INSURANCE SCHEME FOR WOMEN, MAHARASHTRA

Subject area: Health Financing Objective: Mobilising community participation

The HALO Medical Foundation (HMF) trains and works with women to provide reproductive and child health (RCH) services to the rural population in Osmanabad district. Bharat Vaidyas (as these women are called) provide services for a nominal fee that she collects directly from the community. One of the activities undertaken by these women is to form self help groups and womens savings groups. Loans are given to members of the savings group from the funds collected. It was noticed that 25% of loans taken by the women was for medical treatment. The scheme covers members between 18-58 years for the following: (i) Hospitalisation expenses inclusive of maternity extension for first two pregnancies (excluding standard exclusions under Mediclaim) up to INR 5000 (ii) Natural Death INR 20000 (iii) Partial Permanent Disability INR 25000 (iv) Total Permanent Disability INR 50000 (v) Death due to accident INR 50000

Additional benefits under the scheme include: (i) Scholarship to children of insured women who are studying in classes IX to XII @ INR 1200 per year. (ii) Annual health checkup camp at the village by two doctors (one a GP and the other a 2

gynaecologist), with free routine blood and urine tests. (iii) 50% concession on the investigation charges at Halo Medical Foundation Diagnostic Center, Anadur. (Ultrasound, X-Ray, all blood chemistry and urine tests) (http://hsprodindia.nic.in/searnum.asp?PNum=99)

Govt launches group life insurance for self-help group members (news)
TNN Jan 6, 2011, 12.12am IST HYDERABAD: In an effort to reassure bankers for improving lending to self-help groups (SHG) further, the state government has introduced an insurance scheme against loans disbursed to Indira Kranti Patham SHG members. With micro credit coming under severe pressure for a variety of reasons, including the strongarm tactics employed by micro finance institutions in rural areas, the state government has decided to encourage both bankers and SHG loanees through this unique group life insurance scheme against loans. Officials said this low-cost loan insurance product would minimize the risk to SHG members. Officials said at least 1.1 crore members in 9.75 lakh SHGs had accessed bank credit to the tune of Rs 22,000 crore since the advent of the SHG-bank linkage. It was pointed out that on an average there have been 35,000 deaths of SHG members in a year in the age-group of 18 and 59 years, leaving outstanding loans to the families. Such untimely deaths not only impoverished the families dependent on them, but also destabilized the SHGs by putting unsustainable burden on other members.