VIMO SEWA SEWA’S MICROINSURANCE PROGRAMME FOR WOMEN WORKERS OF THE INFORMAL ECONOMY

SEWA - A trade union of 1.1 million women

SELF EMPLOYED WOMEN’S ASSOCIATION Work security Health care Income security Childcare Full Employment Social security Insurance Housing Food security Pension Economically Individually Self Reliance Collectively Decision making capabilty

History of VIMO SEWA Started in 1992 from SEWA Bank Collaborated with insurance companies from start. Need based composite package for women Initially insured 7000 members of SEWA Evolved according to the needs of insured

Evolution of the Programme 1992 – Inception 1993 – Husband’s life insurance introduced 1994 – Delinked health insurance from ins. Co. 1998 – Decentralisation, delinked for asset ins.

Evolution of the Programme (cont.) 1999 – A separate, autonomous unit, Vimo SEWA formed, plan for insurance cooperative 2000 – Husband’s health insurance started, expansion out of Gujarat 2001 – High increase in membership, linkages with insurance co. again for non life ins. 2002 – Computerisation started

Evolution of the Programme (cont.) 2003 – Tie ups with partners started Action Research Started with LSHTM Organised National level microinsurance workshop 2004 – Children health insurance introduced Tie ups with other NGOs 2005 – Developed in house S/W

Evolution of the Programme (cont.) 2006 – Cashless system introduced in the city 2007 – Quarterly collection started 2008 – Social security teams were integrated Monthly collection started Claims servicing was fully computerized

Reaching The Poor Member VIMO SEWA Insurance Cos Education Product Design Marketing Risk Carrier Claims servicing Data maintenance Research and monitoring Policy advocacy

Outreach of VIMO SEWA 14 districts in Gujarat 9 states in India 5 NGO Partners

Current membership Women: 63,386 Men : 19,252 Children: 18,926 Total : 1,01,564

Current Products of VIMO SEWA Life Health House and Assets Accident Rainfall 17 schemes

Premium Collection House-to-house Through self-help groups Annual – quarterly – monthly Fixed deposit Annual pay

Claims servicing Member VIMO SEWA Insurance Company Aagewan (local leader/insurance promoter) Prompt reimbursement

Claims Payout -1992-2008 Product No of Claimants Amount Paid in Rs. Life 6,373 3,05,55,110 Health 27,562 4,03,70,928 Asset 17,596 1,98,39,473 Total 51,531 9,07,65,511

Lessons Learned Working with Insurance Cos Life : LIC, AVIVA,OMKM, Bajaj Allianze General : UIIC, NIA, NIC, ICICI, Reliance Effective Tools for collaboration with Insurance Cos : Credibility of the organisation Systems and mechanisms Human resources Transparency

Lessons Learned (cont.) Life : simple term policy is easy to operate Endowment product requires long term commitment, complex Health : Linkage with health programme enhances the viability of the programme It creates demand for government health services It increases health seeking behavior amongst poor specially women

Lessons Learned (cont.) Insurance is an essential economic support to workers during crises. In sixteen years, 51,531 women got over Rs. 9.07 crores by way of claims.

Lessons Learned (cont.) Need based, affordable, bundled products Community based doorstep and one window quality service Linkages with other services and economic activities Linking insurance to other financial services (savings and credit) promotes long-term insurance coverage

Lessons Learned (cont.) Insurance by and for workers, encourages their organizing and contributes to their economic security. A combination of increased outreach (especially to families and entire communities), increased renewals and cost containment leads to viability.

Challenges 1. Viability – which depends on: Increasing Outreach Spreading risk (other states), Family coverage, deepening Cost reduction 2. Education 3. Product development Balance between social and business objective

Future Action Increase outreach Work with MFIs, NGO partners Partner with government’s health programme. (RSBY) Multi-state cooperative (VimoSEWA) with reduced capital requirement

THANK YOU SEWA social@sewass.org vimo@sewass.org www.sewainsurance.org