Social Security Scheme of IRIA (SSS – IRIA) Dr. Suresh H. Saboo Vice President, IRIA

Introduction Social and financial security is needed by everyone Social and financial security is needed by everyone Many other medical organizations like FOGSI, IMA – running similar scheme very successfully Many other medical organizations like FOGSI, IMA – running similar scheme very successfully IRIA – A big and strong organization IRIA – A big and strong organization Such scheme will increase our members Such scheme will increase our members

Salient features Scheme only for life members Scheme only for life members ONE TIME PREMIUM ONE TIME PREMIUM Premium increases with age Premium increases with age Death Fraternity Contribution (DFC) – required every year, depending on the number of deaths Death Fraternity Contribution (DFC) – required every year, depending on the number of deaths 1000 members required in the first year to make it reasonably viable 1000 members required in the first year to make it reasonably viable No death benefit to any member in the first year of scheme (Accidents – excluded) No death benefit to any member in the first year of scheme (Accidents – excluded) Rapid settlement of death claims (Within 7 days) Rapid settlement of death claims (Within 7 days)

Portfolio management The money will be invested in The money will be invested in

Proposed scheme

Premium table for becoming a member of the scheme Age group Reg. fees Basic premium Total <

Projected figures in first year of scheme

Approximate interest Total collected amount:56,00,000 Total collected amount:56,00,000 6%: 3,36,000 6%: 3,36,000 Death claims (Assuming 2 accidental deaths) 1,25,000  2 :2,50,000 1,25,000  2 :2,50,000

Balance sheet (at the end of first year)

Second year of scheme Considering 300 new members

Approximate interest Total collected amount:55,86,000 Total collected amount:55,86,000 6%: 03,35,160 6%: 03,35,160 DFC (Assuming 2 accidental deaths)

Death claims in Second year Death claims 1,25,000  7 :8,75,000 1,25,000  7 :8,75,000

Balance sheet (at the end of second year)

Third year of scheme Considering 200 new members

Approximate interest Total collected amount:67,96,160 Total collected amount:67,96,160 6%: 04,07,770 6%: 04,07,770 DFC (For 7 deaths in previous year)

Death claims in Third year Death claims 1,50,000  10 :15,00,000

Balance sheet (at the end of Third year)

Fourth year of scheme Considering 150 new members

Approximate interest Total collected amount:74,63,930 Total collected amount:74,63,930 6%: 04,47,836 6%: 04,47,836 DFC (For 10 deaths in previous year)

Death claims in Fourth year Death claims 1,75,000  6 :10,50,000

Balance sheet (at the end of Fourth year)

Fifth year of scheme Considering 150 new members

Approximate interest Total collected amount:89,36,766 Total collected amount:89,36,766 6%: 05,36,206 6%: 05,36,206 DFC (For 6 deaths in previous year)

Death claims in Fourth year Death claims 2,00,000  7 :14,00,000

Balance sheet (at the end of Fifth year)

Option of merging with LIC group insurance Insure member for a pre-decided amount say 1 or 1.5 lac Insure member for a pre-decided amount say 1 or 1.5 lac Premium rate – Age of the person Premium rate – Age of the person Upto 40 yrs of age – Rs. 350/ year Upto 40 yrs of age – Rs. 350/ year > 45 – Rs. 530/ year > 45 – Rs. 530/ year The scheme is administered through association The scheme is administered through association Association is the master policy holder Association is the master policy holder Premium payment and settlement of claims through association Premium payment and settlement of claims through association

Implementation of LIC group insurance Association provides list of members with date of birth Association provides list of members with date of birth LIC will inform the premium amount LIC will inform the premium amount Association will fill up the form and the master policy is issued Association will fill up the form and the master policy is issued Scheme is renewable every year Scheme is renewable every year

Summary NSS is viable, needs systematic planning and implementation NSS is viable, needs systematic planning and implementation 1000 members – realistic target 1000 members – realistic target Office bearers should not be changed for first five years Office bearers should not be changed for first five years We have benefit of good office structure We have benefit of good office structure LIC group insurance – another option LIC group insurance – another option Fund investment in proper portfolios is crucial Fund investment in proper portfolios is crucial