1. Social Protection for the Informal Sector…
…A Local Infrastructure.

2. Looking for the opportunities for an inclusive social security system in the current Indian situation…
1 Billion people without social protection
Only 100 millions people have some kind of social protection
94% of the total labour force is part of the informal economy sector
Small/micro businesses, Rural agriculture, 92% two years ago.
GoI has money for financing social protection , is interested in equitable basis, wants a certain visibility of the action.
Gvt Health Expenditures to evolve from 1% to 3% of GDP
Co financing strategies per product or for BPL.
NGOs, MFIs, SHG Federations, Cooperatives, Trade unions, Gram panchayats are the only organizations reaching the informal sector.
Only 10 million people have access today to some social protection through such entities
Free insurance market, innovative microinsurance, lack of information balance

3. Challenges
How to bring social protection to the informal sector through an inclusive mechanism?
How to ensure an effective risk management system that involves developing local ownership and responsibility?
How to build communities management capacities or resilience when facing micro or macro risks?
How to finance a social protection sustainably even in the health domain?

4. Risks Health, Lifecycle Accidents, Death,
Monsoon failure, Fires, Floods
Frequency
Epidemic, Riots, Floods, Landslide
Tsunamis, Earthquakes,
Cats
Ask participants to group and to do an inventory of health problems that occurred in their lives in the past year.
Simple
Medium
Complex and Expensive
Ask them to count the population.
Costs

5. Risks and mitigation strategies
Education, Information, Prevention
Savings Assets accumulation, small pooling
Frequency
Insurance
Local Pool
ReInsurance, Big Pooling
Ask participants to group and to do an inventory of health problems that occurred in their lives in the past year.
Simple
Medium
Complex and Expensive
Ask them to count the population.
Costs
Costs

6. The basic social security product for basic rights
Individual benefits requiring a whole group solidarity
Solidarity sustainability requiring individual responsibility

7. Indian CHALLENGE: Setting up a sustainable social security system in a context of free and competitive insurance market

8. Social Security Markets logics between responsibility and solidarity
Profit Logic
Tough not to exclude
Tough to sustain financially
Social Logic

9. Which entity to enroll while respecting individual freedom and social inclusion?
Which group type includes a sample of the whole age pyramid of the population?
Which group of individual may decide to contribute together and get it done?
Which group size can control its individuals when they have a claim ?
Which group type may be able to consider social security as another type of infrastructure to be handled with a subsidiarity Principle?

10. From Self Help Group to Village Social Security Fund: Exploring the analogy from finance to insurance
Inclusive risk management
Ownership
Small size and subsidiarity
Governance responsibility
Solidarity building

11. Subsidiarity principle
VSSF
Subsidiarity principle
Agregator
VSSF
Insurer
VSSF
Agregator
VSSF
How to manage the risks before.
Everybody wants drugs because they often spend on it.
How to reduce the bill? Is it insurance?
Costs
Frequency

12. VSSF is the decision point & offers various solutions

13. Enrolment Strategy

14. Health Products choice
1: Village Mutual + high insured layer
2: Insurance only
Everybody or Nobody, No exclusion, no age limit,
Pre existing diseases covered
Co financing from government for the BPL
Various quality of service for various contributions under study.

15. Model Operations Highlights
1-Village Security Fund En-bloc Enrolment
7- Social Protection Service Provider
6- Risk Bearer / TPA
2- Implementing Organization
3- Federal Organization Social Security Fund
3- Federal Organization Social Security Fund
4- Co financing Partners

16. Model Organizational Highlights
Coordinates Resources
2- Collecting/Servicing Field Agents
Choose, elect and Mandate
3- Representative to Federal Security fund
Joins and Mandates
Tender and Contract
3- Federal Social Security Fund Representatives
1-Village Social Security Fund
Consolidates, request co-contributions
6- Risk Bearer
7- Social Protection Service Provider
4- Co financing Partners

17. Public Private People Partnership
4- Co financing Partners
Choose, contract, control at their level
2- Collecting/Servicing Agents (NGOs, MFIs..)
3- Federal Organization Representatives
6- Risk Bearers (Insurer…)
Transparency, Audits, profit sharing
7- Social Protection Service Provider (hospitals…)
1- Communities

18. SWOT

19. Roles… Participation, Solidarity, Health risk Governance,
Administration services, Negotiation with HCP
Policy Advocacy, Data Consolidation
Negotiation framework, negotiation with insurers toolbox sharing,
Contribution, claim Control,
Communication, negotiation with HCP
Data Consolidation
Negotiation framework, negotiation with insurers training, reporting,

20. Contact GTZ HSS New Delhi B5/1 Safdarjung Enclave +91 11 4603 6677
FX Hay:
Nishant Jain: