Professional Documents
Culture Documents
AGRICULTURAL SECTOR
SUJITH SASIDHARAN
SRM SCHOOL OF
MANAGEMENT
OBJECTIVES OF THE STUDY:
MICRO LEVEL
POLICY
HOLDERS
MICRO INSURANCE SUPPLY
CHAIN
DELIVE COVE
REINSU INSURER RYCHA POLIC RED
RER NNEL Y
HOLD LIVES
MUTUALS
CBOs
ICICI
BAJAJ ALLIANZ
BAJAJ ALLIANZ LIFE LAUNCHES
MICRO INSURANCE PRODUCTS
Alp Nivesh Yojana – endowment plan:
Life cover and Maturity benefit equal to sum assured +
vested bonus
Guaranteed Surrender Value
Avail additional benefits including Accidental Death Benefit
& Accidental Permanent Total / Partial Disability Benefit
MANAGEMENT
WEATHER SOIL
FACTORS
AFFECTING
CROP
GROWTH &
PESTS YIELD
AGRONOMIC INPUTS
EVOLUTION OF
:MICROINSURANCE IN INDIA
Main Features
Insurance simplified by the regulator for ease of
distribution;
No licensing and less stringent training norms (only 25
hours) for micro insurance agents.
Servicing of micro insurance products open to other
existing intermediaries also;
Single window policies and service possible as per the
regulations and a non-life insurer can tie- up with a life
insurer and vice-versa to offer composite insurance
product (life and non-life) to the low-income people.
The IRDA regulation allows the MFIs, NGOs and SHGs
and these have the potential to become the best ‘Rural
Insurance Advisors’ on account of their proximity and
:The comparison
Standard insurance Micro insurance for agriculture
Targeted generally at the urban wealthy or Targeted at low-income small and marginal
.middle-class clients farmers, some living along or even below
High level of awareness. .poverty line
Markets are near; accessible and familiar. Low levels of awareness.
Most companies are aware of their specific Markets are distant and considered
insurance requirements and bundling not inaccessible due to vast geographical
necessary. stretch and poor infrastructure and
Ticket size of premium is high. connectivity.
Globalized. Not insurance/finance literate.
Farmers see insurance as an avoidable
Consumer awareness on insurance as a risk means of additional expense with uncertain
management tool is rising. outcome
Low ticket size.
Localized consumers need vernacular
documents
HOW TO MAKE MICROINSURANCE CATER TO THE
NEEDS OF THE FARMERS AND YET BE PROFITABLE
?FOR THE INSURER
Simplifying underwriting and claim
settlement procedures, introducing
easy to understand and easy to
market and service new integrated
micro insurance products.
Making premium payment plans
flexible (installment facility)and
simplifying premium collection.
Designing long-term policies where
necessary, to coincide with the
loaning.
Micro insurance may prove to be most
effective if it complements micro
finance and the insurance period may
be made to coincide with the loaning
:FARMER’S ISSUES
RURAL CHALLENGES