Community Managed Micro Insurance

Andhra Pradesh

Objective of the Micro insurance for the Poor

Need:It is gauged that more than 250 poor people who are the head or bread winners of the SHG members’ families are dying every day in the state of Andhra Pradesh. Eventually, the rural poor families face enormous problems, if they lose their bread winner due to untimely death. The loss of head or bread winner leaves the family in a shudder to fight for survival. Moreover, the family comes under sever stress and shock, both psychological and economic. As an upshot the households end up in a disastrous situation and is flung into irrecoverable abject poverty

Vision:The Self Help Groups and their federations envision that even the poorest of the poor, including the landless agricultural laborers, deserve an access to relevant and affordable insurance and social security nets by massification and be protected from risks on death/disability and to secure a dignified life to SHG women by providing income security in their old age and to provide financial support for their children for continuation of education by means of scholarships.

Mission: Is to empower the Self Help Groups and the Community Based Organization (CBOs) to play an active role in the implementation of social security interventions, to reduce people’s vulnerabilities through diversified social security measures to protect their income and asset base, by creating an enabling environment for self management by the community itself with appropriate project facilitation.

  • To initiate relevant and affordable insurance products /schemes by massification to protect the poorest of the poor and landless agricultural labourers from risks on death and disability.
  • To provide credit shield insurance to all the eligible and needy SHG women so as to perpetuate the institutions of the poor as well as to protect her dependents.
  • To manifest that every person is insurable and their children need to be financially supported for education through scholarships.
  • To provide social security and dignity to the to the SHG women in their old age under Anna Abhaya Hastham -a co-contributory Pension Scheme for SHG Women.
  • To provide livestock insurance to all their milch animals, as livestock is the primary livelihood activity as well as asset for resource poor households in rural AP.
  • To achieve transparency, accountability and to provide quick and quality services.
  • To co-ordinate across various departments to ensure that none of the eligible and needy persons are deprived of the welfare schemes meant for poor.

  • To provide insurance cover to 52 lakh landless agricultural labourers under Aam Aadmi Bima Yojana (AABY)
  • To provide insurance cover to 1 corer SHG women under Janashree Bima Yojana (JBY)
  • To ensure all the eligible SHG women are enrolled into Anna Abhaya Hastham, a co-contributory pension and insurance scheme.
  • Ensure that all the enrolled members in the Anna Abhaya Hastham contribute regularly towards the scheme.
  • To provide cattle insurance to 10 lakh milch animals.
  • To provide group insurance SHG member against loan availing from the banks so as to project the institutions of the poor and to provide comfort to the family members from repayment of her loan.
  • To ensure the continuity of education for all the eligible children of the insured members by financially supporting with scholarships.
  • To establish well furnished web-based Call Centres with IT support to ensure effective and efficient service delivery.
  • Ensure high quality decision support/monitoring/tracking system using the available IT resources like Web, SMS facilities.
  • To establish Central Record Keeping Agencies (CRAs) in all the 22 District to safeguard the physical and digital data for a longer time.
  • To develop and position a cadre of sensitive support social capital called ‘Bima Mithras’ who are an active SHG members to provide ‘Quick and Quality Services to the insured community of members at their door steps through Call Centres and Bima Mithras
  • To create awareness to the community to access the insurance services by way of enabling them to report the demise of any insured person.
  • To harness the provisions of National Social Security fund for all the eligible members.
  • To develop vibrant CBO structure –sub-committees at Zilla Samakhya, Mandal Samakhya, Village Organization and SHG level.
  • To empower one member from all the SHGs in the State of Andhra Pradesh as ‘Social Security Point Member' to coordinate with MS /Call Centre with regard to all the social security aspects /issues pertains to the rest of the members of her SHG, like enrolment/ renewals/ distribution of scholarships / pensions /Claim settlements / procurement of documents etc.