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India: Insurance for the poor

Part of the concept of "decent work" is also the social security in the case of illness or death. For the most part of the Indians this constitutes a completely new experience.

It is only with time that they understand the high value of such a life assurance, mostly then when a family member dies and the relatives do not stand moneyless from one day to the next but are paid a premium.

In order to ensure the day-to-day risks of its members Kolping India sells micro-risk temporary life assurance since 2003. This is possible primarily because the association is solidly rooted in the region through its savings and credit approach. The rural population accepts and trusts Kolping which is not yet the case with the big insurance companies.

In the regional organization of Chennai for example with the "Life Insurance Corporation of India" a life assurance is offered that is especially designed for Kolping members. Herein the members pay the yearly sum of 100 rupees (approx. two Euros) as a premium. The Indian Central Government likewise pays the amount of 100 rupees for every person assured as a state subsidy. Later payments are made due to the natural death of a person assured, the death of a policy owner or one’s inability to practice one’s profession due to an accident.

Martin J. Rüber