Community Managed Micro Insurance

Andhra Pradesh
Founded in 2003, it has been a learning experience for the VO that has 15 Self Help Groups under its jurisdiction. The SHG movement has brought about social transformation and prosperity of the downtrodden section in the village located close to famous Kanipakam Siddhi Vinayaka Temple.
An interaction with Munipireddygari Rajeswari, the 55-year-old president of the VO and Vallaramathi, the confident looking secretary, revealed that empowerment of women in the rural areas of Andhra Pradesh had completed a full circle.
The examples and incidents, these two leaders narrated would put the educated people in the urban areas to shame. On their achievements, the duo say, “It sounds odd if we boast about our activities,” Mrs. Rajeswari said pointing to the other thrift group members assembled at the village samakhya office. “They are the right persons to testify the manner in which they were benefited by the VO,” she points out.
Explaining the functions of the VO, Mrs. Rajeswari says they hold a meeting twice a month where the needs of individual members are noted. “The requirements are then posted to the mandal samakhya from where we draw money from the Community Investment Fund to meet the needs of members,” she explains.
The VO has set its eyes on meeting the needs of all the members. Their priorities include: provide loans to the children of members to pursue education, complete construction of houses, buy milch animals to enhance family income, render financial help for marriages, take up agriculture farming to buy farm inputs, start petty trade and provide assistance for medical expenses.
Ask Mrs. Rajeswari and Mrs Vallarmathi about their significant achievements, they are ready with answers. “The Indiramma housing scheme was a boon for many homeless poor in the rural areas. The amount sanctioned by the Government was inadequate to complete the construction of house. We identified the SHG members, who fell short of money to complete construction. Loans ranging from Rs. 20,000 to Rs 30,000 were released. It gives us satisfaction to see some of our members borrowing money from the VO and completing the construction works, ” they add.
A milk revolution is on in the village, with the VO taking initiative to provide milch animals to the members. “In 2005, we decided that buying milch animals could sustain the family income. With Rs. 10,000 each, we purchased cows for members. They took two loans- to buy the milch animal and the other to repay the loan,” Mrs. Vallarmathi reveals.
Mrs. Rajeswari says the Mandal Samakhya was instrumental in setting up two Bulk Milk Chilling Centres in the mandal. “All the members are selling milk at the rate of Rs. 16-17 per litre to Balaji Dairy,” she discloses. “Today, our members are able to sell 100 litres of milk to the Balaji dairy. Selling milk boosts our income,” she notes.
The VO derives lot of satisfaction when the members’ children join educational institutions. The VO has helped by advancing loans to the tune of Rs. 10,000 to Rs. 20,000 to the needy members to pay their children’s fee.
For instance, Ravichandra, whose mother is an SHG member was sanctioned a loan of Rs. 20,000. He is in his degree final year. Similarly, Jhansirani was given the same amount to continue her education.
Performing the marriages of the needy girls is a priority for the VO. “Yes, we have come to the rescue of poor women members, who were worried about marrying off their daughters. We did our bit by giving Rs. 10,000 to Rs. 20,000 to bear the financial burden on the eve of marriage,” Mrs. Rajeshwari said.
Some enterprising women members were given loans ranging from Rs. 5,000 to Rs, 10,000 to start small businesses in the temple town of Kanipakam. “With the loan amount, at least three SHG members have started selling coconuts near the temple. They are assured of at least Rs 1,000 every day. The confidence with which they conduct business gives us immense satisfaction and happiness,” Mrs. Vallarmathi observes.
(The interaction took place at the Village Samakhya office in Chinnakampally village of Irala mandal in Chittoor district. The VO president Munipireddygari Rajeswari and secretary Vallarmathi besides the District Project Manager Prasada Reddy were present. Members of the Self Help Groups were also present).

  • Name : Rajula Muniamma Chinakampally Village
  • District :Chittoor
  • Mandal : IRALA