Community Managed Micro Insurance

Andhra Pradesh
Anil Kumar’s mother was a member of local SHG. While the going was smooth, his mother took a loan from the group twice totaling Rs. 30000 and invested the same in the family grocery shop of her husband Sankar Rao. The sale counter of the home-based shop was generating modest income to sustain the family of four (father, mother, son and daughter). Anil’s father had enrolled into the AABY (Aam Admi Bima Yojana) scheme in 2008 and paid two installments of service charge as required by the insurance scheme. The serenity of the family and business were disturbed when Sankar Rao, the main bread winner of the family died of liver damage leaving the family in lurch.

At death he was just 40 years of age. It was the initial period of the scheme and the norms of the scheme were not clearly digested by the members. And hence they delayed informing the call centre and local Samakhya.

The death of Anil’s father was brought to the notice of the stakeholders concerned after three days. Upon receipt of the news the local Samakhya released Rs. 5000 rupees within the next three days. This immediate help from the insurance scheme revived the hopes of the family members

Acting on the advice from the local Samakhya members, the family of Anil Kumar submitted the death certificate, insurance bond issued in favor of his deceased father along with a copy of the family ration card. His family received Rs. 25,000, the insurance sum within next 45 days.This help was manna from the insurance scheme. The amount was duly invested in the grocery shop and consequently the business started picking up. It gives the family a surplus of Rs. 5000 today. “We are content” is all that Mr. Anil Kumar says. He proudly proclaims that his shop is now converted into a publicity hub. He asks every visiting customer to go, meet and get enrolled into public insurance schemes. He always tells people, “We do not know what is in store for us in the coming days. It may be an unexpected death or unwelcome misery. You please be prepared. There is nothing to lose in enrolling, but many things to gain after enrolment.” Anil Kumar and his mother are canvassing for the scheme in the entire village.

For them, the insurance schemes are the ideal substitutes in the event of loss of a bread winner in the family. The case of Anil Kumar’s family repeatedly tells one story that the engines of social change after the introduction of public insurance schemes, especially among the poor families, have picked up a natural social velocity and they are unstoppable now. Agony of the poor and quest for alternatives to substitute basic minimum of human needs are currently the major social topics for discussion in the village. It implies that the government needs to augment its vision of social security mechanism through SERP.

  • Name : Ch. Anil Kumar Swamy
  • District :Krishna
  • Mandal : Bapulapadu