Community Managed Micro Insurance

Andhra Pradesh

Paragigm Shift

  • From traditional model to Community Managed Initiatives is a remarkable change in the history of micro insurance industry in India. as
  • There is a continuous intermediation between the insured members and the insurance company through CBO –Zilla Samakhya which is functioning as nodal agency.
  • The products /schemes are affordable and relevant either low cost or not cost as in the case of AABY.
  • Member education and awareness is taken care of by the CBOs themselves.
  • Simple documentation in the language of the community which they can understand and done at their door steps.
  • Establishment of Call Centres run by the community, employing the services of social capital like Bima Mithras for payment of interim relief – built the trust among the community.


  • With the active participation of the community / CBOs, partnership with Life Insurance Corporation of India SERP timely facilitation and the optimum use of IT the CBO mode has become relevant in the State.

Community Involvements:

  • At the time of awareness, emnrollment, collection of premium, distribution of certificates, claim intimation, claim settlement, follow up after the claim settlement etc
  • Enrollment at their door steps, no anxiety in claim settlement i.e., less cumbersome documentation process (only Age proof and Death Certificate of the Village Local Body), Speed of claim settlement process through Bima Mithra, Intermediation by the CBOs (VO/MS/ZS) in the event of delay in service, Call Center concept immediate payment of solatium / interim relief of $103 for meeting the funeral expenses, On line submission and settlement of claims and provision of Scholarships for their children made the community very comfortable and confidence in their of systems.
  • CBOs reached out faster and in a more credible manner and low administrative charges .5 $