Developing Inclusive Insurance Sector (DIISP) Project: The project goal is to reduce the vulnerability and improve welfare of the poor through improved access to reliable and affordable institutional risk mitigation services by micro insurance, building upon the existing risk mitigation services. The objective of the project is to protect the livelihoods of poor households, especially women, from risks such as accidents, illness, theft or natural disasters- to secure their welfare and productive or unproductive assets through the development of low-cost inclusive insurance services by micro insurance.
Project activities are divided into four components.
1. Microcredit Insurance: VERC is providing Microcredit Insurance services to the borrowers from October 2013. Under this insurance policy till 30 June 2015 number of 1,30,270 borrower took policy and premium collected was TK. 19.85 million. Claim paid was TK. 6.23 million among 375 policy holders and fund balance was Tk.13.62 million.
2. Hospital Cash Benefit Insurance (HCB): Under this component policyholder and his/her insured family members are entitled to receive hospital cash benefit if any insured person is hospitalized for more than 24 hours. In that case Tk. 200 per day is given as cash benefit for a maximum of 30 days, excluding the first day. Policy holder has to pay Tk 250 as premium for one year to obtain a HCB policy. The HCB policy is optional for the members and yearly renewable. Up to June 2015, the number of policy holders is 1020, the amount of premium collected was TK. 2,55,000. Claim paid was Tk. 1,24,950 and the fund balance is Tk. 1,30,050.
3. Paramedic Services: Under this component, a member has to pay Tk.80 as premium for one year to get Paramedic Services. Up to June 2015 total number of 4014 benificiaries got treatment, moreover 3262 beneficiaries received services provided by specialized doctors. At that time service charge collected was TK. 0.71 million.
4. Livestock Insurance: To obtain this policy the borrower has to pay 0.7% of loan amount as premium to get their cattle insured for the loan period. In the last financial year (July’14 to June’15) the amount of premium collected was TK. 1.15 million and claim paid was TK. o.37 million . Up to June 2015 livestock Insurance fund balance is TK. 2.65 million. Project activities are divided into four components.