A Study on Micro-Insurance & the Low Income G...

A Study on Micro-Insurance & the Low Income Group

Author Name : M. Kavya Goud , Sudhaker Reddy

ABSTRACT

Insurance is one of the emerging concepts in the recent period which involves huge investment in socio economic developments. Micro-insurance helps poor from different risks. Micro-insurance has different products like life, health, property and natural disaster. Micro insurance is specifically designed for the protection of poor who form the bottom of the pyramid, with affordable insurance products to help them cope with and recover from stress and shocks. Past studies did not focus on awareness about micro-insurance. If the poor people do not become aware about micro- insurance products and their benefits, proper distribution and implementation of micro-insurance are not possible. Micro insurance is a part of financial inclusion and the difference micro insurance and macro insurance is only the premium amount and coverage amount. This paper analyses the level of participation of clients of microfinance in micro insurance. The study concludes that the level of participation in micro insurance is very low and the main reason is the lack of awareness. Even though micro insurance is treated as a part of micro finance programme the reality is poor participation in micro insurance programme among the participants micro finance. Key Words: micro insurance, low- income people, awareness, stress