Son of Five Rivers Blog

For the advancement of Entrepreneurship, Sustainability & the Ecology of Everyday Life

Microinsurance for the Poor

Tsunami insurance for the poor

A new health insurance plan will enable the poor in India to buy health insurance for less than 10 cents a month, and it will cover natural disasters including Tsunamis.

The new program is a partnership between and aid group, CARE International, and a private insurer, Allianz. It is expected that over 200,000 customers will buy insurance within a year. According to Allianz, the communities have been involved in designing the new policies, which will cover death, medical treatment for injuries in accidents, help with funeral and hospital expenses, as well as paying wages during illness.

“Microinsurance provides a comprehensive measure of social security in an area which desperately needs this sort of protection against accidents and shocks that can push poor communities right to the limit,” said Wolfgang Jamman, national director of CARE Germany.

But don’t be so quick in calling this charity work. With an estimated market of 250 million policy holders in India, there sure is a buck or two to be made.

Posted by Alan Pereira (World Bank Private Deveopment Secotor Blog)

August 29, 2009 Posted by | Business, Business Model, Community Economic Development (CED), Creativity, Economics, Government, Philanthropy | , , , , , | Leave a comment