Social Security Scheme of IRIA (SSS – IRIA) Dr. Suresh H. Saboo Vice President, IRIA Introduction Social and financial security is needed by everyone Many other medical organizations like FOGSI, IMA – running similar scheme very successfully IRIA – A big and strong organization Such scheme will increase our members Salient features Scheme only for life members ONE TIME PREMIUM Premium increases with age Death Fraternity Contribution (DFC) – required every year, depending on the number of deaths 1000 members required in the first year to make it reasonably viable No death benefit to any member in the first year of scheme (Accidents – excluded) Rapid settlement of death claims (Within 7 days) Portfolio management The money will be invested in Proposed scheme Premium table for becoming a member of the scheme Age group <30 Reg. fees Basic Total premium 500 3500 4000 31-40 500 4500 5000 41-50 500 5500 6000 51-55 500 6000 6500 56-60 500 6500 7000 61-65 500 7500 8000 66-70 500 8500 9000 Projected figures in first year of scheme Approximate interest Total collected amount : Interest @ 6% : 56,00,000 3,36,000 Death claims (Assuming 2 accidental deaths) 1,25,000 2 : 2,50,000 Balance sheet (at the end of first year) Second year of scheme Considering 300 new members Approximate interest Total collected amount : Interest @ 6% : 55,86,000 03,35,160 DFC (Assuming 2 accidental deaths) Death claims in Second year Death claims 1,25,000 7 : 8,75,000 Balance sheet (at the end of second year) Third year of scheme Considering 200 new members Approximate interest Total collected amount : Interest @ 6% : 67,96,160 04,07,770 DFC (For 7 deaths in previous year) Death claims in Third year Death claims 1,50,000 10 : 15,00,000 Balance sheet (at the end of Third year) Fourth year of scheme Considering 150 new members Approximate interest Total collected amount : Interest @ 6% : 74,63,930 04,47,836 DFC (For 10 deaths in previous year) Death claims in Fourth year Death claims 1,75,000 6 : 10,50,000 Balance sheet (at the end of Fourth year) Fifth year of scheme Considering 150 new members Approximate interest Total collected amount : Interest @ 6% : 89,36,766 05,36,206 DFC (For 6 deaths in previous year) Death claims in Fourth year Death claims 2,00,000 7 : 14,00,000 Balance sheet (at the end of Fifth year) Option of merging with LIC group insurance Insure member for a pre-decided amount say 1 or 1.5 lac Premium rate – Age of the person Upto 40 yrs of age – Rs. 350/ year > 45 – Rs. 530/ year The scheme is administered through association Association is the master policy holder Premium payment and settlement of claims through association Implementation of LIC group insurance Association provides list of members with date of birth LIC will inform the premium amount Association will fill up the form and the master policy is issued Scheme is renewable every year Summary NSS is viable, needs systematic planning and implementation 1000 members – realistic target Office bearers should not be changed for first five years We have benefit of good office structure LIC group insurance – another option Fund investment in proper portfolios is crucial