Social Security Schemes for Kudumbashree NHG members
A. Background
Kudumbashree, poverty eradication mission of the state of Kerala works
with 41 lakhs women who are organised into 2.5 lakh neighbourhood groups
(NHGs). Kudumbashree’s approach to poverty alleviation focuses primarily on
micro finance and micro-enterprise development, and is integrally linked to local
self-government institutions. Kudumbashree mission’s strategies revolve around
promoting local economic development, encouraging innovation, providing forward
and backward linkages, flexible financial support and planned capacity building
programmes thereby ensuring livelihood security for the poor.
Kudumbashree Mission envisions that the poorest of the poor deserve access to
relevant and affordable insurance and be protected from risks on death / disability/
lack of income during old age and that every person is insured and protected.
The Kudumbashree mission has initiated two schemes like Kudumbashree
Sthree Suraksha Bima Yojana (KSSBY) and Credit linked Insurance scheme in
the months of Januray 2014 and October respectively. The details of the schemes
are as follows:
B. Kudumbashree Sthree Suraksha Bima Yojana (KSSBY)
Kudumbashree Sthree Suraksha Bima Yojana (KSSBY) is implementing through
LIC of India for administering the scheme and started in January 2014 in the state
of Kerala.
Objective of the Scheme: - To provide financial assistance to the deceased family
members in the case of premature death of the NHG member through natural
death/ accidental death and also providing benefits in case of the event of
permanent or partial disability.
Eligibility: Members of Kudumbashree NHGs in the age group between 18 years
(completed) and 75 years nearer birthday.
Benefits of the Scheme:
a) For the age group between 18 years (completed) and 59 years nearer
birthday
PREMIUM
- Rs 250*
INSURANCE COVEREGE
INSURER
NATURA
L DEATH
ACCIDENTA
L DEATH
LIC
50,000
95,000
PERMANEN
T
DISABILITY
75,000
PARTIAL
DISABILITY
SCHOLARSHIP
37,500
1,200**
* Out of 250 rupees premium Central Government will pay 100 Rupees towards the
premium per member.
**Free Add on Scholarships – The sons and daughters of the members insured under
the scheme & studying in 9th to 12th standards (including ITI) are eligible for Rs 1200 per
annum payable half yearly. This is not a merit scholarship and the only requirement is
that the child will be given scholarship only once in a particular class say 9 thand so on.
Two children per member are eligible for the scholarship.
b) For the age group above 59 years, the following benefits are available
only for Natural death
Premium
amount
60-65 yrs
66-70 yrs
71-75 yrs
150
9,000
6,000
4,000
C. Credit Linked Insurance Scheme
This Credit Linked Insurance Scheme started in October 2014 and implementing with the
support of New India Assurance Company Ltd.
Objective of the Scheme: - To minimize the risk of loan default of NHG group due to the
unforeseen events like critical illness, accidental death and loss to property in the life of
NHG member thereby safeguarding the institutions of poor from disintegration, defunct
and extra repayment burden.
Eligibility: - Kudumbashree NHG, ME and JLG members who availed Bank linkage loan
can participate in the scheme.
Insurance Coverage:1. Death /Permanent Total Disablement caused by bodily injury solely and directly
due to accident caused by external,visible and violent means and such bodily injury
resulting in death or permanent total disablement within 12 calendar months from
the date of accident - Rs.30000/2. Hospitalization due to named critical illnesses and women specific critical illnesses
mentioned in the tender document - Rs.30000/-. Pre existing critical illnesses are
covered with 30 days waiting period.
3. Total loss of property due to fire and allied perils and natural calamities as per the
Standard Fire and Special Perils policy - Rs.30000/4. Funeral expenses following accidental death only -Rs.2000/-
D. Claim settlement process
Kudumbashree had appointed ALEgION Insurance Broking Pvt. Ltd. as Insurance advisor
and Insurance Broker to assist them in implementation of the insurance schemes, and
through due process with the advice of ALEgION has selected Life Insurance Corporation
of India to implement KSSBY and New India assurance Company Ltd. to implement
Credit Linked Insurance scheme to the members of Neighbourhood Groups (NHGs) of
Kudumbashree. Kudumbashree will not make any payment of any professional fees to
Alegion. However the Alegion will be eligible for the brokerage from the selected
insurance companies as per the IRDA regulations.
Role and Responsibilities of ALEgION:
1. Provide all details of existing insurance products, both in Life and non life policies
as required by Kudumbashree and design the product for the benefit of members
of Kudumbashree.
2. Evaluate the products so designed and give a comparative study of various
3.
4.
5.
6.
7.
possible options and recommend the choice of the insurer.
ALEgION shall not violate the rules and regulations of IRDA.
ALEgION can claim with the insurers the Brokerage as per IRDA norms.
ALEgION should take an active role in enrollment of members for the insurance
scheme with the support from Kudumbashree.
Follow-up with the members, individual beneficiaries and insurers and ensure
renewal of insurance in time by issuing the renewal notice and recommendations.
Educate Kudumbashree authorities the latest developments of the insurance
industry and suggest modifications of the existing insurances and / or suggest new
policies
8. Liaise with the State Government offices concerned and other stakeholders of the
mission and ensure continued success of the insurance schemes opted.
9. Liaise with the Insurer and extend all cooperation in underwriting the risks. This
would be by way of collecting all required information, relating to the insured, from
the field and providing them to the insurance company and also ensuring that the
members / beneficiaries are insured / benefitted under the various insurance
schemes so chosen by Kudumbashree.
10. Engage in creating awareness among the public regarding the proposed schemes
and also ensure that maximum number of persons come under the insurance fold.
This would be both in terms of ensuring renewals and addition of new beneficiaries
under the various schemes.
11. Organize publicity and awareness camps to popularize the schemes and also
inform the public regarding the benefits of the various insurance schemes, the
enrollment process and the claims process.
12. Set-up at least 5 telephone numbers, operating during working hours, to answer
any query relating to the various schemes. The telephone numbers shall be
operative from the effective date of the first policy.
13. Establish a Service Center office at Thiruvananthapuram to facilitate beneficiaries,
awareness creation and claims servicing.
14. ALEgION should handhold Kudumbashree in setting up the call centre for claim
servicing.
15. Develop a Management Information System (MIS), which is an online real time
platform for the scheme implementation.
16. Furnish details of all activities as a brief report to The Executive Director,
Kudumbashree on a monthly basis and have a review meeting on a bi monthly
basis at Kudumbashree head office.
Settlement of Claims:
1. In the event of death of the insured member whilst being covered under the
scheme, the benefits under the Assurance on his life will be paid to the nominee
on receipt of claim papers along with the requirements.
2. The settlement of death claim would be subject to the Nodal Agency
(Kudumbashree) submitting to the Corporation claim-cum-discharge form with LIC
id and copy of the Death Registration Certificate. Death claims should be preferred
with the corporation within 6 months of the date of death of the insured member.
Claims delayed beyond 6 months will not be entertained by the Corporation.
3. In the event of death of the insured member before the terminal date and where
the policy is in force, the Nodal Agency should submit, the following requirements:
a) Claim form duly completed in all respects
b) Copy of death certificate duly attested by the Nodal Agency, Attestation should
be Original; Death Certificate issued by the Village Accountant is acceptable.
4. In the event of accidental death benefit claim cases the following additional
requirements to the satisfaction of the Corporation will have to be submitted in
addition to Death Registration Certificate.
a) Copy of FIR
b) Post Mortem report
c) Police inquest Report
5. In case of claims due to snake bite and wild animals, following additional
requirements are called for:
a) Medical Certificate given by Assistant Civil Surgeon
b) Panchanama.
6. Scholarship claim procedure:
i. The member of KSSBY whose child is eligible for scholarship shall fill up an
application form as per proformas and submit it to the Nodal Agency.
ii. The application form has to be submitted every year for claiming the
scholarship mentioning that the child is promoted to the next standard.
iii. A list of beneficiary students has to be submitted by the Nodal Agency to the
LIC of India for disbursement of scholarship with full details such as Name of
the student, school’s name, Class, Member’s name, member’s LIC Id, Master
Policy no, Membership no., NEFT A/C Details of the Beneficiary student or
his/her insured parent under the Scheme.
iv. The scholarship shall be disbursed to the beneficiary students/ member’s
Bank Account through NEFT.
NHG Members/Nominee
CDS
District Mission
State Mission
LIC of India / New India
Alegion will assist the CDS to
collect the claim forms and
supporting documents