The Hindu : Andhra Pradesh News : Triple insurance bonanza for SHG women

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Andhra Pradesh

Andhra Pradesh

Triple insurance bonanza for SHG women

Ravi Reddy

The move to benefit 60 lakh women in election year in A.P. may change the course of micro-insurance

A file photo

On development path: Women at a DWCRA convention in Visakhapatnam. —

HYDERABAD: After the grandiose launch of Rajiv Arogyasri, subsidised rice and many other welfare measures, the Y.S. Rajasekhara Reddy government in Andhra Pradesh is now toying with the idea of wooing women of the thrift groups and their husbands by doling out a triple insurance bonanza soon.

The move to insure 60 lakh women of self-help groups (SHG) in the State in the election year is likely to change the course of micro-insurance sector in a big way. Andhra Pradesh has already created history by insuring 38 lakh landless labourers in the State under the Aam Admi Bima Yojana.

The government is planning three separate insurance schemes – insurance on bank loans, Jana Shree Bima Yojana and insurance cover for milch animals. The government is in an advanced stage of consultations with the Life Insurance Corporation of India to implement them.

The first initiative is to protect the loan obtained by the SHG members under the loan/credit insurance.

Piquant problem

With the SHG bank linkage programme ensuring over Rs. 10,000 crore for the groups, the government is faced with a piquant problem when it comes to repayment of the loan in the event of the death of the borrower. This is an addition to the Aam Admi Bima Yojana, Janashree Bima Yojana and other group insurance already under implementation.

In all likelihood, the SHG member will end up paying Rs.75 towards premium for the insurance policy. There are occasions when the SHG member’s death has burdened her family members, a Rural Development official remarked.

In the event of death of a member, the insurance company will clear the outstanding loan amount. The family, in turn, is assured of getting the refund of instalments.

Insuring the spouse

The other sop that the government plans to extend to the SHG members is insuring the spouse of SHG member under the Janasree Bima Yojana. This ensures insurance cover to over 40 lakh men getting into insurance.

The third benefit the SHG members are expected to get is the insurance coverage for the milch animals given to the groups. A pilot project had been launched in Vizianagaram district. This is expected to be extended to Nizamabad, Karimnagar, Chittoor, Anantapur, Kadapa and Srikakulam districts in the coming months. At least 3.50 lakh milch animals would be insured under the scheme.

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