In my previous post I tried to explain about the challenges facing the Microinsurance sector in INDIA. Let me stress on how we plan to take it within FINO.

Given the deep understanding of the customers from bottom of pyramid, We at FINO understand the existing bottlenecks in proliferation of micro insurance and the practical ways to overcome them.
We launched FINO SURE – Insurance services for the low income group, with following inherent leverages:
• Leverage of group
• Leverage of Institutions and systems
• Leverage of transactional infrastructure
• Leverage of technology – instant & paperless process
Having an affinity group of large base of low income group customers keeping in mind the following key points

Some key points
1. The facility of Insurance – both Life (pure term life) and General (Group personal accident),
2. provision of instant and paperless enrollment,
3. along with meeting the underwriting requirements.
FINO has selected one life and another General Insurance company for providing the customized product to their group of customers – on voluntary basis.

Looking at the practical requirements of the customers, We offered Life term plan (i.e. pure risk cover) of Rs. one lakh sum assured and Group Personal Accident (GPA) of Rs. 50 thousands and 1 lakh of cover. Thus, at one end the sum assured is as per the defined microinsurance limit (Rs. 50,000), but at the same time looking at the current basic financial needs of low income customer in hour of needs, it has also provided a cover of Rs. 1 lakh as selling large quantities of insurance that costs very little and provides little benefit has limited value, no matter how widely it is sold.

Another very important aspect of FINO SURE is the fact that the 10,000 strong agents (called “bandhu”) are very well trained in Insurance , who in turn reaches to all their customers in rural and under banked areas and sensitize them on the need of Insurance, thus elevating the level of financial literacy for the much needy section of the society.
Our product has penetrated to 14 districts like Bijapur, Gulbarga, Kolhapur, Rewa, etc. and has covered successfully 5000+ lives in the first phase, which is targeted to escalate to more then 100 districts in the next phase of launch.

I will be happy to answer any queries the readers have on this post. Haapy reading FINO Koshish Blog.