Karuna Trust, Karnataka - ZEF

Good and Bad Practices in MicroinsuranceKaruna Trust, IndiaTable of ContentsAcknowledgements .....................................................................................................................................iiExecutive Summary ...................................................................................................................................iv1. The Context .............................................................................................................................................11.1 Role of the State in Insurance .............................................................................................................................21.2 Insurance Industry Basics ...................................................................................................................................61.3 The Role of the State in Social Protection ........................................................................................................111.4 Brief Profile of Microinsurance ........................................................................................................................112. The Institution.......................................................................................................................................122.1 History of the Institution...................................................................................................................................122.2 Organisational Development ............................................................................................................................152.3 Resources and External Relationships ..............................................................................................................192.4 Risk Management Products ..............................................................................................................................202.5 Profit Allocation and Distribution.....................................................................................................................203. The Members.........................................................................................................................................213.1 Social and Economic Conditions ......................................................................................................................213.2 Major Risks and Vulnerabilities .......................................................................................................................223.3 Relationship between Client Risks and the Institution’s Services ....................................................................223.4 Familiarity with Insurance ................................................................................................................................234. The Product ...........................................................................................................................................244.1 Partners .............................................................................................................................................................244.2 Distribution Channels .......................................................................................................................................244.3 Benefits.............................................................................................................................................................264.4 Premium Calculation ........................................................................................................................................294.5 Premium Collection ..........................................................................................................................................314.6 Claims Management .........................................................................................................................................324.7 Risk Management and Controls........................................................................................................................334.8 Marketing..........................................................................................................................................................344.9 Customer Satisfaction .......................................................................................................................................365. The Results ............................................................................................................................................375.1 Management Information Systems ...................................................................................................................375.2 Operational Results...........................................................................................................................................375.3 Financial Results...............................................................................................................................................375.4 Impact on Social Protection Policy...................................................................................................................386. Product Development ...........................................................................................................................397. Conclusions............................................................................................................................................407.1 Significant Plans ...............................................................................................................................................407.2 Key Issues Summary.........................................................................................................................................40Annex 1: Inpatient Register .....................................................................................................................42Annex 2: Voucher .....................................................................................................................................43Annex 3: Discharge Summary .................................................................................................................44Annex 4: Membership receipt..................................................................................................................45Annex 5: Briefing Notes for Staff ............................................................................................................46i