National Insurance VimoSEWA Cooperative Ltd.
National Insurance VimoSEWA Cooperative Ltd. pushes for greater penetration of Micro-Insurance for Informal Workers through Policy Reforms
NEW DELHI / MUMBAI, 12th OCT, 2022 (GPN): VimoSEWA, the microinsurance arm of the Self-Employed Women’s Association, SEWA, celebrated its 30th anniversary by organizing a national workshop in New Delhi, aimed at increasingmicroinsurance penetration for low income families through policy reforms. Registered as the National Insurance VimoSEWA Cooperative Limited since 2009, it is India’s first all women insurance cooperative-one in which women are the owners, policy-holders and managers. Over the last 30 years, VimoSEWA has issued 10 lakh policies to informal women workers and Rs 26 Crores of concrete economic support by way of claims has been put into the hands of women and their family members.
Giving its three decades of experience in microinsurance, VimoSEWA has been in dialogue with the Insurance Regulatory and Development Authority of India (IRDAI) on finding ways to extend miro – insurance coverage to low income families across India.
Mirai Chatterjee, a Founder of VimoSEWA and Director of SEWA’s Social Security Team, chaired the Committee on Standalone Microinsurance Company set up by the IRDAI for this purpose. Other committee members included Dr Nachiket Mor, formerly Chairman of the Reserve Bank of India’s Committee to recommend expansion of microfinance in India through the licensing of small banks. Dr Nachiket Mor explained that the same could easily be applied to the insurance sector, thereby reaching hitherto unreached citizens.
This workshop hopes to take forward the dialogue with IRDAI and the government of India, and press for implementing the recommendations put forth by the IRDAI’s committee, especially the reduction of capital requirement for licensing from a minimum of Rs 100 Crores to a maximum of Rs 20 Crores, based on global experience of extending microinsurance to low income families. Significant legal changes will have to be made and are currently under consideration by the IRDAI and the Government of India.
The workshop began with a panel of grassroot women leaders engaged in insurance education and marketing of policies for women like themselves. Asha Ajmeri, Chairperson of VimoSEWA Cooperative, shared her experiences: “I am a garment worker. I had no idea what insurance was about. Through insurance education by VimoSEWA, I not only understood the importance of insurance for self-reliance, but also began explaining this to other workers like myself. I am now a Vimo Aagewan-insurance promoter of VimoSEWA. I issue Rs 20 lakh worth of policies each year to women“. Rekha Surve, an insurance promoter from Madhya Pradesh, Geeta Mahour a member from Delhi Savings and Credit Cooperative and Sunitadevi a worker, who actually obtained her claim from VimoSEWA, also spoke on the occasion.
Speaking at the workshop, Mirai Chatterjee, Director, SEWA Social Security and Founding Board Member, VimoSEWA said, “ VimoSEWA’s experience shows that women are not only insurable, but through them the whole family obtains some basic security. We now reach lakhs of women across the country with financial and social protection. It has been a journey rich with lessons of what works to reach the poor, and especially the hard-working women of our country. We have learnt that microinsurance is essential for women’s economic empowerment and self-reliance. However, we need appropriate laws and policies for microinsurance to grow and spread across the country.”
Jayshreeben Vyas, Managing Director, SEWA Bank, spoke about how insurance is a critical part of financial inclusion and needs to be incorporated in all financial services for women. She mentioned the importance of financial literacy and insurance education, and at all stages in women’s life-cycle.
Other participants from civil society engaged in microinsurance like PRADAN, Aga khan Foundation, Annapurna Pariwar, TRIF (Transforming Rural India) also discussed what is workable at the grassroots to enhance the reach of financial and social protection. There were deliberations on modalities to develop an enabling environment for microinsurance entities to reach the last mile with better products and services. The role of mutuals was also highlighted. The role of civil society organizations in partnering with insurers and reaching microinsurance to low income families was part of the policy discourse.
Ruchi Agarwal, CEO, VimoSEWA cooperative, stressed the importance of digitization in spreading microinsurance. She said, “VimoSEWA is expanding its reach and services with the help of digital technology. It has developed an app and many of its operations are now online. Women have adapted well to digital technology. This happened during the COVID-19 pandemic and we are building on lessons learned to digitise further.”
Several senior functionaries from the insurance industry, including TR Mendiratta, former Director Life Insurance Corporation of India (LIC), and VimoSEWA board member and Munish Bhardwaj, Country Head RRB, Micro Insurance, India First Life Insurance recommended the need for enabling policies to extend microinsurance to all the citizens of India. Ends
Be the first to comment on "National Insurance VimoSEWA Cooperative Limited celebrates its 30th anniversary"