Micro Insurance provides a wide range of Insurance coverage from highly susceptible to risks forms low-income group like:
Group Personal Accident Insurance
House Hold Insurance
Micro Finance Institutions have been focusing on providing savings and credit services only. However, a growing number of Mirco Finance Institutions practitioners have recognized that providing credit is not enough for the sustainable development of the poor.
A heartfelt requirement for other financial activities like insurance and allied services alongside savings and credit services has been noticed.
Formal insurance services are not accessible to the poor because of high premiums and complicated procedures.
The poor in Nepal like any other less-developed countries are vulnerable to different types of risks and adopt various strategies to reduce the impact of the loss. Insurance services are very essential for low-income households to cope with uncertainties and emergencies like illness or injury, death, natural disasters, theft, and life cycle needs.
Micro-insurance helps the poor combat the vulnerability caused by exposure to such unacceptable risks. By pooling into a risk fund to mitigate stipulated perils like illness, loss of assets, death, and widowhood, the poor can protect themselves from unexpected loss. Thus, the Insurance of lives and livelihoods is important for the risk-prone economic life of the poor.
If you are interested in Micro Insurance and wants to know more in detail, please feel free to submit following information.