Experiences in Livestock Insurance at BASIX 05Jun08

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Experiences in Livestock Insurance at
BASIX05-Jun-08
Gunaranjan, Head-Insurance Business, BASIX
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BASIX Mission
To promote a large number of sustainable
livelihoods, including for the rural poor and
women, through the provision of financial
services and technical assistance in an
integrated manner BASIX will strive to yield a
competitive rate of return to its investors so as
to be able to access mainstream capital and human
resources on a continuous basis.
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Strategy- to provide
IDS (Institutional Development Services)
LFS (Livelihood Financial Services- Credit,
Insurance, Savings, Remittances)
Ag/BDS (Agriculture and Business Development
Services)
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BASIX Livelihood services- delivery model
LSA travel to village
Agri-Business development services
Credit
Insurance
Interacts, assesses and provides
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Outreach (on 31-Mar-08)

• Started operations in 1996
• Present in 14 states, 101 districts, 11,000
  villages
• Serving 0.5million customers
• Supported by 2,460 staff
• Managing a micro credit portfolio of INR 2,504
  million (USD 62million)
• With an on time recovery rate of 98.7

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Risk management strategy

• BASIX approaches to address the risks of the poor
  through the twin strategies of
• Non Financial interventions
• Risk Minimisation e.g Preventive Vet Care,
  Disease prevention in crops
• Financial interventions
• Savings(self insurance)
• Insurance for lives and livelihoods
• The former intervention is also aimed at making
  insurance more affordable for the poor by
  reducing the underlying risk in the insurance
  contract

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Risks covered by BASIX

• Risks to Crops

• Risks to Life
• Death
• Disease
• Disability

• Risks to Livestock

• Risks to Enterprises

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Business Model
Distribute Insurance
Offer products
Rural Customer
Insurer
BASIX
Inputs for products and processes
Feedback on needs
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Business Model- The value chain
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Business Partners

• With
• AVIVA
• Since2002
• In Life Insurance
• Royal Sundaram
• Since2002
• In Health, Livestock and Enterprise Insurance
• ICICI Lombard
• Since2003
• In Weather Index insurance

BASIX Equity for Equity
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Outreach
Go to Contents
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Cumulative Claims Settlement
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Business Processes-Innovations
Go to Contents
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Business Processes-Innovations
Go to Contents
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Evolution of Product and Processes
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Livestock Insurance-Current Product
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Livestock insurance outreach
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Livestock Insurance Enrolment to Claim processes

• Livestock Insurance Sales usually takes place
  over 2 visits to the customer at the village.
• The 1st visit involves communicating the product
  to the customer
• The 2nd visit involves enrolling the customer,
  collection of premium and tagging of the animal

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Livestock Insurance

• LSA travels to the village by motorcycle.
• Each LSA covers an area with a radius of 20km,
  in which he provides various livelihood services
  to in about 15 villages

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1st Visit

• The Field Executive and LSA meet with the
  customer to communicate the features of the
  product

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1st Visit

• If the customer agrees to take up the insurance
  product, the LSA will visit the village again to
  tag the animal and collect premium payment.
• 2-3 days is given between the visits to allow
  the customer to arrange the money for the premium.

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2nd Visit

• LSA fills out the required documents
• Customer gives consent to the enrolment form

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2nd Visit

• Customer pays the premium amount
• And collects the receipt for the premium payment

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2nd Visit

• The animal is then secured for tagging
• And then tagged

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Tagging

• Most locations do not have the facility of
  trevis to tie the animal in the process of
  tagging
• Covering the animals eyes during tagging with a
  towel/cloth reduces the difficulty in tagging
  animals that are aggressive or unruly

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Data Processing

• LSA submits premium and enrollment forms at unit
  office
• Enrollment forms are then sent to BASIX HO and
  from there to a Rural BPO for data entry
• Insurer receives data of all new assets insured
  in electronic format along with consolidated
  premium cheque for all new customers to complete
  the underwriting process

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Livestock Retagging

• If the tag falls off from the livestock, the
  customer is required to immediately contact the
  unit office.
• The LSA will travel to the village within the
  next few days to retag the animal. During this
  time, the insurance coverage will be suspended.
• Cover commences after the 10th day of retagging

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Claims facilitation
e-mail
Prepare report and send
BASIX field staff or Branch
Inform by
Claim event
Customer Informs within 24hrs of the event
e-mail
(or)
Rural BPO
Visit location and investigate
Inform by
Field Facilitator
(and)
e-mail
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Claim Processing

• Required claims documents
• Claim form filled by the customer
• Customer copy of enrollment form
• Photograph of animal
• Tag
• are submitted to the LSA by the customer, who
  then hands over the same at the Unit Office
• Unit office sends the same to Insurance Dept at
  BASIX HO which are then scrutinized and processed
  at BASIX supported Rural BPO and sent to the
  Insurer

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Claim Settlement

• Once the claim has been approved by the insurance
  company the customer is informed by LSA at the
  village
• The customer then travels to the unit office to
  receive the settlement.

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Claim settlement

• Customer signs required documents
• And receives a cheque for the settled amount

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Thank you.gunaranjan_at_basixindia.comwww.basixind
ia.com