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Endnotes
1 While the microinsurance sector was until recently relatively undocumented, CGAP's "Good and Bad
Practices in Microinsurance" project has produced several useful case studies, including one on VimoSEWA
(Garand (2005)), another on ASA, SHEPHERD and SPANDANA (Roth et al (2005)) some lessons from
which are contained in Box 5.3, and a third on an insurer, Tata-AIG (Roth and Athreye 2005). A good
book on SEWA is ILO 2001. See also the ILO reports discussed below.
2 See Kanitakar (2005) for an excellent case study of lessons to be learnt out of Chitradurga Grameen
Bank's experiences with two insurance schemes for their SHGs, and why one was more popular than the
other. However, neither scheme enabled the bank or the Community Managed Resource Centre promoted
by MYRADA supporting the SHGs under one of the schemes to recover its costs from processing
fees (commission).
3 However it is not uncommon, and a variety of insurance products exist for SHG members.
4 See ILO 2001. Following the ILO, the term social protection is understood to include not only social
security schemes (defined as public measures to provide against various contingencies such as sickness,
maternity, old age and death of the breadwinner, as well as health care and benefits for families with
children) but also private schemes, formal and informal. Social security includes social insurance, i.e.
contributory schemes, social assistance, defined as tax-financed benefits provided only to those with
low incomes, and universal benefits provided without reference to income or means testing. If the
proposed Social Security for Organized Workers Bill, 2006, is enacted, coverage will be universal with
(i) health insurance for self, spouse and children, covering hospitalization expenses up to Rs 15,000,
and sickness and maternity benefits, (ii) life insurance covering natural and accidental death, and
(iii) old age pensions for BPL workers above the age of 60, and provident fund cum unemployment
insurance benefits to all other workers. The premium of Rs 3 a day will be shared between workers,
employers and central and state governments (with the state paying the share of BPL persons).
5 Although the bulk of coverage under social security schemes is of employees in the organized sector
(through the ESI, EPF etc) about 40 million informal sector workers are estimated to be covered under
social assistance schemes such as the National Social Assistance Programme (started in 1995 to
provide old age pensions to BPL persons over 65, and maternity and survivor benefits) and various
subsidized group insurance schemes for different occupational groups run by the LIC and GIC.
6 Including trade unions, charitable hospitals, NGOs and CBOs.
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