In an interview with business newspaper, Economic Times (ET), co-founder and vice president of Vaatsalya Healthcare Solutions Dr V Renganathan discussed the microinsurance scheme for which he is seeking a grant. He asserts that the plan will offer low-income Indian consumers both hospital care as well as out-patient consultation.
Dr Renganathan claims that because health insurance in India does not include out-patient services such as doctor consultations, drugs and diagnostics, consumers are forced to pay high medical bills out of pocket. He states, “Vaatsalya is proposing that when people buy insurance, they also get a fixed number of coupons that they can exchange for medical consultation. We will price the product around USD 600 to 700 [annually] with an insured sum of USD 30,000 for a family of 4 to 5.”
Dr Renganathan states that Indian microfinance institutions (MFIs) helped expand health insurance to the low-income market, but the service has been plagued with low quality providers, fraud and the high-costs of marketing and servicing insurance products.
As of August 6, 2010, Vaatsalya Healthcare has submitted an application for a grant to the Microinsurance Innovation Facility (MIF) of Switzerland. The MIF proclaims, “In order to be funded, the idea has to be innovative; replicable by others; and at the same time economical to low income groups.”
About Microinsurance Innovation Facility (MIF):
Launched in 2008 with a USD 34 million grant from the Bill & Melinda Gates Foundation, the Microinsurance Innovation Facility (MIF) is housed at the International Labour Organization’s (ILO’s) Social Finance Programme in Switzerland. The Facility’s goal is to increase the availability of quality insurance for low-income families in developing countries to help them overcome poverty.
MIF provides grants to help organizations develop innovative microinsurance products, with an emphasis on agriculture, health, life and property insurance. MIF also provides technical assistance and advice.
By Matthew Fox, Research Assistant
Sources and Additional Resources
Economic Times: Educating Consumers is Crucial: V Renganathan, 6 August 2010: http://economictimes.indiatimes.com/opinion/interviews/Educating-consumers-is-crucial-V-Renganathan/articleshow/6263796.cms
Meet the Boss: Interview with Craig Churchill, Head of International Labour Organizations (ILO’s) Microinsurance Innovation Facility: https://www.microcapital.org/meet-the-boss-interview-with-craig-churchill-head-of-the-ilos-microinsurance-innovation-facility/
MicroCapital Brief: The International Organizations’s (ILO’s) Microinsurance Innovation Facility Opens Fourth Round of Innovation Grants: https://www.microcapital.org/microcapital-brief-the-international-labour-organization’s-ilo’s-microinsurance-innovation-facility-opens-fourth-round-of-innovation-grants/
MicroCapital Universe: Microinsurance Innovation Facility (MIF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microinsurance+Innovation+Facility+(MIF)
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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