MICROCAPITAL BRIEF: National Database and Registration Authority to Fund Accidental Death Microinsurance for all Pakistanis

The National Database and Registration Authority (NADRA), the issuer of government identity cards in Pakistan, reportedly has designated the government-owned State Life Insurance Corporation of Pakistan as the low bidder in a procurement process through which NADRA will fund accidental death insurance for all Pakistani citizens. A new Smart national identification card to be distributed by NADRA will give people access to insurance coverage in the amount of PKR 100,000 (USD 1,000). NADRA and State Life reportedly plan to offer individuals the option to pay an unspecified premium add-on to boost the coverage level to PKR 1 million (USD 10,200).

An insurance mandate is being considered for carriers of the National Identity Card for Overseas Pakistanis (NICOP). This would require Pakistani citizens living in other countries to pay PKR 97 (USD 1) for PKR 300,000 (USD 3,070) in life insurance. The term of this product is unspecified as is whether it would cover death from causes other than accidents.

State Life Insurance Corporation also reportedly is considering launching a microinsurance scheme for Pakistan Railways train passengers. A PKR 5 (USD 0.05) premium per train ticket would allow the company to provide up to PKR 100,000 (USD 1,000) in coverage for each passenger. Further details on this product are unavailable.

State Life Insurance Corporation has approximately PKR 293 billion (USD 2.99 billion) in total assets as of year-end 2011.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

The Express Tribune: “Financial Inclusivity: Micro-insurance facility for people on the cards,” http://tribune.com.pk/story/496412/financial-inclusivity-micro-insurance-facility-for-people-on-the-cards/

MicroCapital.org story, January 25, 2013, “MICROCAPITAL BRIEF: Banks Finance Fewer Small and Medium-Sized Enterprises in Pakistan,” https://www.microcapital.org/microcapital-brief-banks-finance-fewer-small-and-medium-sized-enterprises-in-pakistan/

MicroCapital.org story, June 27, 2012, “MICROCAPITAL BRIEF: State Bank of Pakistan (SBP) Allows Microfinance Providers to Accept Funding from Non-Bank Sources,” https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-allows-microfinance-providers-to-accept-funding-from-non-bank-sources/

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