MICROCAPITAL BRIEF: National Insurance Timor-Leste (NITL), Tuba Rei Metin, Moris Rasik Introduce Life Microinsurance Products

National Insurance Timor-Leste (NITL), an insurance company in the Democratic Republic of Timor-Leste, has partnered with local microfinance institutions (MFIs) Tuba Rai Metin and Moris Rasik to introduce regulated microinsurance products in the country. NITL will underwrite the products, which will be distributed by Tuba Rai Metin and Moris Rasik to their clients. The first two products, “Credit Life Plus,” which was launched in April, and “Asuransi Protesaun ba Familia,” launched in May, are mandatory for clients accepting new loans. If a borrower dies, the insurance pays off her outstanding loan balance and her family will receive USD 500. If a borrower’s husband dies, the family will receive a minimum of USD 250, but the loan must still be repaid. The products are expected to cover approximately 34,000 people by the end of 2012.

The partnership between NITL and the MFIs was facilitated by the Inclusive Finance for the Under-served Economy (INFUSE), a program funded by the United Nations Capital Development Fund (UNCDF), United Nations Development Programme (UNDP) Timor-Leste, the Ministry of Economy and Development (MoED) of Timor-Leste and the Australian Agency for International Development (AusAID).

At the end of the first quarter of fiscal year 2012, Tuba Rai Metin reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 2.8 million, gross loan portfolio of USD 1.9 million and approximately 7,000 clients. Moris Rasik reported total assets of USD 7.7 million and a gross loan portfolio of USD 4.4 million as of 2010.

By Charlotte Newman, Research Associate

About Tuba Rai Metin
Tuba Rai Metin (TRM) of Timor-Leste (East Timor) aims to provide “microfinance and allied services for a large number of poor in a sustainable and regulated manner to improve the quality of lives of families and empower women.” At the end of the first quarter of fiscal year 2012, TRM reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 2.8 million, gross loan portfolio of USD 1.9 million and approximately 7,000 clients.

About Moris Rasik
Moris Rasik is a microfinance provider in Timor-Leste that was established in November 2010. The head office of the institution is in Dili, and the organization has branches in all other 12 districts of the country. Moris Rasik’s mission is poverty reduction and empowerment through provision of financial and non-financial services to rural women with incomes below the poverty line. As of 2010, Moris Rasik reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 7.7 million and a gross loan portfolio of USD 4.4 million.

Sources and Additional Resources:

Pacific Financial Inclusion Programme: Press Release: “Timor Leste Women Get Protection Through Partnership with Tuba Rai Metin, Moris Rasik and National Insurance Timor-Leste (NITL),” http://www.pfip.org/media-centre/press-releases/timor-leste-women-get-protection-through-partnership-with-tuba-rei-metin-moris-rasik-national-insurance-timor-leste-nitl.html

MicroCapital.org story, January 26, 2012, “MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Lends $1.5m to Microfinance Institutions Tuba Rai Metin of East Timor; Humo and Partners, Arvand of Tajikistan,” https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-lends-1-5m-to-microfinance-institutions-tuba-rai-metin-of-east-timor-humo-and-partners-arvand-of-tajikistan/

MicroCapital.org story, September 12, 2011, “MICROCAPITAL BRIEF: ADB’s Pacific Private Sector Development Initiative (PSDI) Annual Report Covers Partnership with Microfinance Institutions (MFIs) in Papua New Guinea, Timor-Leste, Vanuatu,” https://www.microcapital.org/microcapital-brief-adb%E2%80%99s-pacific-private-sector-development-initiative-psdi-annual-report-covers-partnership-with-microfinance-institutions-mfis-in-papua-new-guinea-timor-leste-vanuatu/

MicroCapital Universe Profile: Tuba Rai Metin
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tuba+Rai+Metin

MicroCapital Universe Profile: Moris Rasik
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Moris+Rasik

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