'Sathkara’ insurance for low income groups

...countries such as India and Bangladesh where significant percentages of their population fall into the poverty bracket have already launched quite a number of micro insurance products which have reaped astonishing benefits to all players concerned.

The 'Sathkara' Micro insurance product is a social responsibility project from HNB Assurance, being touted as insurance for the low income.

At the launch of the product last week, it was announced that HNB Assurance was working in conjunction with the Sarvodaya Movement's economic arm, Sarvodaya Economic Enterprise Development Service (SEEDS) (Guarantee) Ltd to introduce the 'Sathkara Micro Insurance Policy' to the public.

Chairman of HNB Assurance, Rienzie Wijethileke, said the brand new product hinges on affordability, accessibility and availability. He said unfortunately in this country, the poor are not considered bankable and in the case of natural disasters or other catastrophes, the poor are left helpless.

In fact, other South Asian countries such as India and Bangladesh where significant percentages of their population fall into the poverty bracket have already launched quite a number of micro insurance products which have reaped astonishing benefits to all players concerned.

The battle against poverty cannot be fought alone by the state in case of the untimely death of a breadwinner. This being the case, HNB Assurance has deemed it ideal to make their bids for an Asian Development Bank (ADB) tender which was called from insurers for the provision of an insurance service which helped the country in general and in particular, a selection of the populace who would have to face great financial calamity in case of the death, hospitalization or disablement of a breadwinner.

Although most insurers are reluctant to launch micro insurance products due to the low premiums and high risks involved, HNB Assurance thought otherwise. It had in mind the social responsibility to the country as a leading corporate body and utmost confidence that a satisfactory return could be achieved if efforts are rightly executed and engineered. (NG)