The Changemakers team is interested in the development of your initiative, and we would like to learn more about your innovation. How do you plan to implement your idea? How will you ensure financial sustainability?
Since the judges spend more time reading the entry form than the comments, please also update your entry in addition to responding to our questions and other comments. This will provide the panel of expert judges with the most comprehensive explanation.
Several MFI's have been offering such "Risk/Benevolent Funds" and are gradually migrating to offering products by Insurance Companies.
NGO's are not suited to offer the same. IRDA is correct in regulating the insurance sector.
Insurance deals with client savings and hence must be offered by well capitalised, well regulated and well governed Insurance Companies who have the capital and capacity to handle a complex product like insurance.
----------
Featured Commentator
Ashoka's Changemakers
Dear Pragyesh, Thanks for your entry. It will be great if you explain more clearly that "How is your idea unique?". Since today many MFIs create an internal risk(disaster) fund that can be quickly accessed to solve the short term liquidity crisis.The problem they face after a sudden disaster is liquidity: loan repayments slow or cease, while clients request for emergency loans. MFIs can easily be caught unprepared for the cash demands of these events, which can emerge over the course of only a few days.
Also please detail more on how do you plan to finance the fund? Will you directly built it into the clients’ cost of borrowing: either through a fee, a set-aside of a percent of the loan amount, or a higher interest rate?
----------
Featured Commentator
Ashoka's Changemakers
Dear Nitin ji, I think my statement might not be so clear, that why it wa snot clear to you, I will take some more time to redefine the statement, Bi the way it is not for Liquidioty fund, it is Benevelont Fund, benevelont fund to secure the insurance aspect of the cliemts, actually, presently we all MFIs are availing services of the Insurance companies for the same, we are planning to provide a plateform before the MFIs to avail the insurance facility for thier clients, actualy rational behind is that Premium charged by the Inssurance companies is about 5 times higher then the actual mortality rate applicable in india, so the insurance companies are bundeling thier pocket on the cost of the poors, we will take special permission from the IRDA for "micro-group insurance" and that would be undertaken by the minimal sum of the premium paid to that "benevolent fund" by doing so MFIs can reduce thier cost 50% approximately, that fund be reinsured by any reinsurer, this will be an initiatiative to secure the finanical self sufficiency of the MFIs.
Hope that will remove your doubt. further soon i will make further presentation to the web to clarify the matter,
I Thinks government will not allow this activity is to be undertaken, as this involve IRDA and as per the IRDA rules & Regulation, any insurance company must have some net worth, but if it can be leverage to the NGO/MFIs, that would be realy excellant,
we will tak einitiative to convience IRDA to allow such activity to NGO/MFI, further we are in process to have some assistance of the senior of the insurance sector.
This is very good initiative taken the jaago, actualy like Micro Finance NGO/MFIs should be allowed to carry on the insurance activities to ensure that the every poor personal is able to access the insurance facility without beeing depent on the Governmant Grants,
well done, go ahead and paved the way for the poor of India..........
Dear Pragyesh,
Thank you for submitting your entry!
The Changemakers team is interested in the development of your initiative, and we would like to learn more about your innovation. How do you plan to implement your idea? How will you ensure financial sustainability?
Since the judges spend more time reading the entry form than the comments, please also update your entry in addition to responding to our questions and other comments. This will provide the panel of expert judges with the most comprehensive explanation.
Thanks so much! We look forward to learning more.
Best wishes,
The Changemakers Team
----------
Kaylena Bray
Ashoka's Changemakers
Several MFI's have been offering such "Risk/Benevolent Funds" and are gradually migrating to offering products by Insurance Companies.
NGO's are not suited to offer the same. IRDA is correct in regulating the insurance sector.
Insurance deals with client savings and hence must be offered by well capitalised, well regulated and well governed Insurance Companies who have the capital and capacity to handle a complex product like insurance.
----------
Featured Commentator
Ashoka's Changemakers
Dear Pragyesh, Thanks for your entry. It will be great if you explain more clearly that "How is your idea unique?". Since today many MFIs create an internal risk(disaster) fund that can be quickly accessed to solve the short term liquidity crisis.The problem they face after a sudden disaster is liquidity: loan repayments slow or cease, while clients request for emergency loans. MFIs can easily be caught unprepared for the cash demands of these events, which can emerge over the course of only a few days.
Also please detail more on how do you plan to finance the fund? Will you directly built it into the clients’ cost of borrowing: either through a fee, a set-aside of a percent of the loan amount, or a higher interest rate?
----------
Featured Commentator
Ashoka's Changemakers
Dear Nitin ji, I think my statement might not be so clear, that why it wa snot clear to you, I will take some more time to redefine the statement, Bi the way it is not for Liquidioty fund, it is Benevelont Fund, benevelont fund to secure the insurance aspect of the cliemts, actually, presently we all MFIs are availing services of the Insurance companies for the same, we are planning to provide a plateform before the MFIs to avail the insurance facility for thier clients, actualy rational behind is that Premium charged by the Inssurance companies is about 5 times higher then the actual mortality rate applicable in india, so the insurance companies are bundeling thier pocket on the cost of the poors, we will take special permission from the IRDA for "micro-group insurance" and that would be undertaken by the minimal sum of the premium paid to that "benevolent fund" by doing so MFIs can reduce thier cost 50% approximately, that fund be reinsured by any reinsurer, this will be an initiatiative to secure the finanical self sufficiency of the MFIs.
Hope that will remove your doubt. further soon i will make further presentation to the web to clarify the matter,
Thanks & Regards.,
Pragyesh Kr. Singh,
JAAGO
I Thinks government will not allow this activity is to be undertaken, as this involve IRDA and as per the IRDA rules & Regulation, any insurance company must have some net worth, but if it can be leverage to the NGO/MFIs, that would be realy excellant,
Vijay pratap singh, Jaago
Vijay Ji,
we will tak einitiative to convience IRDA to allow such activity to NGO/MFI, further we are in process to have some assistance of the senior of the insurance sector.
This is very good initiative taken the jaago, actualy like Micro Finance NGO/MFIs should be allowed to carry on the insurance activities to ensure that the every poor personal is able to access the insurance facility without beeing depent on the Governmant Grants,
well done, go ahead and paved the way for the poor of India..........
Aditya Agrawal, Jaago
Thanks Aditya JI, we will discuss the matter in the board and will design the policy to take up the matter,
regards,