PLHA Micro Life Insurance launched in Salem, Tamilnadu

[Guest guest]

Dear Forum,

Herewith we wish to bring to the attention of the forum members towards PLHA

life insurance. This is a micro insurance through a community mutual model by

Project Concern International- PCI supported by CARE-India. This program is

expected to provide social security issues of PLHA in Salem, South India.

*Pathway to PLHA Micro life Insurance scheme in Salem, Tamilnadu-*

*PLHA Micro insurance process- Introduction*

Positive action towards life insurability of PLHA has been taken up at

Salem in India. This major step has been taken up by Project concern

International supported by CARE-INDIA through a community mutual program.

With the support of CARE INDIA, PCI is currently implementing a pilot

program- Insuring lives and livelihoods of PLHA (ILAL) through a micro

Insurance program with a mutual model- JEEVODHYAM. This micro-insurance

innovation is expected to enroll 2000 PLHA in the pilot phase.

CARE-INDIA with its expertise in innovating Livelihood programs and PCI with its

strength of multi-tasking roles in designing and implementing public health

programs have initiated this program through partnership model.

Since 2003 PCI is implementing a care and support program- Positive action

towards the health of people living with HIV/AIDS ( PATHWAY). PATHWAY is a

comprehensive community home based care model focused to enhance the quality of

life of PLHA in five of the high prevalent States.

During these years mortality rates has been addressed with enhanced

survival rates among the PLHA. This comprehensive program has shown the path

for PLHA insurance. This micro insurance product is expected to address the

social security concerns of PLHA from rural back ground who all hail from below

poverty line (BPL).

This model is also expected to document the process of insurability for the

PLHA. PLHA can be accepted for life policy which is important for financing

their mortgage and to ensure social security requirements.

*PLHA Life insurance process-*

The survival versus mortality rate of a group of 2,257 PLHA registered under the

PATHWAY in Salem was analyzed from September 2003 to September 2008.

Mortality rates among the PLHA was found to have reduced from 54% to 10.75%

during this period.

Positive action had enhanced survival rates of PLHA with ensured community home

based care for the PLHA. Early identification of PLHA, effective self care

practices, treatment of opportunistic infection, effective monitoring systems,

and effective system strengthening. Advocacy and networking were the other key

strengths of the project.

Through effective networking practice with ART centers, according to ART center

data, PCI referred PLHA adherence level is 97.55%. Effective community home

based system with GIPA model in which effective peer-education and

peer-counseling has facilitated towards this better ART compliance status.

With the support of CARE INDIA and an actuary a mathematical model was

developed by PCI on the extra mortality resulting from HIV, compared to

population mortality. On the basis of sufficient statistical material net life

insurance premium can be calculated.

Globally mortality rate among the PLHA was also observed to have reduced from

1997 through effective programs and initiation of HAART and ART also

significantly enhanced the survival status. In India free ART services through

the NACO programs also facilitated better survival rates among the PLHA.

* Product development-*

With the statistics on the most recent results of HIV treatment and

survival rate, the actuaries were able to create calculation models on the basis

of which a net mortality basis could be developed which results in an affordable

premium for a large group of PLHA for their net life insurance premium. Insurers

are willing to cover a risk comparable to people with diabetes or a serious

heart condition.

Actuaries who develop and design did take their social responsibility to open

life policies for PLHA. With the Global financial market crashing the Insurance

companies are hesitating to initiate the PLHA life insurance.

Mean while PCI and CARE INDIA have come into partnership through an

agreement to take positive action in developing a micro insurance product for

the PLHA group through a mutual model- Jeevodhayam. It is a first step in

diminishing the social exclusion of PLHA in life policies. In this pilot phase

there are two micro-insurance products for 10years.

*PLHA Micro life insurance products developed by the Community mutual-

1. Plan A-Rs.5,000 for which the annual premium would be Rs.400/annum.

2. Plan B- Rs.10,000, annual premium would be Rs.750/annum.

There would be a waiting period of One year- during which the PLHA

beneficiaries would be paid Rs.2000 and Rs 3000 for their respective plans in

case of any eventuality.

*Eligibility criteria*- All PLHA are eligible. Adult/Child.

Terminally ill PLHA will be observed for 3months and latter on can be

enrolled.

*Future directions-*

Micro-Insurance is a positive strategy in addressing social security issues of

PLHA. The formation of community owned mutual committee to implement this

Micro-Insurance scheme among the PLHA is to be closely monitored and to be

scaled up in near future.

Community ownership, by the people for the people approaches are meant to create

better ownership among the CBOs. Capacity

building of the staff on insurance sector should be highlighted.

Detail process documentation to be ensured for future disseminations to the

Insurance companies.

To ensure this the current report has been a first step in insurability and has

to be amended regularly to take into account recent medical insights and in the

light of new statistics. The implementation of the report on their net life

insurance premium for PLHA among Insurers must be researched.

Hoping for better Global economy and share holders stake in insurance sector to

reach comfort levels.

Project concern International’s partnership with CARE INDIA though this

innovative ILAL program is a major step in creating sustainable mutual models

for micro-life insurance schemes for PLHA. These innovations will be replicated

and scaled up with effective networking partnerships at the National level in

near future.

Refer- http://www.hinduonnet.com/2009/03/02/stories/2009030252600300.htm

District level PLHA networks are directly invovled in this initiative. This

program is expected to provide support the PLHA social security concerns.

Looking forward to feedback from this proactive group.

Thanks

With Solidarity

S.Ramkumar

Program Manager

Project Concern International

2/50C, 4th Main, Shivaya Nagar, Reddiyur post.

Salem- 636004

9244561178

pciramkumar@...

www.pciindia.org