Insurance is a type of contract that reduces the potential financial risk that may occur in the future. Insurance is a type of method of providing legal provisions between the insured and the insured. After getting insurance, the insured has the ability to deal with future financial and physical losses. The insurance premium paid by the insured and the commission is received from the insurer. The amount received in this way can reduce the risk that any of you may have in the future. In this way, insurance is a formal or legal method used to transfer the risk that may occur in the future to others.
insurance is needed for economic and social security by almost all people. However, some people stay away from the reach of insurance due to financial capacity. Micro insurance is an insurance that protects the life or property of people or communities who are not able to cope with the risks caused by low income, economic and social reasons. Micro insurance programs may be more suitable for people who do not have access to other insurance or do not have it. A person who is always worried about animal husbandry, medical treatment, business worries, as well as worried about the future of his children, should use various programs of microinsurance, which make him comfortable.
The Micro Insurance Directive 2071 BS defines “micro-insurance business” as a business carried out under this directive targeting the individuals and communities vulnerable to low income, economic, social and geographical reasons to protect their life and property.
- TAG_OPEN_strong_30 It is important to understand what are the features of micro insurance.
Insurance of a simple nature
Less paperwork
Insurance claim process is simplified and short
No hassle to get insurance
Small savings are enough to pay the insurance premium
Small insured can be insured
Type of microinsurance
– Household microinsurance
– Health microinsurance
– Accident microinsurance
– Bali microinsurance
– Small Business Insurance
– Animal÷Bird Microinsurance
– Serious illness insurance
The micro-insurance program is targeted at the sections that are not covered or accessible by other insurance policies. Micro-insurance is a program that helps in reducing the potential risks that may arise in the daily life of the people living in rural areas, who are not covered by the scope of insurance, who are low-income and earn a living. If such programs reach the doorsteps of the people of rural areas and include them, then they will definitely get the ability to deal with the possible financial or physical risks that may arise in the future. If this program can be successful, the general public can be brought under the ambit of the insurance sector.
Submitted by: Reena Khatri
