The Hindu Business Line : ING, PlaNetFin in micro insurance initiative

ING Group and PlaNet Finance India have come together to institute the MicroInsurance Awards (MI Awards) 2007, which aims to build a comprehensive inventory and identify existing best practices in product design and distribution channels implemented by the existing micro insurance schemes in the country. The initiative would also promote the development of new products and delivery models targeted at the rural market. The announcement was made at a ceremony here.

Speaking to media persons, Mr Michel Tilmant, Chairman of ING Group, said: "The development of a stronger micro insurance platform, as an extension of micro finance, is necessary if the rural population is to be protected against the various risks they face on a daily basis, allowing broad segments of the population to escape a continuing cycle of disadvantage and poverty. ING's global expertise in insurance allows us to best understand the specific risks involved in offering such products and afford opportunities to minimise administration burdens which can cripple micro finance platforms."

Insurance Portfolio

Mr Shivendra Sharma, Executive Director of PlaNet Finance India, said: "Although it is not necessary for finance and insurance to be provided by the same institutions, micro finance institutions which share the infrastructure and the outreach can significantly reduce their overall costs of managing a micro insurance portfolio. This encourages more micro finance providers to include micro insurance in their service offering."

Both organisations felt that the joint initiative will evolve over the years in line with the growth of the micro insurance industry.

In its first year, the project aims to build a comprehensive inventory of micro insurance initiatives in India including details of the level and type of risk coverage.

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