Crowdfunding organisation Milaap turns 13 this week, a milestone year it hopes will bring greater regulatory clarity to this financing segment that is being increasingly sought by patient-families when traditional sources run dry.

The industry sits at the intersection of healthcare and payments, among others, and has sought guidance from multiple authorities, including the Reserve Bank of India, Health Ministry, and National Commission for Protection of Children’s Rights, co-founder Anoj Viswanathan, told businessline. 

The industry has reached a stage where formalisation is needed, be it in the form of a regulator or self-regulatory guidelines, and this needs to be done through dialogue between industry and various bodies, he added.

Crowdfunding involves individuals or corporates, for example, donating towards a project or cause. In healthcare, people resort to crowdfunding after exhausting every other option, says Viswanathan. When people fall through the cracks of insurance, especially in critical care (when the insurance-cover is exhausted or there are exclusions), that’s when alternatives like savings, borrowings, mortgage / asset sales and crowd funding and come in, he points out.

The crowdfunding industry borrows the best practices of other industries and apply it in spirit, says Viswanathan. “That by no means gives us clarity when things go south,” he added. For instance, the crowdfunding platform (despite being an intermediary) ends up reimbursing an aggrieved donor if a campaign runs amiss for some reason, he points out.

Outlining how rules from more mature industries are being applied, he said the rules on intermediaries are applied when it comes to payments and settlements; for contributions from outside India, it’s FCRA rules and on fund transfers to hosiptals or beneficiaries, standard KYC (know your customer) checks are applied.

Seeks clarity

Milaap is also seeking clarity on the use of photos, for example, of adults or children, for raising funds for medical treatment. Infact, the Advertising Standard Council of India (ASCI) had reached out to various stakeholders, including Milaap, to discuss issues around promotion of online fundraisers, especially on imagery, integrity of beneficiaries, donor distress, and cost of promotions, a company representative added.

The organisation has raised a total of ₹2,300 crore, he said, of which, 80 per cent goes towards funding medical treatment. Besides seeking formalisation of the sector, Milaap is working on “normalisation of seeking help”.

Explaining why they were working on mental health support, he said people hesitate to seek financial support or abruptly leave a campaign. If treatment is expensive, elderly members tend to not pursue with it due to the pressure on the family. And here’s where a community support group could help them and caregivers deal with the challenges of taking treatment and staying the course, he said.   

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