1) Why life insurance for the poor?

Annapurna started giving micro loans and collecting small savings from poor vegetable vendors in Pune in 1993. It started with a group of 9 women.

By the year 1997 Annapurna had 1,500 members. Annapurna Pariwar lost 2 members in 1997, due to sudden & untimely death.

All the group members contributed Rs.2/Rs.5 each and repaid the loans of these members. Therefore the need was felt that Life Insurance cover was required for all members.

After exploring the available health insurance schemes, Annapurna Pariwar joined the Group Insurance scheme of LIC, namely Janashri in 1998 and continued till 2008.

In June 2009 a Community based Life Insurance was started by Annapurna & the members were covered for their life insurance. This is a self owned and self managed scheme of members of Annapurna Mahila Co op Credit Society.

Community based Life Insurance has 40,000 members as of March 2025.

Loan is written off plus Rs. 25,000 is given to the nominee of the borrower who is the main policy holder in case of death of member.

2) Why health insurance for the poor?

In 2000, one of the members of Annapurna, a domestic worker died at the age of 29 due to a cardiac ailment, leaving behind 3 small children and a husband who was a rickshaw driver.

After long discussions with the then 3,000 members of Annapurna each one expressed the need for health insurance coverage for them and their families within an affordable insurance premium and also health guidance.

After exploring the available health insurance schemes, Annapurna Pariwar discovered that no commercial insurers offered an affordable package with proper medical guidance especially to build health awareness among the poor , illiterate / less educated persons.

Most insurers were having commercial motives and were making profits from even the poor clients. The premiums were high, unaffordable and there was no guarantee of claim settlement. If the clients did not fall sick in one year, the premium paid added to the profits of the insurance company. This was not acceptable to the members of Annapurna Pariwar.

Annapurna Pariwar decided to set up a Community based Health Mutual Fund, in 2003. This is run and owned by the borrowers of Annapurna Mahila Co op Credit Society.

This being a non commercial entity, the purpose was to give health guidance in addition to financial help at the time of sickness. It was also aimed that if there are no claims the money should stay with the mutual fund so that the profits are owned by the members.

This reserve fund can be utilised to provide better coverage for sick members.

Community Based Health Insurance Program covers 1,45,000 members as of March 2025.

For any sickness and hospitalization, minimum Rs. 7500 to maximum Rs. 1,00,000 is given to the member.

3) Why Family insurance for the poor ?

In 2005, five to six family members of Annapurna borrowers had gone for Manderdevi pilgrimage (Yatra).

There was a stampede at this Pilgrimage, in which hundreds of people died. In the same mishap of Manderdevi Yatra many relatives of members died.

Annapurna staff and members were very upset with this incident. Members contributed and collected money for helping the families for the funerals. Thus the concept of giving immediate help to the borrowers at the time of death in the family was born.

Financial assistance of minimum Rs. 5,000/- to maximum Rs. 12,500/- to death of spouse or any family member.

Community based Family Insurance has 1,15,000 members as of March 2025.

4) Why Asset insurance for the poor ?

Around 2005 two disasters happened. There was a fire in Market yard, Ambedkar Nagar slum & the other was gas cylinder burst at Shelar Chawl. These two incidents in Pune slums disturbed the life of Annapurna borrowers in these slums & Annapurna thought that they should be given some help immediately.

Emergency help was provided to the families, clothes, vessels, grocery were provided to them immediately by Annapurna Pariwar. This help was gathered from well wishers of the organization.

There after Community Based Family Insurance was set up within Annapurna Pariwar for helping the borrowers at the time of death in family and accidents.

Annapurna Pariwar Vikas Samvardhan covers accidental asset loss, gives an emergency relief of minimum Rs. 3000/- upto Rs. 50,000/- to the members.

Annapurna set up a Not For profit company registered under Sec.8 in 2003.

This is owned by the borrowers of Annapurna Pariwar, whose representatives are on the managing committee of this company.

While Annapurna Mahila Co op Credit Society gives micro loans to members, Annapurna Pariwar Vikas Samvardhan company does the enrolment of community based insurance from the families of the members.

Annapurna has in house Medical Officers who take care of the Health Care Providers’ Network.

Health Care Provider’s Network is created by signing MOUs with private hospitals and LOAs with public and Trust hospitals. They support by giving quality healthcare at low cost.

Members’ elected Representatives called Community Representatives pass / reject claims. They try to settle all the claims which are genuine and as per rule. The rejection ration is very low.

Specially appointed Service Executives within each Annapurna branch give health guidance and services to all the members.

All the data is recorded and maintained in a specialised software which is tailor made for Annapurna Pariwar. Health cards are provided to each member, with the family photograph and information on it. This is used at the time of hospital admissions, to get appropriate concession.

1) Contribution V/s Benefit :

* Health Mutual Fund (Community Based Health Insurance) :

Contribution : Minimum of Rs. 430/- per head per person to a Maximum of Rs. 2500/- per head per person

Benefits :

Health Advice on Phone.

Guidance for Planned Operation, Before and After Hospitalisation.

Regular Client Education.

50% to 100% Refund as per the category and type of Hospital.

Minimum Rs. 7,500/- to a maximum Rs. 1,00,000/- as financial assistance given to member.

* Hospiwage (Wage Loss Compensation Product) :

Contribution : Minimum of Rs. 200/- per head per person to a Maximum of Rs. 250/- per head per person

Benefits :

Minimum Rs. 500/- to a maximum Rs. 15,000/- as financial assistance given to member.
For ICU admission - Rs. 1000/- and Other than ICU admission - Rs. 500/- per day wage loss compensation.

* Family & Life Mutual Fund (Community Based Family & Life Insurance)

Contribution :

Minimum Rs. 423/- , Maximum Rs. 8,033/-

For Loans ranging between Rs. 25,000/- and Rs. 5,00,000/-

For the complete loan tenure. This financial assistance to tide over unforeseen problems.

Benefits for death of borrower :

Complete loan waive off plus

Minimum Rs. 15,000/- to maximum Rs. 25,000/- as a financial assistance to the nominee.

Benefits for death of person other than borrower :

Financial assistance of Rs. 7,500 to Rs. 12,500/- given in case of death of Loan Guarantor/ Co-borrower for loan.

Financial assistance of Rs. 5,000 to Rs. 9,000/- given at the time of death of any other family member.

* Asset Mutual Fund (Community Based Family & Life Insurance)

Contribution :

Minimum of Rs. 45/- to maximum Rs. 1,280/-

Benefits :

Minimum Rs. 3,000/- to a maximum Rs. 50,000/- as financial assistance given to the member

2) Strengths of Community Based Insurance Program :

Health advice and guidance with continuous Client Education.

Network of hospitals with Annapurna Pariwar Vikas Samvardhan assures low cost and timely treatment at affordable costs.

Claims Settlement by Committee of Members Representatives. Thus ensuring the participation of member in the governance.

3) Robust Software with Programmed :

Claim opening through Tab.

Claim Settlement of clients

Medical History of clients

Fund Management

4) Financial Assistance given in 2025-26 (Rs. Lakhs) :

Annapurna’s Community Representatives are active and responsible members chosen from among the borrower members who work sincerely in their groups and communities.

In the Annapurna Mahila Co-operative Credit Society, they are called the Smaller General Body. One Community Representative is selected from each community area. Other members approve their selection in community meetings by raising their hands. They are selected for two years.

On the 7th of every month, Community Representative meetings are held at Annapurna’s Pune Head Office and Vashi Regional Office. It is important for them to attend these meetings.

In these meetings, members’ claims and other important organization matters are discussed and decisions are taken. Community Representatives check members’ claims and approve or reject them according to the rules. They make special efforts to ensure that genuine claims are approved properly. Because of this, the number of rejected claims remains very low.

• Community Representatives attend important programs of the Annapurna family.
• They share information about the organization’s services and benefits with members in their community.
• They inform members about important decisions and discussions from the meetings.
• They help maintain trust and transparency between the organization and the members.

From the Smaller General Body, two Community Representatives from Pune and Mumbai work as Board Members of the Annapurna Mahila Co-operative Credit Society for two years.
Also, two representatives from Pune and Mumbai work as signatories for insurance claim approvals for two years.

Every member can get a chance to work as a Community Representative for two years. Through Community Representatives, members take part in important decisions of the organization and help the organization run smoothly.