Microinsurance STC Report

SUBMITTED TO:
Micro Lead Cameroon

SUBMITTED BY:

November, 2013

Bhartiya Samruddhi Investments and Consulting Services Limited (BASICS Ltd.)

No.408, 1st Floor, Upper Palace Orchards, 12th Cross Road, Sadashivanagar,
Bengaluru -560 080, Karnataka, India Tel: (+91-080) 2361 0700 | Fax: (+91-080) 4132 0720
Web: www.basix-consulting.com / www.basixindia.com
TABLE OF CONTENTS
1 Introduction .......................................................................................................................................... 3
1.1 Objectives of the Micro Lead Cameroon Project: ......................................................................... 3
1.2 Deliverables................................................................................................................................... 3
1.3 About the Project Partners: .......................................................................................................... 4
1.3.1 MIFED: ................................................................................................................................... 4
1.3.2 A3C: ....................................................................................................................................... 4
1.3.3 Association of CVECA and CECA of the Centre (A3C):........................................................... 4
2 About Insurance Sector:........................................................................................................................ 5
3 About the Present Short term Consulting Assignment:........................................................................ 6
3.1 Approach & Methodology: ........................................................................................................... 6
4 About the Pilot on Micro Insurance ...................................................................................................... 7
4.1 Objective ....................................................................................................................................... 7
4.2 PILOT IMPLEMENTATION STRUCTURE:......................................................................................... 7
4.3 Commission to partners/stakeholders: ........................................................................................ 9
4.4 The Product (Assorisque) Features: .............................................................................................. 9
4.5 Pilot facts and figures.................................................................................................................. 10
4.6 Observations: .............................................................................................................................. 10
4.7 Year wise Category wise claim figures: ....................................................................................... 10
5 interactions with the Stakeholders: .................................................................................................... 11
5.1 Stakeholders ............................................................................................................................... 11
5.2 Interactions with MIFED ............................................................................................................. 11
5.3 Interaction with NSIA .................................................................................................................. 12
5.4 Interaction with A3C ................................................................................................................... 13
5.5 Interactions with AFII .................................................................................................................. 14
5.6 Interaction with directorate in charge of in charge: ................................................................... 15
5.7 Voice of People Field Visit Observations.................................................................................. 16
5.8 Visit to CECA ................................................................................................................................ 17
6 Major Observations: ........................................................................................................................... 18
7 Recommendations: ............................................................................................................................. 19
7.1 Recommendations for Immediate Attention: .......................................................................... 19
7.2 Recommendations on the Pilot Program: ................................................................................ 19
 7.2.1 Program Level: .................................................................................................................... 19
7.2.2 Product Level: ..................................................................................................................... 20
7.2.3 Process Level: ...................................................................................................................... 21
7.2.4 Field Level: .......................................................................................................................... 21
7.3 Recommendation on New Products: .......................................................................................... 22
7.3.1 For Members of the CVECA/CECA: ..................................................................................... 22
7.3.2 For Loan Customers: (credit +)............................................................................................ 22
8 Conclusion: .......................................................................................................................................... 22
9 Annexures ........................................................................................................................................... 24
9.1 Work Plan for the Short Term Consulting Assignment: .............................................................. 24
9.2 Details of people contacted: ....................................................................................................... 25
9.3 Details of meetings: .................................................................................................................... 26
WORKING SESSION WITH MIFED ........................................................................................................ 26
WORKING SESSION WITH NSIA ........................................................................................................... 26
WORKING SESSION WITH AFII ............................................................................................................ 26
WORKING SESSION WITH CVECA OF ENDINGUILI .............................................................................. 26
WORKING SESSION WITH A3C ............................................................................................................ 27
WORKING SESSION WITH DEPARTMENT OF INSURANCE, MINISTRY OF FINANCE (MINFI) ............... 27
WORKING SESSION WITH CECA OF OBALA ......................................................................................... 27
WORKING SESSION WITH CHANAS ASSURANCE S.A. ......................................................................... 27
WORKING SESSION WITH NSIA HEAD OFFICE..................................................................................... 27
WORKING SESSION WITH ASAC .......................................................................................................... 28
RESTITUTION MEETING WITH STAKEHOLDERS AT MICROLEAD OFFCE.............................................. 28
DEBREIFING AT MICROLEAD OFFCE .................................................................................................... 28
9.4 Sample product Features: ........................................................................................................... 29
1 INTRODUCTION
Under the Expanding Access to Savings Led Financial Services program of UNCDF, the consortium of
BASICS Ltd and PAMIGA was invited to explore possibilities and options to contribute in strengthening the
Microfinance sector in Least Developed Countries, including Cameroon. A team of professionals from
BASICS Ltd and PAMIGA/CIDR undertook a feasibility study in Cameroon during December 2011 and
February 2012 to explore how access to savings led financial services can be expanded.

During the study, the team met with various Macro, Meso and Micro level stakeholders and identified the
intervention model for strengthening the microfinance sector in Cameroon. The team used several
methods to gather information such as interviews, focused group discussions, visits to branches, direct
observation and secondary information collection from government and private sources. The study
helped the consortium identify gaps in the Microfinance sector and the areas of intervention required to
expand the outreach of the MFIs in the country.

1.1 OBJECTIVES OF THE MICRO LEAD CAMEROON PROJECT:

It is planned that by the end of year 2016, the two Federations of Village Banks (A3C & UCCGN) and CEC
Cameroon will be in a position to provide wide range of financial services comprising savings, credit,
money transfer and insurance services with use of proper technology for improving operational
performance, securing data collection and analysis and lowering transaction costs. Broad objectives are

To strengthen the Business Strategy and Planning

To improve corporate governance of three MFIs
To strengthen the management information systems to improve operations efficiency
To develop and implement new products (Savings, Credit and Insurance to reach women and rural
population, mobile banking)
To strengthen Risk Management and Internal control systems to overcome issues pertaining to
the operations and business achievements
To generate aw
support MIFED in the objective of strengthening the technical assistance capabilities and further
enhance capacity to disseminate knowledge in Cameroon MFI sector
To contribute in strengthening the microfinance sector as a whole by setting quality benchmarks
in respective areas developed in A3C, UCCGN and CEC during the period of next three and half
years.

1.2 DELIVERABLES
More than 90,000 numbers of incremental clients reached through savings services from 2012 to
2016 by introducing new short term as well as long term savings products

end of the project (PAR>30 less than 7.5 % for a
than 50,000 of incremental clients provided credit

Expanding the clientele account base of rural women and poor from 30% in 2012 to more than
50% in December 2016 (credit and savings accounts), with the help of existing and by introducing
 various customer oriented new short term as well as long term credit products for agriculture,
small & micro enterprises general purpose and insurance product subject to implementation
ent system of CEC Cameroon and networks strengthened
to manage expansion and cater for the poorest and vulnerable segment in rural areas

MIS improved to be able to segregate data in-terms of portfolio, gender, age and other social
performance parameters, thereby enabling the institutions to assess the impact of their
respective services.

Providing benchmarking systems for other MFIs catering for rural areas and having improved risk
management and related systems by having improved knowledge management and training
systems at MIFED.

Objectives and Deliverables of the Project

Building up institutional capacities by providing intensive training for productivity enhancement (average
per credit officer), from 385 accounts to at least 500 Savings & credit accounts on group lending basis.

1.3 ABOUT THE PROJECT PARTNERS:

1.3.1 MIFED:
Microfinance et Developpement is an association under Cameroonian law created in May 30th, 1998 and
certified on July 1st of that year. MIFED has been involved for over 10 years in the socio-economic
development and the fight against poverty through development activities, primarily in the field of
microfinance in Cameroon. MIFED is a sector building organization, which is looking forward to expanding
its capabilities to address the capacity building needs of the sector comprising village banks and MFIs. The
consortium plans to share its expertise and build capacity of MIFED for providing technical assistance to
Microfinance institutions

1.3.2 A3C:
The Association of CVECA and CECA in Centre (A3C) is a voluntary offshoot of reconfigured combined
portfolio of CVECA and CECA of the Centre region in Cameroon. It intervenes today with 73 branches in 6
divisions in Centre region, covering 16 sub divisions and 292 villages.

1.3.3 Association of CVECA and CECA of the Centre (A3C):

A3C Cameroon was put in place by MIFED Cameroon with the support of CIDR from 1996 to 2007, date of
its institutionalization. Its mission is to offer financial services of proximity to rural populations.

The A3C network consists of 3 local unions and with an umbrella body which has a Board of Directors, a
Supervisory Board, a Director and an Assistant Director.

The umbrella body and its affiliated CVECA and CECA are approved in the form of category 1 MFI within
the framework of the CEMAC/UMAC/COBAC entered in force since April 2005.

Its geographical scope covers the Centre region (Lki, Mbam and Inoubou, Mbam and Kim, Upper
Sanaga, Nyong and Mfoumou and Mefou & Afamba Divisions).
Technical support and monitoring services of the network are outsourced to an independent private
institution CRATED. The main institutions that make up the network are: - The CVECA and the CECA; - The
umbrella body referred to as: Association of the CVECA and CECA of the Centre (A3C); - The technical
support service referred Centre of Research and Technical Support for Development (CRATED);

2 ABOUT INSURANCE SECTOR:

Cameroon has a small insurance industry. Given the market size, the non-life insurance segment is highly
competitive and fragmented with the presence of 18 companies. The global financial crisis had both a
direct and indirect impact on the industry; Cameroons economy is largely dependent on commodity
exports, which declined during 20082010 as a result of the crisis and negatively affected the overall
economy. The volume of goods and services exported by the country declined by 4% in 2008, 2.7% in 2009
and 1.2% in 2010 respectively. In 2009, the IMF disbursed US$144 million under its Exogenous Shocks
Facility to help Cameroon cope with the crisis adverse effects. In addition, the decline in exports directly
caused written premiums in the marine, aviation and transit insurance category to decline by 9.9% in 2008
and 9.6% in 2009.

Insurance penetration as a percentage of GDP in Cameroon stood at 1.02% in 2012, which is very low
compared to the penetration rates of developed countries. The Cameroonian insurance industry
comprises both domestic and foreign insurance companies. Foreign direct investment is allowed in the
industry, and the history of global insurance giant Allianzs operations in Cameroon dates back to 1924.

Large underdeveloped market

The Cameroonian insurance industry is highly underdeveloped and offers lucrative potential for growth,
given the relative growth in the countrys labour force and increasing GDP per capita. More than 90% of
Cameroonians do not have access to traditional insurance products. The Cameroon Insurance Companies
Association (ASAC) intends to increase the size of the market through various measures, ranging from the
simplification of procedures to diversification of the product portfolio, as well as the launch of awareness
campaigns which educate the public about the benefits of having insurance. As part of this objective, the
ASAC has also undertaken various initiatives including reactivating the national arbitration commission,
starting up a pool of co-insurance for insuring risks related to public transportation and introducing a new
health policy.

Poverty has been a major hindrance to growth in the Cameroonian insurance industry, particularly in rural
areas. According to a household survey (ECAM III) undertaken in 2007, poverty affected about 40% of the
population, compared with 40.2% in 2001. About 55% of the country's poor people reside in rural areas.
Low education levels and limited access to productive assets are major factors behind high levels of
poverty in Cameroon. These issues, being macroeconomic in nature, cannot be addressed instantly and
will therefore continue to adversely affect the performance of insurance industry over the forecast period

The insurance sector is regulated and supervised by a regional body, the Inter professional Committee of
the Insurance Market (Confrence Internationale des Marchs dAssurancesCIMA) established on July
10, 1992 in Yaound (Republic of Cameroon). The CIMA Treaty came into effect on February 15, 1995.
The regulatory body of the CIMA is the Regional Commission of Insurance Control (CRCA) whereas the
Council of Ministers is the supreme body. Since the reform of insurance laws in 1998, CIMA has revoked
the licenses of four insurance companies, privatized one stateowned insurance company and liquidated
the only reinsurance company in Cameroon. Despite a recent strong growth in the life insurance segment,
the insurance industry in Cameroon is dominated by nonlife insurance sector.

Cameroon is one of the fourteen Frenchspeaking African nations that ratified the InterAfrican
Conference on Insurance Markets Treaty (CIMA) and adopted a common code with respect to the
insurance sector. This supranational code is designed to regulate the insurance sector in all signatory
states. Enforcement of the CIMA code of regulations led to the closure of some weak insurance companies
and the restructuring of the sector, which is almost completed. Foreign firms can operate in Cameroon,
but they must have local partners. There are several foreign insurance companies working in Cameroon
with Cameroonian partners.

Insurance Licensing: According to the IMF's report 2000 on Licensing divided into three subcategories.
Cameroon was "fully compliant" with the two first categories general licensing and fit and proper testing.
On the other hand, it was only "broadly compliant" with the third category reliance on other jurisdiction
due to a lack of regular contact with other jurisdictions. Licensing of insurance companies in the CIMA
region is country specific, furthermore, "fit and proper testing" of owners is not formally conducted, and
owners are more strictly monitored for changes in control than during the licensing process.

3 ABOUT THE PRESENT SHORT TERM CONSULTING ASSIGNMENT:

One of the deliverable for the MicroLead Cameroon, is to develop and implement new products (Savings,
Credit and Insurance) to increase access to women and rural population.

As part of this deliverable the project team thought of exploring the various opportunities in
Microinsurance. When the project team had an internal discussion it was came out that a Microinsurance
scheme is already in place (since last 3 years) with one of the Project Partners (A3C). Hence it was decided
to have a comprehensive evaluation and further review on the current pilot which is been implemented
by A3C with the support of MIFED and NSIA (the Insurer).

For the evaluation and to suggest the further course of action on the pilot Microinsurance program, a
short term consultant has been invited to carry out the process and suggest the recommendations;

3.1 APPROACH & METHODOLOGY:

The Approach and methodology for this mission has been categorized in two levels;

The first level include meetings with the different stakeholders of the project like the Insurance Provider,
the channel partner and the other stakeholders like AFII and the MIFED to understand their vision in
promoting the Microinsurance and also to gather the progress of the project

The second level is to gathering relevant insurance data from the field through interactions with the
members and the Executive Committee of the CVECAs/CECA. By having a detailed discussions with the
Executive Committee members we tried to explore their views on the product features, process followed
and at the overall pilot implementation. At the end it is also aimed to collect random opinions of the
members on the suggestive improvements in product and processes further.

4 ABOUT THE PILOT ON MICRO INSURANCE

4.1 OBJECTIVE
Attain 10,000 members to be insured in 38 pilot CVECAs

1220 million premium and registration charges

4.2 PILOT IMPLEMENTATION STRUCTURE:

The Pilot on Micro insurance has been initiated by MIFED and NSIA (the Insurer). Before the pilot a
feasibility study has been sponsored by NSIA (the Insurer) where in an individual consultant (Mr. Kotak)
has conducted an in-depth study in the focus geography.

Based on the recommendations of the feasibility study the product of Assorisque has been designed
keeping the interests of the community in mind giving primary focus on Health aspect.

A convention has been signed between the MIFED, NSIA and A3C to launch a pilot with a view to attain
10,000 members by end of the pilot period through various CVECAs and CECAs

In the entire structure the roles and responsibilities of various parties are been agreed. For technical
assistance and Service facilitation SATA (a division of AFII) has been roped in to the program who has been
delegated with the responsibility of coordinating between the Insurer, A3C and MIFED.
Please find the operating model of the pilot program:
4.3 COMMISSION TO PARTNERS/STAKEHOLDERS:
Under the arrangement a maximum of 20% is paid as commission to various players under the pilot
program; the agreed rates of commissions are as follows:

A3C and CVECA AFII / SATA MIFED

Commissions to Partners 6% 7% 7%
(maximum 20 % )

4.4 THE PRODUCT (ASSORISQUE) FEATURES:

Assorisque which is a multi risk product of guaranty and social protection of members have following
characteristics.

Target population Members of CVECA/CECA of A3C

Age Group to be covered 21 yrs. to 65 yrs.
Insurer NSIA
Policy Holder CVECA/CECA
Type of Enrolment Individual (based on the declaration)
Death Benefit: 1. Guaranty ( Funeral Fees) in case of death: Payment of 1 million
francs in one instalment to the nominee through the CVECA
Permanent Total 2. Individual Guaranty of accident preview a payment of 500000
Disablement resulted due francs in case of death or absolute and definite in validity resulting
to accident: from an accident
Health Insurance: Health Insurance comprises six guaranty with an annual platform of
200000 francs for consultation fee, medical laboratory fee, pharmaceutical
fees, surgical fee, Hospitalization fee and maternity fee with the mentioned
sub limits for each benefit:
Consultation 1000 per event / 20,000 pa
Medical examinations 180, X Ray 750 - Max is 50,000 Pa
Surgical fee 500, minor surgeries 500, hospitalization 5000 for
3 days Max of 75000 pa
Pharmacy Actual max of 50,000 Pa
Maternity Actual max of 40000 pa

Subscription : 2000 francs

Premium : 20,000 francs annually
Frequency of Premium payment : Yearly (prorate basis based on the month of enrolment)
4.5 PILOT FACTS AND FIGURES
Year Wise Enrolments:

Year Enrolments Enrolments

Insured (no) Premium collected Claims Paid (no) Amount
2010 85 819,498 0 0
2011 931 15,487,300 21 3,466,075
2012 734 12,361,630 27 3,258,120
2013 145 2,466,150 5 2,294,290
Total: 1895 31,134,578 53 9,018,485

4.6 OBSERVATIONS:
From above table it is very clear that the policy enrolments are started dropping from the 3rd year
onwards. This may be due to service related issues, and for the current year the enrolments are at a bare
minimum level of 145 which posed a serious trouble in terms of program sustainability;

In terms of claims pay-out except for the year 2013 all others years are with around 25 to 30 % pay-out
ratios (based on the premium collected to claims paid). But for the current year the claims pay-out is at
93% which is very alarming, one of the reason for the same is again the low enrolments in the program.

When we compare the last four years performance the claim pay-out stood at 29 % which is very low in
terms of creating a positive impact on the program. Partly this may be due to low awareness levels of the
community in availing the insurance benefits. In the other way even the program can think of modifying
the Premium or enhancing the benefit

4.7 YEAR WISE CATEGORY WISE CLAIM FIGURES:

Year Funeral claims PTD arising from Accident Health Claims
No Amount Paid No Amount Paid No Amount Paid
2010 - - - -
2011 2 2,000,000 - - 19 1,466,075
2012 - - - - 27 3,258,120
2013 2 2,000,000 - - 3 294,290
Total: 4 4,000,000 - - 49 5,018,485

Observations: When we observed the trend in claiming the benefits of insurance, so far there is claims
reported in the Permanent Total Disablement (PTD) section of the policy. Where in the majority of the
claims are coming from Health and 4 claims reported for Funeral Benefits.
5 INTERACTIONS WITH THE STAKEHOLDERS:
An attempt has been made to explore the product and process of the pilot microinsurance program. For
this a one to one discussion were made with stakeholders. Stakeholders include the following;

MIFED

CVECA/CECA
A3C members & Executive NSIA
Committee members

AFII/SATA

5.1 STAKEHOLDERS
NSIA (the Insurer)
MIFED
A3C
AFII
CVECA/CECAs
Department of Insurance Ministry of Finance
Chanas Assurance company
Activa Assurance Company
Association of Assurance companies of Cameroon

5.2 INTERACTIONS WITH MIFED

MIFED is very keen in implementing the Microinsurance in its network institutions to mitigate the various
risks of the members of its member institutions. In this direction MIFED initiated a pilot program through
one of its member institution (A3C) in the year 2010.

MIFED played a lead role in bringing in various stakeholders to conceive and implement the Pilot on
Microinsurance.

Probably this was the first of its kind initiative in the formal setup in Cameroon Microinsurance sphere.

Going forward MIFED would like to play a crucial role in various capacities to strengthen and develop
Microinsurance in the country as well as in its member institutions
Efforts of MIFED for the present Pilot of Assorisque:

MIFED played a key role in bringing in various stakeholders together to create the first of its kind
pilot program in Microinsurance
MIFED is in a way very successful in articulating its institutional need in designing of a
Microinsurance product
MIFED even deputed a person to oversee the pilot operations to coordinate with various
stakeholders

Where the things gone Wrong:

When the sudden demise of the collegue who coordinating the Pilot, then the situation started
worsening
The capacity issues in Microinsurance has become a challenge
As there is no second person to take care of the pilot at MIFED, the whole thing started slipping
down
On top of that, the Insurance Operations are not been incorporated properly in to the credit
system of A3C which created a conflict in reaching out the customer
The field level staff are not been provided with any of the incentives for the enrolments

What can be done:

MIFED is still very positive to consider scaling up of the pilot

In this regard it was looking for concrete suggestions to further refine it to scale up
Even in an informal discussion it came to our notice that, if needed MIFED would like to forego
some part of its existing commissions to build a strong system of inventive for the field staff for
enrolments which can boost up their motivation.

5.3 INTERACTION WITH NSIA

NSIA group having its presence in around 12 countries, and NSIA holds 50 % of Micro Insurance business
of Mali. NSIA-Cameroon is a General Assurance company operating in Cameroon with the several lines of
business. The business lines include Automobile, Health, Travel and Asset/Property. Majority of its
portfolio is through the Health Portfolio which consists of around 40 % of the total business. Followed by
this automobile occupies 15 % of the business Share. As per the discussion it was learned that NSIA is
among the 4th/5th in ranking in the General Assurance Business in the country

The distribution channels includes;

Bank Assurance
Broking Channel
Branch Direct (through walk in) 6 Branches and one Corporate office
Commercial Agents 20 in Number
General Agents (exclusively work for NSIA) - 6 in No
Recently in July 2013 NSIA (NSIA Life) got its license for the Life Insurance Business
The pilot was started in October 2010, the product Assorisque is a bundled product with the
features of Funeral, PTD and Health
 The Assorisque product designed to accommodate enrolments throughout the year, based on the
month of enrolment the premium will be charged on prorate basis
A convention has been signed with MIFED to cover the institutions working under the umbrella
organization
Under the convention A3C is been chosen for the pilot
AFII is facilitating the process of Insurance in verifying the quality and control the health centres
and assist in delivering the services

Difficulties faced in the pilot:

Initially it was presumed that all the members of the CVECA will be enrolled for this product, based
on the same the numbers are been worked out. But in reality the scenario is been changed
Now the product is positioned more like a coverage for the Loans than for the entire members
Initially there is no problem in information flow, but there is a delay in submission of information
from partners
From October 2012 the information gap has become more severe, it may be due to sudden
demise of key colleagues who are working on this pilot in MIFED and AFII
The promotional material like brochures and postures are been created and supplied as a part of
the marketing

Future Plans on Assorisque:

With the Arrival of NSIA Life, the possibility of incorporating the Life Insurance component in
Assorisque may be explored
Product Review is due
The needs of the insured has to be collected while reviewing the product
While attempting the revision, we should insist for Mandatory Product with minimum premium

5.4 INTERACTION WITH A3C

Over all it seems A3C is not satisfied with the pilot program as it was not achieved the set
objectives
But it has given a thought in the minds of the people in realizing the importance of insurance
It has supported the organization in recovering of loan outstanding of the deceased members
without putting their family in trouble

Reasons for the short coming:

Initially It was presumed that A3C will coordinate between the NSIA and the CVECA, but in reality
it never practiced
Unfortunately NSIA has not supported as expected on ground in positioning the pilot product.
NSIA come up with some brochures and calendars and attended 2 General Assembly meetings,
other than this there is no visibility of the marketing personnel in the field
Due to poor marketing the product is not taken up as expected
Apart from this the delay in settling the commissions are taken away the motivation of the CVECA
The product review hasnt happened, initially it was agreed that the pilot will be reviewed after
two years, but in reality the review has never took place
 It was expected that MIFED will monitor and guide A3C and NSIA in steering out the pilot
Delay / high turnaround time in claim settlement

Expectations from A3C:

Immediate evaluation of the pilot has to be taken up

The product should be made more realistic in realizing the benefits to people
The processes has to be reengineered in such a way that the process inefficiencies are to be
addressed
Proper marketing plan has to be put in place
NSIA should invest in training and sensitization of the people on Insurance
Joint effort is needed from NSIA in grounding the product
The pending claims and commissions are to be cleared
If given all of these A3C is ready to scale up the product in full level and willing to place one focal
person for insurance at A3C

5.5 INTERACTIONS WITH AFII

AFII is a broking entity who is acting as a technical agency and servicing agency for the Pilot Program. AFII
is operating through the SATA (the agency responsible for the insurance processing). There is a person
who has been catering his services full time to this program;

AFII taken the time in explaining the product and process in detail. The Chairman of AFII Mr. Mintu given
us a good clarity on the pilot product and processes.

Assumptions made on the pilot:

All the active members around 16,200 will join the scheme
The agreed age group is 21 to 60 yrs.
Based on this assumptions the numbers are been worked out
Management committee(MANCOM) members will take the responsibility of enrolment and
servicing of the product
There is no incentive has been planned for the MANCOM members
There will be a focal point for insurance in every CVECA
Claims will be submitted every Monday and Insurer will clear by end of the Week (by Friday)

Where is the short fall?

The concept and the product is not properly grounded

Management committee is of the view that Insurance is Voluntary, hence it has not been
mandated at the society level
As there is no incentive for the enrolments the motivation is missing
The age limit of 60 yrs. restricted some of the Management committee members to join the
scheme which has acted negatively
In practice the product is pushed with Loan it became Loan Linked Insurance rather than
member based insurance
Due to high fluctuation in enrolments the Insurer started losing interest on the program
Further to this the delay in commission payments acted as a negative factor
 Delay in compensating the funeral benefits

What has to be corrected to make it functional?

Proper marketing support from the NSIA with brochures, postures and field presence
The program has to be managed properly
The Insurance product should not be attached to Loan
And try to meet the requirement of the customer

5.6 INTERACTION WITH DIRECTORATE IN CHARGE OF IN CHARGE:

The business of Insurance is regulated by Ministry of Finance the Directorate in charge of
Insurance Supervision & Control
The Insurance Law is common to all the countries in the CIMA Region as per the General
Agreement of CIMA, at present there are 14 countries including Cameroon.
The discussion opened up with the wordings of Insurance is not new to people of Cameroon,
there are several informal coping mechanisms like the funeral societies are existing from long
back in the community/society
But bringing these informal setups in to the formal inclusion is a greater challenge
One of the foremost challenge is creating the awareness and trust among the people to come
forward in participating for the formal programs
There are several formal schemes are been attempted by various ministries earlier. Ministry of
Health, Ministry of Agriculture and Ministry of Labour and Social Insurance has attempted several
programs which are not of great success
Due to capacity and competency issues the programs are not been able to scale up.

On Micro Insurance

There is a Micro Insurance Law has come in to force from 2011 onwards
Still it is not implemented in fully level
As per the Micro Insurance Law, allows the MFIs, Supermarkets, Post offices as Channels for
distributing of the MI
As per the law, there is a separate approval is needed to operate in the domain of Micro insurance
For the existing insurance companies it is simply to apply for the a authorization letter to deal
with the Micro insurance business as well, which will take around 2 months to grant
Apart from this a special class of Insurance companies are allowed to operate in the MI domain.
The capital requirement for the MI companies is around 500 million francs
As per the regulator so far there is no such application has been made by any existing insurers or
from the new one. The regulator is in confidence that by end of next year some companies will
come forward
CIMA will meet 4 times a year(every quarter) to discuss on the insurance matters
If anybody wants to apply for a license in MI, they need to make an application along with the
business projects on viability of the program
On MFIs distributing insurance

MFIs can be used as an authorized channel for the MI business

But the law strictly mandated to have a professional focus point in the organization
As of now there is no cap has been put in place on the insurance commissions, but the regulator
is foreseeing a scenario of keeping it around 10 %

5.7 VOICE OF PEOPLE FIELD VISIT OBSERVATIONS

As part of the field visit we had a chance of visiting one of the CVECA location (Entigili) where we met 9
members. In which 2 members are not opted for insurance. The composition is 3 female and 6 male
members.

The interaction started with a member explaining how the insurance came handy for him to cope up with
the maternity expenses of his family. Even though he is very positive in saying that, he is little concerned
about the time it has taken to process the claim

Out of 556 members of the CVECA 87 members were opted for the insurance during this year
Overall the members of the CVECA are very happy with the product features.
So far there is no single claim has been rejected from the CVECA
Broadly they are fine with the documentation requirements
Recently one of the member family is supported with a funeral benefit of 1 million francs, which
opened up discussions on insurance widely

Concerns raised by the community:

Product features are fine but the process time for settling the claim is the cause of concern ( at
times2 months)
Commissions are in pending from some time, which is acting as a demotivating factor
Due to this inadvertent delay in claim settlement the original documents are held up with Insurer
which is a problem for the member to attend the doctor for further treatment
Initially it has been told that Cash less facility is going to be created, but so far it is not been done
Only the recognized hospitals and Govt. clinics are allowed under the scheme which is far off from
the villages
The local doctors / practitioners who are in vicinity are not been considered under this scheme
In practice the insurance has been linked to the Loan, which is adding extra burden to the
customer/borrower
The limit of 80 % in health is not been communicated properly, sometimes the members are not
sure what they can claim and what is the limit for that particular expense
Some of the big hospitals are not giving the originals, as a result the members are at disadvantage
to claim for insurance

Suggestions and comments to improve:

Pending claims should be cleared immediately

Improvement is needed in Turnaround time for claim settlement, it should not cross more than 2
weeks
The commission should be at least 5 % of the premium
 Information flow has to be clear
Cash less facility has to be made available at the local level, so that the member will not be in a
stress when he need some medical support
Some members felt that spot payment of claims has to be looked in to
Even members are interested to enrol their family members, but the present policy will not allow
the non-members to be a part of the scheme
Some of the members even requested for a package policy which can cover their lives and
livelihoods like crops, cattle and other property

5.8 VISIT TO CECA

The second location we visiting is OBALA, which is a semi urban location, which has 939 members
but current year there is no enrolments for the insurance program
In the previous year they had around 66 enrolments and benefitted with 6 claims
When the program is launched the beginning is very tough, after making efforts in sensitization
and linked the product to the loans which has given momentum.
To create the trust over the community the funds are been deposited in a specified account of
the insurance company which was opened in the local area
People are of the wrong conception that Insurance companies will never pay the claims in time
Initially the scheme went off smoothly for some time, once the person at AFII is passed away the
entire system came to a halt (around Jan 2013)
As per the initial understanding the information should be flown through A3C but in reality the
Insurer started dealing directly with the CECA/CVECA, which created some problem in the system

Suggestions to improve;

The present product is having some exclusions, people of expecting the product should cover all
the deceases with minimal exclusions
The age group allowed is one of the issue, the present product allows the age group of 21-60 only
which is demotivating
Even it takes to reduce the cover there is no issue, but it should cover all the members who
thought of enrolling irrespective of age
The system has to be very structured and the information flows has to be very clear
6 MAJOR OBSERVATIONS:

At the program level At the product and Process At the Field level
level
POSITIVES / STRENGTHS
The effort made by the The process followed in The community needs are
program in putting the designing the product and been well understood
various stakeholders on a the process is really good. The involvement of the
single platform is The way the details are CVECA/CECA and the
commendable been handled while Executive committee is well
The program identified the designing the structured
needs of the people rightly product/process is very Making the Executive
and culminated the same in well thought off committee members
to meaningful program to The product given responsible for enrolment
reach the people preference to the choices and claims is a good initiative
The way the program is been of people by incorporating
designed by involving MIFED, the funeral, health and
A3C and NSIA and AFII is quite PTD
well thought off
Short Fall / Gaps
Ongoing program support is The product is having too At the field level the program
missing many exclusions is not been grounded
Steering out the project and The age band is one of the properly
periodic review of the demotivating factor The assumption of enrolling
program is missed out Unable to create the every member is gone for a
The dialogue between the health toss
stakeholders is not been infrastructure(medical In reality it became a loan
continued once after the service providers) created linked insurance product
launch a problem The support of the insurer is
Over dependency on specific The gap in communication missing at the field level
individuals, both at MIFED and the delay in claims The incentive mechanism is
and AFII, alternative is not taken away the not been properly put in
been created motivation place- even though there is an
It gone with an assumption incentive created in the
that the process will take care program(a discount in
of the things premium) never it has been
Poor visibility of the program initiated
at the CVECA/CECA level Proper incentive system to
The utilization of the program motivate the ground
is very less (around 30% pay- structure is not been put in
outs) place.
7 RECOMMENDATIONS:
Based on the interactions with various stakeholders and the subsequent interactions with some of the
members of the CVECA/CECA we recommend the following for your reference and further action;

The recommendations are been categorized in three levels, i.e., at the program level, at the process and
product level and at the Field level. Further to this the recommendations are been further categorized
for Immediate attention to take control over the situation and Recommendations to enhance and extend
the program further;

7.1 RECOMMENDATIONS FOR IMMEDIATE ATTENTION:

As indicated in the earlier section on Observations, it needs a firm action in streamlining the pilot
program. Which can be initiated by MIFED by involving all stakeholders include A3C, NSIA and
AFII. This can be initiated by calling off for a high level meeting with all the stakeholders to review
and discuss about the pilot program

The things that should be given due attention is

o The reconciliation of premiums collected Vs. Premiums remitted to Insurer - this is

mainly for the benefit of taking a stock of collections vs. remittances, so that any of the
missed out proposals can be booked at the insurer

o Reconciliation of Commissions to various stakeholders this is primarily will be

addressed once all the policy bookings will be done; as of now some of the stakeholders,
mostly the field level is pointing out on the commissions payable;

o Reconciliation of Claims - this can be initiated from the CVECA/CECA level by taking a
declaration on the pending claims. Which will ensure to clear the pending claims at
various levels. Finally a list can be arrived by consolidating all the pending claims and a
cut-off date has to be agreed with the Insurer to clear these claims

Further to this, initiate discussion on preparing action plan to implement full level program ;

7.2 RECOMMENDATIONS ON THE PILOT PROGRAM:

7.2.1 Program Level:
At the program level the expectations of all the stakeholders has to be discussed in detail and a
collective opinion has to be arrived on

o Who will do what

o When it will be done

o And what is the frequency of review for the program

The necessary modifications in the product and process are to be agreed and implemented

Proper plan for the launch and marketing with defined roles and responsibility are to be agreed
 A thorough review to be done he current incentive mechanism, if necessary the present level of
commission sharing has to be revised in such a way that the ground level people working on the
product(at CVECA/CECA) level will also be properly rewarded

Focus points has to be created in each of the CVECA/CECA and at the A3C central office to deal
with AFII and NSIA on a regular basis. Apart from this a focus point has to be created at MIFED to
oversee the progress of the program

A high level review and monitoring committee has to be put in place by involving all stakeholders.
This committee has to meet in frequent intervals to review the progress and to guide accordingly
from time to time

As part of the Marketing plan, a clear plan to build the customer awareness and channel
competency has to be looked in to, in this MIFED can act as a liasioning agency in collaborating
with required agencies

7.2.2 Product Level:

Over all the existing product (Assorisque) has been well received by the community. In the
prioritization of risk, health occupies the first and prominent place which has been addressed by
the present product. In our sense the low enrolments may be due to improper marketing efforts
and low visibility of the product;

In our opinion the following enhancements are recommended at the product level;

o Enhancement in the age bracket for the product. At present the product is open up to
the age of 60. But some of the members are feeling it as a constraint. Majority of the
executive members whom are elders are unable to get the benefit of this product. Hence
based on the underwriting norms of the insurer if possible the age limit for enrolment has
to be enhanced to a reasonable level; as the product is performing at around 30 % pay-
out still we feel there is hope to experiment on this;

o A review on the existing exclusions like the Diabetic, hypertensive and other deceases,
some of the members feeling this as a bottleneck. As the product performance is in
positive trend still there is a chance to relook on this. We should propose this to the
insurer to consider this positively. In case of any need even inclusion of some of the
deceases which were previously excluded can be done with loading of some extra
premium

o It was recommended that the event limits of some of the benefits has to be relooked, as
with passage of the time (since the product is designed in 2010) the cost of services may
gone up

Hospitalization limit was fixed at 5000 for 3 days. We should explore the
possibility of whether to enhance the days limit or the amount limit to a
reasonable level

Same should be applied to surgical and minor surgeries, the present limits seems
to be very low
 o And it was recommended to keep the product open for the enrolment of the family
members of the registered members of the CVECA/CECA

7.2.3 Process Level:

The product has been very well received by the community, in terms of service there is some kind
of inefficiencies are been noticed

It was recommended to have a thorough check on the present process to align the product
servicing with the existing Microfinance operations. SAT has to own up the responsibility of
overseeing the operations of the insurance scheme as well

process has to be made transparent by communicating the frequent information to the focus
persons and further to the community to eliminate the information gaps and mistrust

The transit of various claims documents has to be properly tracked and recorded to boost up the
efficiencies which will in turn contribute to enhancement in turnaround time of claim settlements.
A system of acknowledgement of claim at various levels has to be initiated

A system of periodic reconciliations of premium, claims and commissions has to be put in place

7.2.4 Field Level:

At present the visibility of the program is not been highly effective at the field level (at
CEVICA/CECA). It was recommended to enhance the visibility by way of display boards on

o Product features

o Enrolments so far

o Claims settled so far

Which will in turn boost up the visibility and contribute positively for the scaling up

Proper tracking mechanism has to be adopted, it may be advised to use manual registers at the
CEVICA/CECA level to record all the transactions related to claims movement, so that at any point
in time the societies are better equipped with the information which at their disposal

A marketing plan with the involvement of the community (executive committee) has to be put in
place. Which has to be supported by the insurance company
7.3 RECOMMENDATION ON NEW PRODUCTS:
The present product of Assorisque is designed keeping the members as target beneficiaries, but in reality
the product has been utilized as a loan linked product. With this it is clearly evident that there is a demand
for the loan linked insurance. With this we can think of some different product suit to cater to this
segment; the following options can be explored in this regard;

7.3.1 For Members of the CVECA/CECA:

o A product which can cover the member Health, funeral and accidental related risks. It can
be a revised Assorisque with enhancement of benefits as outlined in the product
recommendations.

o Further to this a product aiming the households of the registered members has to be
explored to cover the entire family. For this an option of looking at an family floater sum
insured in Health and individual per member cover for Life can be explored, which can
serve as a member+

7.3.2 For Loan Customers: (credit +)

o To cover the loan customers, an option of add on Life insurance cover(equal to the Loan
amount) on top of the mandatory product(revised Assorisque) can be explored

o Further to this the loans can be segmented based on the amount of loan, in to various
brackets of small, medium and High and applying a uniform factor for add on life cover
can be explored

An option of clubbing the life and other insurance covers like Livestock, property and agriculture
can be explored in future

Some of the sample product sheets are been attached in the annexure;

8 CONCLUSION:
Over all the Assorisque product is the first of its kind in the Cameroon Market and in a way it can be
seen as the first Micro insurance pilot in the market led model of Cameroon. Cumulatively since 2010 it
has insured 1853 members and paid around 53 claims. When we observe the overall performance of the
product the utilization levels are seems to be very low. It may be due to poor awareness of the community
in utilizing the benefits of the product. But it is one of the early pilots in Microinsurance of Cameroon on
which the further work has to be built on.

When we interacted with various stakeholders, we havent come across any serious issues of concern. On
a whole the people are satisfied but there are some operational issues which can be corrected
immediately to sort out the gaps.

The product of Assorisque created a sense of Insurance in the minds of the target community, which
further has to be channelled in to fine tuning the product and scale it up in a big way

To Clear the issues of gaps there are certain recommendations are been indicated in section 7.0, which
has to be focussed immediately by MIFED and A3C to sort out the issues.
The overall recommendations are been indicated in various levels, i.e., program level, product level,
process level and field level. Some of the highlights of the recommendations are;

A brainstorming at the program level has to be done to correct the issues of concern, the
expectations of the various stakeholders is to be clearly discussed and agreed. In a way the
responsibility grid on who will do what has to be arrived
A clear cut marketing plan with agreed numbers has to be put in place
The necessary modifications at product level has to be considered
The Insurance Operations are be incorporated in to the Microcredit operations, so that SAT will
be owning up the entire operational responsibility
The age brackets for enrolment, the probable inclusions of deceases and various sub limits of
claim event(per event limit) has to be thoroughly discussed and if possible explore the possibility
of considering to the extent possible
While planning the marketing activity the ground level members are to be taken in to confidence
A budget to sensitize the community on the need and importance of insurance has to be agreed
upon and a program to that extent has to be designed and rollout

If the efforts are been put in this direction we hope the product will pave out the way for a big launch
across the institution to create the bigger impact and outreach.

In the new product category a product, may be the enhanced Assorisque can be made mandatory for all
the members and further to this the products for covering the households of members has to be explored
to protect the member and member families. At the second level the loan customers has to be
encouraged to go for add on Life covers for the quantum of loan availed, which can cover the risk of
natural death as well; in this way the credit portfolio can be better protected.
9 ANNEXURES

9.1 WORK PLAN FOR THE SHORT TERM CONSULTING ASSIGNMENT:

Task Particulars Action Plan Scheduled Time Status
Date
Individual working Session with all Meeting with MIFED 9/23/2013 3.30 PM
stakeholders include MIFED, A3C,
NSIA and AFFI
o Take stock on the situation Meeting with A3C 9/26/2013
o Role of each stakeholder Meeting with AFII 9/24/2013 2.30 PM
o Expectation on service and Meeting with NSIA 9/24/2013 10.00 AM
products
Field Exposure Field Visit in A3C 9/25/2013 8.00 AM
CVECA/CECA
o Practical experience in the field 9/27/2013 8.00 AM
o Institutional organization and 9/28/2013 8.00 AM
process flow
Joint working session with Meeting with 10/3/2013 2.30 PM
stakeholders(MIFED, A3C, NSIA and partners
AFFI)
Exploring various Insurance service Meeting with 10/2/2013
providers Insurance
Companies
Interaction with CIMA and 10/1/2013 3.00 PM
Association of Insurance Supervisors
Interaction with CEC on Micro Meeting with CEC 10/2/2013 11.30
Insurance AM
Debriefing to MicroLead Project 10/4/2013
team
9.2 DETAILS OF PEOPLE CONTACTED:
Sl. No Name Designation Organisation Contact No.
1 Simon Yon Tjega GM MIFED
2 Soulemane Djobo Project Lead UNCDF
Cameroon
3 Chandramouli A Long Term Technical Advisor UNCDF
Cameroon
4 Fri ASANGA Advisor MLE CMR MIFED 70652481
5 Luc Roger NGAN KOTOCK Cadre NSIA Vie NSIA 99 89 09 13
6 MINTOU III Marcel Chairman (PCA) AFII SA 99 68 07 48
Emmanuel
7 MFANGAM Justine General Manager AFII SA 99 99 20 32
8 Nyobe Djon Marc Franois Responsable Commercial AFII SA
9 Mayack Marie-Louise Responsable par Intrim
d'Assorisque
10 Martin Patrice MOUNE Directeur General Adjoint A3C 99785865
11 Aloys MBALLA Directeur General A3C 77576993
12 Ayaba BAGAGNA Inspecteur CRATED 77743067
13 Nguimbock Director of supervision and Department
control of insurance
, MINFI
14 Zinga Ndzono Board chairman A3C
15 Mrs Awono GM CECA of
Obala
16 Marthe Marcelle HOGA Technical Department, A3C 99 83 3 24
17 Norbert NGNIWAKE Director of Administration and NSIA 75 29 76 7
Finance
18 George MANDENG LIKENG Secretary General ASAC 99 85 71 95
19 Valerie Francis BALIABA Charge detude ASAC 99 83 78 25
20 Henri Theodore BAYOUAK DIRECTEUR Reassuance , ACTIVA 96 94 85 91
Actuariat & Developpement
produits
21 Martin Patrice MOUNE Directeur General Adjoint A3C 99 78 58 65
22 Luc Roger NGAN KOTOCK Cadre NSIA Vie NSIA 99 89 09 13
23 MINTOU III Marcel Board chairman AFII 99 68 07 48
24 NFANGAN Justine General Manager AFII 99 99 20 32
25 Jean Pierre YOBO-AMBA Advisor MLE MIFED 77 32 53 87
9.3 DETAILS OF MEETINGS:
WORKING SESSION WITH MIFED
Attendance list 23/09 /2013

No Name Function Structure Contact

1 Simon Yon Tjega GM MIFED
2 Satheesh A. STC BASIX
3 Chandramouli AKKIRAJU Long term adivisor MicroLead 70385076
4 Fri ASANGA Advisor MLE CMR MIFED 70652481

WORKING SESSION WITH NSIA

Attendance list 24/09 /2013

No Name Function Structure Contact

1 Luc Roger NGAN KOTOCK Cadre NSIA Vie NSIA 99 89 09 13
2 Satheesh A. STC BASIX
3 Chandramouli AKKIRAJU Long term adivisor Microlead 70385076
4 Fri ASANGA Advisor MLE CMR MIFED 70652481

WORKING SESSION WITH AFII

Attendance list 24/09 /2013

No Name Function Structure Contact

1 Satheesh A. STC BASIX
2 Fri ASANGA Advisor MLE CMR MIFED 70652481
3 MINTOU III Marcel Emmanuel Chairman (PCA) AFII SA 99 68 07 48
4 MFANGAM Justine General Manager AFII SA 99 99 20 32
5 Nyobe Djon Marc Franois Responsable AFII SA
Commercial
6 Mayack Marie-Louise Responsable par
Intrim
d'Assorisque

WORKING SESSION WITH CVECA OF ENDINGUILI

Attendance list 25/09 /2013

No Name Function Structure Contact

1 Satheesh A. STC BASIX
2 Fri ASANGA Advisor MLE CMR MIFED 70652481
3 Martin Patrice MOUNE Directeur General A3C 99785865
Adjoint
WORKING SESSION WITH A3C
Attendance list 26/09 /2013

No Name Function Structure Contact

1 Satheesh A. STC BASIX
2 Fri ASANGA Advisor MLE CMR MIFED 70652481
3 Aloys MBALLA Directeur General A3C 77576993
4 Ayaba BAGAGNA Inspecteur CRATED 77743067

WORKING SESSION WITH DEPARTMENT OF INSURANCE, MINISTRY OF FINANCE (MINFI)

Attendance list 27/09 /2013

No Name Function Structure Contact

1 Satheesh A. STC BASIX
2 Fri ASANGA Advisor MLE CMR MIFED 70652481
3 Nguimbock Director of supervision Department of
and control insurance , MINFI

WORKING SESSION WITH CECA OF OBALA

Attendance list 27/09 /2013

No Name Function Structure Contact

1 Satheesh A. STC BASIX
2 Fri ASANGA Advisor MLE CMR MIFED 70652481
3 Zinga Ndzono Board chairman A3C
4 Mrs Awono GM CECA of Obala

WORKING SESSION WITH CHANAS ASSURANCE S.A.

Attendance list 01/10 /2013

No Name Function Structure Contact

1 Satheesh A. STC BASIX
2 Fri ASANGA Advisor MLE CMR MIFED 70652481
3 Chandramouli AKKIRAJU Long term adivisor Microlead 70385076
4 Marthe Marcelle HOGA Technical Department, A3C 99 83 3 24
Insurance des personnes

WORKING SESSION WITH NSIA HEAD OFFICE

Attendance list 02/10 /2013

No Name Function Structure Contact

1 Satheesh A. STC BASIX
2 Fri ASANGA Advisor MLE CMR MIFED 70 65 24 81
3 Chandramouli AKKIRAJU Long term adivisor MicroLead 70 38 50 76
4 Norbert NGNIWAKE Director of Administration NSIA 75 29 76 7
and Finance
WORKING SESSION WITH ASAC
Attendance list 02/10 /2013

No Name Function Structure Contact

1 Satheesh A. STC BASIX
2 Fri ASANGA Advisor MLE CMR MIFED 70 65 24 81
3 Chandramouli AKKIRAJU Long term adivisor Microlead 70 38 50 76
4 George MANDENG LIKENG Secretary General ASAC 99 85 71 95
5 Valerie Francis BALIABA Charge detude ASAC 99 83 78 25
6 Henri Theodore BAYOUAK DIRECTEUR Reassuance, ACTIVA 96 94 85 91
Actuariat & Developement
produits

RESTITUTION MEETING WITH STAKEHOLDERS AT MICROLEAD OFFCE

Feuille de prsence du 03/10/2013

No Name Fonction Structure Contact

1 Satheesh A. STC BASIX
2 Chandramouli AKKIRAJU Long Term advisor MicroLead 70 38 50 76
3 Fri ASANGA Advisor MLE MIFED 70 65 24 81
4 Martin Patrice MOUNE Directeur General Adjoint A3C 99 78 58 65
5 Luc Roger NGAN KOTOCK Cadre NSIA Vie NSIA 99 89 09 13
6 MINTOU III Marcel Board chairman AFII 99 68 07 48
7 NFANGAN Justine General Manager AFII 99 99 20 32

DEBREIFING AT MICROLEAD OFFCE

Feuille de prsence du 04/10/2013

No Name Function Structure Contact

1 Satheesh A. STC BASIX
2 Chandramouli AKKIRAJU Long Term advisor Microlead 70 38 50 76
3 Fri ASANGA Advisor MLE MIFED 70 65 24 81
4 Jean Pierre YOBO-AMBA Advisor MLE MIFED 77 32 53 87
9.4 SAMPLE PRODUCT FEATURES:

Member Plus : for the household members of the registered members

Target Clients For all the family members

Group or Individual Product Group Product
Type of Product Family - Floater
Member Plus
Sum Assured A floater sum assured of 500,000 in Health
and individual limit for accidental and
funeral
Premium Payment Frequency Upfront payment like the Assorisque

Age Group children to 65 yrs

Nomination facility Available
Process of Claim Payment In case of claim, the proceeds will be
adjusted against the loan amount and any
balance will be passed on to the nominee

Credit Plus- as an add on cover for members availing Loan:

Target Clients For all Loan customers can be an add on

cover
Group or Individual Product Group Product
Type of Product Term Product-Life Insurance
Credit Plus
Sum Insured Can be equal to the Loan Amount
Sum Insured Equal to the Loan Sanctioned Amount, up
to a Max of XX, or even with different slabs
1) Loans upto 100,000 Francs
2) Loans between 100,000 to 150,000
Francs
3) Loans between 150,000 to 200,000
4) Loans beyond 200,000
Premium Payment Frequency Monthly collection along with loan
instalment

Age Group 18 yrs to 65 yrs

Nomination facility Available
Process of Claim Payment In case of claim, the proceeds will be
adjusted against the loan amount and any
balance will be passed on to the nominee