Life Micro Insurance in Assam-A Case Study

Micro insurance is a tool for investment, savings and as a measure of social security to the poor. It increases the livelihood of the poor where they can eat well, have good health since they wouldn’t have to save as much for emergencies. This research paper discuss about growth of microinsurance in India as well as in Assam. The micro insurance providers are seventeen in number in India. The numbers of micro insurance agents are in growing trend both in LIC of India and in private insurers too. The study concludes that the growth rate micro (life) insurance sector is not positive through the years as started it.

The Indian regulator (IRDA) has bought in specified micro insurance regulations in November 2005, in which the regulator has undertaken the product design, specifying a distribution channel in form of NGO, Self Help Group or a MFI and the pricing mechanism to insurers. Insurance Regulatory Authority of India (micro insurance) Regulation 2005 has been stated mainly two types of micro insurance: General micro insurance product: General micro insurance product means any health insurance contract, any contract covering the belonging, such as hut, livestock, or tools or instruments or any personal accident contract, either on individual or group basis, as per terms stated in schedule-I appended to the regulations, Life micro insurance product: Life micro insurance product means any term insurance contract with or without return of premium, any endowment insurance contract or health insurance contract, with or without an accident benefit rider, either on individual or group basis, as per terms stated in schedule-II appended to the regulations.

Micro Insurance Products in India:
There are 24 life insurance companies are present in India but only 17 companies are providing micro insurance products this clearly give an idea of low attraction of majority of companies towards these products. Below is the list of micro insurance products along with the name of companies: Note: All Micro-insurance products and products falling within the parameters prescribed under the IRDA (Micro-insurance) Regulations, 2005, but launched prior to the said Regulations.

Need of study:
Insurance plays the important role in the economic development of the country. It helps for the mobilization of savings of people, specially from middle and lower income group. But any research has not been taken yet in promoting activities and implementing plans of micro insurance in Assam. The trends of micro insurance in Assam are still remaining as unknown. The researcher intends to focus a picture on the growth of life micro insurance on Assam.

OBJECTIVES OF THE STUDY:
1. To study the awareness level of micro insurance among the poor people of Assam. 2. To study the growth of life micro insurance in India as well as in Assam.

LITERATURE REVIEW:
The present study embodies a brief review of the research done in the area of micro insurance. The purpose of reviewing the earlier studies is to economize the historical and present prospective of the present work and the related studies which have been taken cognizance of one or more variables includes in the study. Dr. Ashfaque Ahmed (2013) 1 in his study "perception of life insurance policies in rural India" reveled that there is low level of awareness and understanding of life insurance products. There are various factors that influence consumer thinking when they are planning to invest in insurance scheme. Most of the customers show their interest in life insurance having higher risk coverage and also for good return with safety. The roles played in perception of life insurance policies in rural market by members of the family varies with knowledge parameters as well as with the typed of products and sometimes with the company name also. While a number of psychological variables are useful in obtaining into consumer's perception towards buying life insurance policies in rural areas. The insurance company name also plays an important role in purchasing. Ramanathan, K.V. (2011) 2 research has resulted in the development of a reliable and valid instrument for assessing customer perceived service quality, awareness level, and satisfaction level of customers towards life insurance industry. Here, service quality needs to be measured using a six dimensional hierarchal structure consisting of assurance, competence, personalized financial planning, corporate image, tangibles and technology dimensions. Syed Abdul Hamid& Roberts & Paul Mosley (2010) 3 in the study shows that there is a positive impact of micro health insurance in the reduction of poverty among rural households of Bangladesh. Micro health insurance has a significant beneficial effect on food sufficiency of poor's and has a dynamic improvement in the health status of poor rural households. Gunita Arun Chandhok (2009) 4 The result of study indicates that there is a huge untapped market for micro health insurance and majority of population are aware and understand the importance of micro health insurance. Thus, micro insurance will go a long way in eradicating poverty. If the various micro insurance models are implemented effectively by Insurer, MFI"s, SHG"s, NGO"s, Health institutions, Donors and Co-operatives the BPL population will lead a peaceful and secure life.

FINDINGS AND ANALYSIS:
The data are first edited, coded and tabulated for analyzing by using diagrams, graphs, charts, pictures etc. Data analysis is the process of planning the data in an ordered form, combining them with the existing information and extracting from them. Interpretation is the process of drawing conclusions from the gathered data in the study. In this research the researcher has analyzed the data using percentages and graphs. The various attributes were analyzed separately and the importance to each was calculated on the basis of the percentage. The rank having the maximum percentage was taken to be preferred importance to the particular attribute.

Growth of micro insurance in India:
The micro insurance business in India cannot make a continuous progress in both public insurance and private insurance companies. More life and group operations and many fresh policies have been launched by the insurance companies. The distribution system of policies has also been strengthened substantially, and the new business of micro insurance has shown a sufficient growth though the mass is still very low.  Table clearly revealed that public insurance companies have increased the percentage of policies in first six years but in the last two years it is negative growing rate. On the other hand, private insurance companies have increased percentage policies not less than 400% whether it is some time increased or decreased. Similarly public insurance companies have increased growth rate for premium from the first six year satisfactory but in the last two years the growth rate of premium is very low. But the private insurance companies have maintained a satisfactory growth rate in case of the premium amount. Therefore, the tables reveal that in case of individual micro insurance business the overall policies issued by private insurance companies is more than public insurance company but the premium collection rate of public insurance companies is higher. Similarly in group micro insurance business private insurance companies overall growth rate is higher in number of schemes issued and premium collection but negative in lives covered then public insurance companies.  The Table-  In table-6 it is clearly revealed that the Life insurance Company of India, Guwahati Division insurance agent increased from 27 in the year 2010-11 to 126 in the year 2016-17 but only 23 insurance agents are working actively in the year 2016-17. It focuses that the public insurance company cannot attract the mass people to micro insurance in Assam.

CONCLUSION:
Micro insurance is just one of the several risk pooling tools available to low income people. Micro insurance sector can play a vital role in developing of our economy. But all the insurance companies except LICI have reduced working on micro insurance because of many people not came forward to act as agents or intermediaries for providing life micro insurance. Micro insurance providers should begin by training and educating key intermediaries in the idea of promoting insurance and private insurers should also begin developing relationships with existing delivery channels The insurance companies should innovate products and distribution beyond the regulatory requirement to conduct business in the low income segment.