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CHAPTER - 11
RURAL AND SOCIAL SECTORS
PRESENTED BYNEHA A. DIVEKAR, A.A.OP&GS DEPARTMENT, C.O.
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RURAL AND SOCIAL SECTORS
LEGAL PROVISIONS SECTIONS 32B AND 32C HAVE
BEEN ADDED TO THEINSURANCE ACT, 1938, VIDEPARA 19 OF THE FIRSTSCHEDULE OF THE INSURANCE
REGULATORY ANDDEVELOPMENT AUTHORITY ACT,1999
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RURAL AND SOCIAL SECTORS LEGAL PROVISIONS
32B INSURANCE BUSINESS INRURAL OR SOCIAL SECTOR
MANDATORY FOR ALL THE INSURERSTO UNDERTAKE LIFE INSURANCE OR
GENERAL INSURANCE BUSINESS IN THERURAL OR URBAN SECTOR
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LEGAL PROVISIONS 32C. OBLIGATIONS OF INSURER EVERY INSURER HAS TO PROVIDE LIFE
INSURANCE POLICIES TO THE PERSONS
RESIDING IN THE RURAL SECTOR,
WORKERS IN THE UNORGANIZED ORINFORMAL SECTOR OR FOR
ECONOMICALLY VULNERABLE OR
BACKWARD CLASSES OF THE SOCIETY
AND OTHER CATEGORIES OF PERSONSAND SUCH INSURANCE POLICIES SHALL
INCLUDE INSURANCE FOR CROPS.
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NOTIFICATION OF
REGULATIONSTHE REGULATIONS WERE AMENDED IN
OCTOBER 1992 AND NOTIFIED IN THE
OFFICIAL GAZETTE DATED 16.10.2002.
A FEW DEFINITIONS ARE GIVEN
AS FOLLOWS :
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DEFINITIONS THE RURAL SECTOR - A PLACE IN
WHICH, AS PER THE LATEST CENSUS,
- THE POPULATION IS LESS THAN 5,000,
- THE DENSITY OF POPULATION IS LESSTHAN 400 PER SQUARE KILOMETER AND
- MORE THAN 25% OF THE MALE WORKING
POPULATION ARE ENGAGED INAGRICULTURAL PURSUITS.
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DEFINITIONS
AGRICULTURAL PURSUITS are definedas cultivation, agricultural labour, work in
livestock, forestry, fishing, hunting,
plantation, orchards, and allied activities.
THE SOCIAL SECTOR is defined asincluding the unorganized sector, the
informal sector, the economically vulnerable
or backward classes and other categoriesof persons, both in rural and urban areas.
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DEFINITIONS UNORGANIZED SECTOR
is defined as including self-employed
workers such as agricultural labour, beedi
workers, brick kiln workers, carpenters,
cobblers, construction workers, fishermen,
hamals, handicraft artisans, handloom and
khadi workers, lady tailors, leather and
tannery workers, papad makers,powerloom workers, physically
handicapped self-employed persons, etc.
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DEFINITIONS
THE INFORMAL SECTORis defined as the small scale, self-employedworkers typically at a low level of organizationand technology, with the primary objective of
generating employment and income withheterogeneous activities like retail trade,transport, repair and maintenance, construction,personal and domestic services, and
manufacturing with the work being mostly labourintensive, having often unwritten and informalemployer-employee relationships.
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REGULATIONS REGARDING
BUSINESS IN RURAL SECTORInsurers who begin to transact life insurancebusiness in the year 2000 or later, arerequired by these regulations to write, in the
rural sector,At least 7 % the total policies written direct, inthe first financial year, going up to
9% in the second financial year,
12% in the third financial year,
14% in the fourth financial year and
16% in the fifth financial year.
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REGULATIONS REGARDING
BUSINESS IN SOCIAL SECTORWith regard to the social sector, for
private insurers the obligations are laid
down as :5000 lives in the first financial year,
7500 lives in the second financial year,
10000 lives in the third financial year,15000 lives in the fourth financial year,
20000 lives in the fifth financial year.
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REGULATIONS REGARDING
BUSINESS IN SOCIAL SECTOR With regard to existing insurers, the
regulations provide that obligations
would be decided by the IRDA afterconsultation, but the quantum would
not be less than what had been
recorded for the year ended31.3.2002.
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POTENTIAL IN RURAL
SECTOR
There is a vast potential of more than 5 lakhvillages in India with a total population of nearly 75crores.
Nearly 25% of them are below the poverty line
compared to only about 7% in the urban areas. Nearly 1.5 crores households in the rural areasconsidered to have an annual income ofRs.50,000 or above.
More than 3,500 branches of commercial banksoperate in the rural areas, apart from the banksexclusively concerned with agriculturaldevelopment.
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LICs BUSINESS IN RURAL SECTOR
The LIC's business from the rural areas had beenincreasing steadily.
In 1997-1998, the business was more than 52% innumber of policies and more than 42% in sumassured. This is apart from the business coveredunder group schemes in the social sector.
The awareness about life insurance is not as lowas it used to be some thirty years ago.
The LIC had been doing intensive publicity
through the mobile vans and other traditional aswell as non-traditional media. The radio andtelevision broadcasts reach almost every villagethrough community sets.
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NEED FOR INSURANCE IN
SOCIAL SECTOR The benefits of life insurance are needed mostby people in this sector, as they are relatively
poor and have very little savings, if at all.
Soon after nationalization of life insurance,this need was recognized and efforts were
made to introduce what was called 'mass'
insurances. The concept was to cover very large
numbers of poor people in one scheme.
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VARIOUS SCHEMES
LANDLESS AGRICULTURAL LABOURERSGROUP INSURANCE(LALGI).
INTEGRATED RURAL DEVELOPMENTPROGRAM(IRDP).
SOCIAL SECURITY GROUP SCHEMES(SSGS).
RURAL GROUP LIFE INSURANCE SCHEMES(RGLIS).
JANASHREE BIMA YOJANA(JBY). KRISHI SHRAMIK SAMAJIK SURAKSHA
YOJANA(KSSSY).
SHIKSHA SAHAYOG YOJANA(SSY).
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Landless Agricultural Labourers Group
Insurance Scheme - LALGI
LICS CONTRIBUTION IN THIS AREA STARTED WITHLALGI ( Landless Agricultural Labourers GroupInsurance Scheme) FIRST MAJOR SOCIAL SECURITY SCHEMESTARTED FROM 1ST APRIL, 1987. GUJARAT IS THE PIONEER STATE AGE LIMIT 18 yrs. TO 60 yrs. SUM ASSURED Rs.1000/- PREMIUM WAS BORNE BY GUJARAT GOVT.
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LALGI Contd... GOVT. OF INDIA EXTENDED THE SCHEMETHROUGHOUT THE COUNTRY ON 15TH AUGUST,1987.
WORLDS LARGEST GROUP SCHEME COVERING1.2 Cr. LABOURERS. SUM ASSURED Rs. 2000/- PREMIUM WAS PAID OUT OF SOCIAL SECURITYFUND ( THIS SCHEME WAS WITHDRAWN FROM14TH AUGUST 2000).
(IRDP) INTEGRATED RURAL
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(IRDP) - INTEGRATED RURAL
DEVELOPMENT PROGRAMME
INTRODUCED IN 1988-89. COVER Rs.6000/- TO BENEFICIARIES OF
IRDP.
DOUBLE ACCIDENT BENEFIT
NOW REPLACED BY SWARNAJAYANTI GRAM
SWAROZGAR YOJANA.
NO PREMIUM.
CLAIMS SETTLED FROM SEPARATE FUNDCREATED FOR THE PURPOSE.
S G S
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Swarnajayanti Gram Swarojgar
Yojana - SGSY
THE SCHEME IS ADMINISTEREDTHROUGH DISTRICT RURALDEVELOPMENT AGENCY COMING UNDERZILLA PARISHAD.
ALL THE PERSONS BETWEEN 18 AND 60YEARS AND RECEIVING SUBSIDY /FINANCIAL ASSISTANCE / LOAN UNDER
THIS SCHEME ARE COVERED UNDERTHIS SCHEME FOR A PERIOD OF 5 YEARS
FROM THE DATE OF DISBURSEMENT OF
LOAN.
(SSGIS) SOCIAL SECURITY
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(SSGIS) SOCIAL SECURITY
GROUP INSURANCE SCHEME
Cover up to Rs.5000/- Premium Rs.10/- per 1000 S.A. per member :
- 50% by member/ Nodal Agency.
- balance 50 % from SSF.
Accident benefit
- death/total disability Rs.25,000/-
- partial disability Rs.12,500/-
24 approved groups. No new schemes w.e.f. 10.8.2000 - old
schemes only can be renewed.
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24 APPROVED OCCUPATIONS1 Beedi Workers 2 Brick Kiln Work3 Carpenters 4 Cobblers
5 Fishermen 6 Hamals
7 Handicraft Artisans 8 Handloom Weavers9 Handloom & Khadi Weavers
10 Lady Tailors
11 Leather & Tannery Workers
12 Papad Workers attached to SEWA
13 Physically Handicapped Self Employed Persons
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24 APPROVED OCCUPATIONS14 Primary Milk Producers15 Rickshaw Pullers / Auto Drivers
16 Safai Karmacharis
17 Salt Growers
18 Tendu Leaf Collectors19 Scheme for the Urban Poor
20 Forest Workers
21 Sericulture
22 Toddy Tappers23 Powerloom Workers
24 Hilly Area Women
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SOCIAL SECURITY FUND
SOCIAL SECURITY FUND CREATED IN 1988-89.
USED TO SUBSIDISE PREMIUM.
50% FOR SOCIAL SECURITY GROUP SCHEMES.
100% PREMIUM TO COVER ACCIDENTAL
BENEFITS (SSGS).
50% FOR JANASHREE BIMA YOJANA.
KRISHI SHRAMIK SAMAJIK SURAKSHA YOJANA. 100% FOR SHIKSHA SAHAYOG YOJANA -
SCHOLARSHIP.
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Rural Group Life Insurance Scheme
(RGLIS)
THERE WAS ALSO THE RURAL GROUP
LIFE INSURANCE SCHEME (RGLIS),
LAUNCHED ON 15-8-1995
FOR RURAL POPULATION BELOW
POVERTY LINE.
AGE LIMIT 20 TO 50 yrs
BENEFITS : RS. 5000/- PAYABLE ON
DEATH BEFORE THE AGE OF 60.
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Rural Group Life Insurance
Scheme (RGLIS)
PREMIUM FOR AGE 20 TO 40 yrsRs. 60/-
PREMIUM FOR AGE 40 TO 50 yrsRs. 70/-
GENERAL AS WELL AS SUBSIDISED
THE SCHEME WAS ADMINISTERED THROUGHELECTED PANCHAYATS.
50 % SUBSIDY FROM STATE AND CENTRALGOVT. IN EQUAL PROPORTION (IN RESPECT
OF SUBSIDISED SCHEME) THIS SCHEME WAS WITHDRAWN W.E.F
01.04.2000
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JANASHREE BIMA YOJANA
LAUNCHED ON
10TH
AUGUST, 2000.
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ELIGIBILITY Rural as well as urban population.
Persons below poverty line and alsomarginally above the poverty line.
Between age 18 and 59 yrs.
Minimum group size 25.
42 occupations are identified so far.
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42 OCCUPATIONAL GROUPS
1 Beedi Workers 2 Brick Kiln Work
3 Carpenters 4 Cobblers
5 Fishermen 6 Hamals
7 Handicraft Artisans 8 Handloom Weavers9 Handloom & Khadi Weavers
10 Lady Tailors
11 Leather & Tannery Workers
12 Papad Workers attached to SEWA
13 Physically Handicapped Self EmployedPersons
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42 OCCUPATIONAL
GROUPS
14 Primary Milk Producers
15 Rickshaw Pullers / Auto Drivers
16 Safai Karmacharis
17 Salt Growers18 Tendu Leaf Collectors
19 Scheme for the Urban Poor
20 Forest Workers
21 Sericulture22 Toddy Tappers
23 Powerloom Workers
24 Hilly Area Women
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42 OCCUPATIONAL GROUPS
25 Food Stuffs like Khandsari / Sugar26 Textile
27 Manufacture of Wood Products
28 Manufacture of Paper Products29 Manufacture of Leather Products
30 Printing
31 Rubber & Coal Products
32 Chemical Products like candle manufacture
33 Mineral products like earthern toysmanufacture
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42 OCCUPATIONAL
GROUPS34 Agriculturists
35 Transport Drivers Association
36 Transport Karmacharis37 Rural Poor
38 Construction Workers
39 Fire Crackers Workers
40 Coconut Processors
41 Aanganwadi Teachers
42 Kotwal
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BENEFITS NATURAL DEATH:
- Rs.20000/- to the nominee
ACCIDENT BENEFITS:
- On Death: Rs.50000/- to the nominee
- Total Permanent Disability: Rs.50000/- to the
beneficiary.
- Partial Permanent Disability : Rs.25000/- to
the beneficiary.
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PREMIUM Rs. 200/- PER ANNUM OUT OF WHICH
- Rs. 100/- PAYABLE BY MEMBER /NODAL AGENCY.
- Rs. 100 FROM SOCIAL SECURITYFUND OF GOVT. OF INDIA.
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ADMINISTRATION OF SCHEME THE NODAL AGENCY ACTS FOR & ON
BEHALF OF INSURED MEMBERS IN ALL
MATTERS RELATED TO THE SCHEME.
NODAL AGENCY MEANS STATE GOVT. ,
GRAM PANCHAYAT, NGO, SELF HELP
GROUP OR ANY OTHERINSTITUTIONALISED ARRANGEMENT.
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SETTLEMENT OF CLAIM
LIC SETTLES THE CLAIM BYSENDING THE A/C PAYEE CHEQUE
FAVOURING THE BANKER OF THE
BENEFICIARY / NOMINEE.
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SHIKSHA SAHAYOG
YOJANALAUNCHED ON
31ST DECEMBER,2001
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BENEFITS CONTD.
Survival : lump sum at the end of every10th year till the member attains 60years of age.
Pension (provided the member has paidthe premium at least for a period of 10
years) payable at age 60 on the basisof the amount accumulated to the creditof the member and at least Rs. 100/-per month.
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ADMINISTRATION OF THE
SCHEME The scheme will be administeredthrough Nodal Agencies.
Nodal Agencies will be Gram
Panchayat. Nodal Agencies will identify the
agricultural workers & organize them in
groups of 20 or more. Member wise running account will bemaintained by LIC unit.
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SETTLEMENT OF CLAIM
Claim papers will be submitted to LICthrough the Nodal Agencies.
LIC will settle the claim by sendingAccount Payee cheque directly to thebeneficiary.
Sale of new Schemes discontinued fromDecember, 2003 but old Schemes can berenewed.
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THANK YOU