Social Insurance in India: Achievements and Hindrances
Developing country like India, the rural population are more vulnerable than the rest of the population in coping with broad range of risks and crises that affect its livelihood. Over the years, state supported Social Insurance programmes and the Microfinance intervention both by the public and private sector has tremendously changed the scenario of rural India. The study aim to identify the role of Microfinance in mitigating risks of rural poor; strategies and means of people’s response/ coping mechanism to such crises and risks; the demand and supply scenario of Microinsurance in rural setting; and the operational mechanism and claim behaviour at consumer level. The research identified a broad range of risks and coping stretegies which are faced by the rural communities. The study suggested that there is a high demand for the community based Microcredit and Microinsurance interventions among the poor which led them better manage risk both ex-ante and ex-post. The study also suggested that the partnership model of community Microinsurance e.g. Micro Finance Institutes and Insurance companies can play a vital role to mitigate the risks of rural poor in India.