IFMR Rural Finance has been appointed as one of the first Interested Non-Governmental Agencies (INGA) by the Ministry of Labour and Employment, Government of India, to participate in its Rashtriya Swastya Bima Yojana (RSBY).
The RSBY is a Government of India flagship initiative to provide insurance coverage for Below Poverty Line (BPL) families. Hospitalisation coverage up to Rs. 30,000 (arising out of health shocks) is provided under RSBY. The RSBY has already enrolled close to 23.5 million households in the BPL category.
As a result of this appointment, customers of Kshetriya Gramin Financial Services (KGFS) can now avail health insurance under the RSBY. More than 170,000 rural households in Tamil Nadu, Orissa, and Uttarakhand that are already being serviced by IFMR Rural Finance can now benefit from the scheme.
“Health shocks are a major threat to the income earning capacity of households and lack of access to affordable and quality health care systems in rural areas make these households even more vulnerable. Health insurance, which provides a safety net by protecting the human capital, plays an important role in ensuring the financial well-being of these rural households. Partnering with RSBY will help us offer this much needed product to our customers, who will also be able to benefit from the scheme’s technology driven platform to access an extensive network of quality health care services”, said SG Anil Kumar, CEO, IFMR Rural Finance
Under this arrangement, it is envisaged that the KGFS will be responsible for customer identification, creating awareness about the benefits and premium collection, while the insurers and RSBY will be responsible for managing the hospital network and administering of the insurance programme. The product portfolio of KGFS includes investment, credit, remittance and insurance products.IFMR Rural Finance is already an aggregator for PFRDA’s NPS-Lite. At present, customers can avail Personal Accident, Life, Livestock and Shopkeepers insurance through KGFS. The latest development offers the much needed protection against health shocks for remote rural households.