NON GOVERNMENT ORGANIZATIONS (NGO’S) AND THE PERFORMANCE OF LIC’S MICRO INSURANCE

Abstract

Micro insurance policies are special type of policies created by Insurance Regulatory and Development Authority (IRDA) in India to promote insurance coverage among economically vulnerable sections of society. Life Insurance Corporation (LIC) of India is the biggest micro insurance provider in the country. In this research study the performance of NGOs in distributing LIC Micro Insurance (MI) policies are analyzed. The data was collected from 20 NGOs of Coimbatore district of Tamil Nadu, India. NGOs experience in MI business, Source of awareness, Area of operation and particulars regarding performance were collected. This study also focuses on the details about the existing, discontinued and surrendered policies and various problems faced by NGOs in distributing MI policies.

The data was collected through personal interview using questionnaire. The analysis was made using simple percentages and Kendall co-efficient of concordance. The study suggested that MI policies are distributed with the motive of safeguarding against the micro loans of NGOs clients. But this motive has to be replaced with the welfare of their clients, i.e. LIC MI policy holders.