Team Name: The Three Musketeers

Institute: Indian Institute of Management, Kozhikode

IIMK Campus P. O., Kozhikode, Kerala, India, PIN - 673 570
ABHISHEK LAHIRI
PGP/14/062
+919048174853
Abhishekl14@iimk.ac.in
Coverage needed by a rural person for:
Damage or uncertainty to crop
Life Insurance
Health Insurance
Cattle Insurance
Insurance against regular income
Accident Insurance
Calamity insurance Floods, draught, etc.
The New proposed product is a bundling of all of the above
Coverage
Access to diversified products and services
Infrastructure
Financial management support
Delivery model
Language Barriers
Financial illiteracy
Policy requirements
90% of employment in India is in un-organized sector
Transaction costs for small loans and deposits, using technology


OPERATIONS
PRIMARY CHANNELS

Account Opening
Document Collection
Educating People
Public Relations as a representative
INSURANCE CORRESPONDENT
Tie ups to exploit the vast distribution
network
Exploit the goodwill and already
established practice of forming and
assistance
Help increase spread, reach and
penetration
FMCG DISTRIBUTORS/ SELF HELP GROUPS
SHGs formalize the procedure for taking plans and
help increase the penetration of insurance products
in poorly connected areas

Self Help Groups and bank linkages facilitated the
increase in sales of insurance products by
approximately 2 times over the previous year
(consistently over the last five years)
A local correspondent appointed by the
Bank
Slowly take over the role of the
Insurance Correspondent
Facilitate the operations of an
extension counter in the long run
Help extend the reach and penetration
of the products and services
VILLAGE CORRESPONDENT
SECONDARY CHANNELS

Features of the programme:
Education and training of the staff and village
occupants by the machine developer
Provision for 9 hours battery backup and
continuous charge through solar panels
Setup Kiosks supported by computerized
machines (Vortex Gramateller Duo with
BiometricScanner and Voice Feedback in local
language)

Provision for:
1. Premium payment
2. Remittance
3. Enquiry (FAQs)
4. Sending micro-insurance applications/queries
BIOMETRIC IDENTIFICATION
Mobile services have greater penetration progressing at a faster
pace than the required rate of growth of banked penetration
This technological edge can be leveraged successfully
The same has been successfully implemented in many countries
as a tool to implement Financial Inclusion projects like WIZZIT
Banking in South Africa, MPESA in Kenya and other instances
in South East Asia
Money transfer, premium payment reminders
or request for additional services
Query addressal via customer care and
application for supplementary financial
services and products
MOBILE ACCESS
Activities can be carried out through
Customer-Care Call Centers through
security pins
This service would be available in local
language so as to reach more number of
people
This would help increase the penetration
amongst the non-included, especially those
who are illiterate
TOLL FREE NUMBERS
Strategic tie-ups with institutions like India
Post etc. as a cash dispensing partner
It can be used as a gateway for as minimal
transactions as Cash Withdrawal/ Cash
Deposits
CASH DISPENSING PARTNER
LOANS/
MICROFINANCE
SCHEMES Tie-
ups with Self Help
Groups
FIXED
DEPOSITS
Bank Tie-ups
NREGA
SAVINGS
ACCOUNT
Bank Tie-ups
A/C TRANSFERS
REMMITANCES
PAYMENTS
RECIEPTS
UTILITY BILL
PAYMENT
Bundling of products with Utility bills like Electricity, Telephone, etc.
Tie-ups with FMCG retailers and dealers for sale and penetration insurance
products
Provision of knowledge and assistance on crops and farming along with
products
Educating the rural inhabitants through:
Organizing Special Sessions at frequent intervals of time
Through the Panchayat
Broadcasting benefits on Television and radio
Create Opinion leaders to help in penetration of the product
No. of
Tehsils/
Talukas
Population Population Division (Per cent in
2001)
1991 2001 Rural Urban
14 5,532,532 7,224,224 3,026,950 41.9 4240619 58.7
353 78,937,187 96,752,247 55,729,294 57.6 41022952 42.4
Taluka Name No. of
Villages
(sq. Km)
Headquarter
Pune City 184 Pune
Khed 1,400 Rajgurunagar
Ambegaon 1,043 Ambegaon
Junnar 1,385 Junnar
Shirur 1,557 Shirur
Daund 1,290 Daund
Indapur 1,468 Indapur
Baramati 1,337 Baramati
Purandhar 1,104 Sasvad
Haveli 1,337 Pune
Bhor 892 Bhor
Velhe 497 Velhe
Mulshi 1,039 Paud
Maval 1,131 Wadgaon
Total 15,642
Total Villages
(Population>2000)
424
Total Unnbanked
Villages
(Population>2000)
280
Choice of Pune district for pilot 280
unbanked villages with population of
over 2000
Proximity to PBoIs regional office in
Nashik added advantage
City of Pune would provide ideal
location for supervising roll-out and
performance
Low-cost Kiosks installed for cluster of 10 villages
1 ATM for approximately 25000 people
5 insurance officers in charge of 50 villages
Each officer will visit 2 villages per day to carry out banking
transactions
Mobile services and facilities will be activated on customer
request
Tie-ups with India Post and Kirana stores will act as
distribution nodes for application forms and dissemination of
information
ITEM UNIT COST NUMBER TOTAL
SMART CARD AND HARDWARE COST
Customized Computerized kiosks 175000 5 875000
Smart Card 60 20000 1200000
Hand Held Device for transactions having (POS):
Card Reader
Biometric or finger print device
Connectivity
Printer For Muster Roll data collection from Job site
75000 5 375000
Hand Held Device with Mobile handset for connectivity 5000 5 25000
Laptop 30000 5 150000
CONSUMABLES AND MAINTAINANCE
Printer Cartridge, Connectivity charges, Stationary. 5000 5000
IT
IT Infrastructure 500000 500000
TRAINING
Training including preparation of training material 5000 5 25000
ADDITIONAL COST
Commission @ 2% of deposits 56000
Salary 6000 5 30000
TOTAL COST
Rupees thirty two lakh forty one thousand 3241000
Strategies to manage risks
Following mechanisms may be used to manage social risks:
Informal individual mechanisms and self -help groups
Informal and semi-formal cooperative systems
Formal private systems
State social security schemes
The Three Musketeers
Indian Institute of Management, Kozhikode

ABHISHEK LAHIRI
PGP/14/062
+919048174853
Abhishekl14@iimk.ac.in