ABOUT MIME

INAFI Bangladesh, in collaboration with Stromme Foundation, is implementing a pilot social security project MIME supported by Oxfam-Novib and Rabobank Foundation. The project is being implemented based on mutuality concept with active participation of 11 NGOs with an objective of pooling the risk of vulnerability of the poor people whether it is death, disability or natural disaster. The key point of the mutuality of MIME is that policy owners will become the owners of MIME and profits made by MIME will be distributed annually among its clients as bonus. During the pilot period MIME will provide microinsurance products and services to the poor and ultra-poor at affordable price.

Vision

Poor people of Bangladesh will have social security through mutually beneficial insurance products.

Mission

• To sensitising NGOs/MFIs and mainstreaming insurance companies to the concept of mutuality and MIME for the welfare of the poor in Bangladesh.
• To make MIME a sustainable and autonomous entity within 4 years
• To reduce vulnerability of the poor people.
• To provide additional services that Mainstream insurance companies and NGOs/MFIs are not offering.
• To Piloting Microinsurance Mutual Entity (MIME) project to disseminate outcomes locally, and globally, and outline future structure of the MIME and develop sustainable Micro insurance Mutual entities in Bangladesh.

Products

Since its inception MIME has been offering two life insurance products with very distinct features as:

Simple Term Life Insurance (STLI)

• Women from micro credit group members are eligible to apply.
• Maturity of policy is 60 years
• Premium payment at the rate of Taka 5, 10, 15, and 20 per month
• 5% bonus on premium after every 5 years on actual premium collected in 5 years.

Risk coverage

In the event of death, the insured amount will be paid to the nominee who is normally a family member. A partial amount will be paid to meet funeral expenses.

Term Life Insurance with Endowment (TLIE)

• Women from micro credit group members are eligible to apply.
• Maturity will be 5 years, 7 years, 10 years and 12 years
• Premium payment at the rate of Taka 50, 100, 150, 200, 300 and 500 per month

Risk coverage

At maturity, the policy owners will get the insured amount at the end of chosen term along with accumulated yearly bonus. In the event of death, the insured amount will be paid to the nominee who is normally a family member. A partial amount will be paid to meet funeral expenses.

STRENGTHS

• Affordable premium rate based on age, insured amount, maturity time has attracted the clients
• Sharing of profit as bonus is seen as a strong positive incentive for the clients.
• Wider network of MFIs/ NGOs are being used as MIME network.
• Existing trust of the clients on NGOs will give courage to buy the policy initially.
• MIME insurance education program to target clients and local level leaders motivate potential clients.
• Structured and simple underwriting process.
• Easy and only one premium collection process.
• Strong monitoring by the members of MIME team.
• Generation of monthly and yearly reports.
• Strong internal control and monitoring mechanism
• Premium amount is invested in time deposit as practiced in insurance industry.
• Less adverse selection due to regular visit of NGO staffs.
• Lower moral hazard because of long time relationship between client and NGO.

MIME at a Glance

Project duration : 4 years (pilot)
Lead agency : INAFI Bangladesh
Working Area: 14 districts including Bagerhat, Pirojpur, Sunamgonj, Moulavibazar, Kishoreganj, Naogaon, Pabna, Tangail, Gaibandha, Dhaka, Gazipur, Comilla, Chandpur, Chittagong.
Number of branches : 72
Number of Clients : 35,374
Amount of Premium Collection: BDT 16.79 million
Training provided : 501 NGO staffs and 18,568 potential clients
Partner organisations : 11 NGOs including – 1) BURO Bangladesh, 2) Shakti Foundation for Disadvantaged Women (SFDW), 3) Community Development Centre (CODEC), 4) Voluntary Association for Rural Development (VARD), 5) ASHRAI, 6) Gana Unnayan Kendra (GUK), 7) Pally Bikash Kendra (PBK), 8) Bangladesh Association for Social Advancement (BASA), 9) Anannyo Samaj Kallyan Sangostha (ASKS), 10) Society for Social Services (SSS), and 11) United Development Initiatives for Programmed Actions (UDDIPAN)