Journal Press India^®

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Microfinance phenomenon is one of the most remarkable socio-economic developments of our times. In this context, micro insurance is emerging as a prepaid financing option for the risks facing the poor. Earlier, insurance as a prepaid risk managing instrument was never considered as an option for the poor. Often they were considered uninsurable, given the wide variety of risks they face. To combat these risks, the poor used to do pro-active risk management such as grain storage, savings and asset accumulation. However, these forms of risk management which were appropriate earlier are no longer adequate. Micro-insurance should, therefore, provide greater economic and psychological security to the poor by reducing exposure to multiple risks and cushioning the impact of a disaster. In this reference, we look at the functioning of a private insurance company, ICICI Prudential Life Insurance Company in giving support to micro-insurance in Assam. ICICI Prudential has selected tea tribes of Assam as the target group to launch their Micro-insurance product.

Keywords

Micro-insurance, Poverty, Assam

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