Role of Non-Insured Services to Increase Micro-Health Insurance Uptake :- A Perspective From Pakistan

Background:-

Naya Jeevan is a Karachi based micro-health insurance initiative targeted towards the socio-economically disadvantaged urban residents of Pakistan earning less than 20,000 Rs/month (~228 dollars). At the end of 2009, its first year on ground, Naya Jeevan’s first client refused to re-enroll. An exit survey revealed that the client felt that the beneficiaries did not know how to use the card, had an intrinsic fear of claim refusal and out of pocket payment at the hospital, and did not have a single hospitalization event. Therefore, Naya Jeevan formed a Member Services Department that was tasked with enhancing the value of the micro-insurance product both for the client and the end beneficiary. The department came up with four important services a) Helpline manned by a medical doctor 24/7 for health and claims advice b) Mandatory training session using animated power-points within the first month of card issuance conducted by medical doctors c) A head to toe medical check-up at the client’s premise within six months of card delivery d) Help with the claims process

Results:-

Naya Jeevan had a total of 48 clients with an aggregate of 2479 lives at the end of 2010. Eighty two percent (2080) of these lives were the members themselves, while the rest were spouses and children.38 clients totaling 1285 lives were trained on the use of health cards by the team. 1063 individuals participated in a head to toe examination. 760 calls were received on the helpline. Sixty seven claims were processed during the year amounting to Rs. 1,145,019 (~13,012 USD)with a claim-loss ratio of 47.5 %. 42 clients re-enrolled (87.5%). The re-enrollment rate in lives was 78.54 % (1947/2479).  

Conclusion:-

Non-insured value added services can increase micro-insurance service uptake especially in the early formative years.