Discussed on benefits of insurance with community of Uvs and Khuvsgul aimagsOct 4, 2013
The Ministry of Population Development and Social Protection and the Social Insurance General Office held a series of workshops titled “Insurance in our life” in Murun, Tarialan, Ikh-Uul, Tosontsengel and Tsagaan-Uul soums of Khuvsgul aimag and Ulaangom, Zuungobi, Malchin and Tarialan soums of Uvs aimag between 16 and 28 September 2013 with the support of “Capacity Development for the Micro-insurance Market” Project being implemented by the Financial Regulatory Commission and United Nations Development Programme (UNDP). Purpose of the workshops was to make entrepreneurs, herders and unemployed people aware of the role of social insurance, health insurance and micro-insurance in social protection and provide methodological advice on implementation of the law on social insurance to the employees of Social Insurance Offices in Khuvsgul and Uvs aimags and soum’s inspectors.
Raising public awareness of the importance of insurance is essential
Involvement and activity of people who participated in the workshops have shown clearly that raising public awareness of social and health insurance and their importance through such workshops directly oriented to public was an expedient and worthwhile activity which raised a vital issue. Number of participants of the workshops held in soums was ranging from 100 to 300. Although approximately 200 people participated in a workshop held in Tarialan soum, Khuvsgul aimag on 17 September 2013, more than 800 people will be informed if every person spreads the news to no less than 4 to 5 people.
D.Erdenebat, Head of Training, Advertising and Public Relations Department of the Social Insurance General Office, said that “Participants who were standing in a long queue to ask questions have shown that the activity of people was good. The series of workshops lasted longer than planned and the participants asked our specialists for advice in person because there were much more questions left beyond the time planned for questions and answers. This shows that there is a need for getting information on social and health insurance”.
“The workshop was very necessary for those who are uninsured, especially for young people. I’ll instill the importance of social insurance in my children. Since people do not have knowledge in insurance, you need to raise awareness of those who trade in black markets and are unemployed and help them be insured.” said, D.Dambiijav, one of the participants, who is a citizen of 6th bagh, Ulaangom soum, Uvs aimag.
People begin to be insured voluntarily
It is certain that a large number of people will be insured voluntarily if they are well-aware of the importance of insurance. As an evidence, 5 people asked social insurance inspectors to execute voluntary insurance contracts after a workshop held in Tarialan soum, Khuvsgul aimag.
R.Lkhagvasuren, a citizen of 12th bagh, Murun soum, Khuvsgul aimag, is a pensioner who is enjoying the benefits of his pension insurance. “I used to be unconscious of the importance of social insurance and think that monies are just deducted from my salary. But now I understand the importance of social insurance very well once I’ve been receiving the benefits of my social insurance premium paid at that time. I wish all entrepreneurs and uninsured people to be insured voluntarily.” he said.
Low and middle-income people, entrepreneurs, herders and unemployed people cannot afford social and other insurance services today. There are more than 500.000 uninsured people throughout the country including entrepreneurs, herders and the unemployed. Approximately 60 – 70% of 30.000 herders and more than 50% of entrepreneurs and low to middle-income / poor people are totally out of the insurance coverage in Khuvsgul aimag.
What is micro-insurance?
During the series of workshops, citizens have been made aware of the importance of not only social insurance and health insurance, but also general insurance including property insurance. The main goal of the “Capacity Development for the Micro-Insurance Market” Project is to develop micro-insurance products covering daily risks of low-income people and women as well as to deliver the products to the target group.
The main product of the “Capacity Development for the Micro-insurance Market” Project is ger, fence and house (dwelling) insurance which would cover potential natural disaster, fire and electric risks. Specific features of this insurance product for low-income people will include (i) having lower premium rate and policy that would not keep the insured under financial pressure; (ii) to indemnify the insured in a short period of time; and (iii) to require a few claim documents to request for indemnification.
To develop an infrastructure / a system to sale property micro-insurance products which are going to be launched within the scope of the “Capacity Development for the Micro-insurance Market” Project, Information Centers are planned to be established and operated in the project locations including Khuvsgul, Uvs, Selenge and Dornod aimags as well as Nalaikh and Khan-Uul districts of Ulaanbaatar.
The series of workshops has shown that the expected outcomes of the project such as raising public awareness of micro-insurance, offering this kind of insurance to people and protecting their properties – their living sources from risks can be fully achieved.