ROLE OF MICRO HEALTH INSURANCE (CASE OF JUBILEE INSURANCE)

Zeeshan Iqbal

MARCH 20, 2014

Supervisor: Sir Qazi A. Subhan

INTRODUCTION
Microfinance has shown great impact on the society welfare and the schemes are contributing to minimize the poverty and improve the living standard. Micro finance attempts to improve access to small deposits and small loans for poor households neglected by banks (Schreiner and Colombet, 2001). Alexander Preker et al (2002) advances that micro insurance is regarded as the product of the micro finance which is synonymous to community-based financing arrangements, including community health funds, mutual health organizations, rural health insurance, revolving drugs funds, and community involvement in user-fee management. Bill & Melinda Gates Foundation launched the Microfinance and Health Protection (MAHP), an initiative aims to develop and test integrated microfinance and health protection products and services that positively impact clients lives while being practical and sustainable for microfinance institution. Microfinance is an effective tool in the battle against poverty and hunger. At the same time the positive effects of microfinance might be undermined when a customer or relative falls sick, bringing about late installments or even default. This is particularly correct in extremely poor, country groups, where individuals are exposed to additional health dangers and have few alternatives for medical services. These groups are the ones Freedom from Hunger is dead set to achieve and present with worth included microfinance (Leatherman, Sheila, et al, 2013). Freedom from Hunger 1is a recognized expert in integrated financial and non-financial services for the poor and involved in the activities of health education, health financing and micro insurance, linkage to health providers and access to health products. It initially collaborated with five Micro Finance Institutions (MFI) in Asia, Africa and Latin America to conduct market research on the possible products and services to be offered. (Mawuko-Yevugah and Yvonne, 2013) Micro health insurance (MHI) can be defined as an arrangement that offers financial protection to individuals and groups with a low-income against specific risks in exchange for premium payments (Allen & Overy LLP, 2012). Moreover risk pooling instruments as health
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For more information: www.freedomfromhunger.org/resources/microfinancehealth

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insurance can fulfill two functions: mitigating the financial impact of a disease and creating better access to medical care of high quality which contributes to the productivity, income and well-being of people (Jtting 2004) MHI schemes are introduced to reduce the vulnerability of health shocks associated with daily life activities and provides a better framework through which poor people can get protection in case of severe diseases. In Pakistan, the initiative of micro health insurance schemes were taken by the Naya Jeevan by providing various facilities to poor people with ease of access as government is unable to provide health care needs to these people. These MHI schemes may contribute to dropping poverty through advances in health as well as reducing the health risks of the insured so that they would work and progress without any fear. A number of health insurance providers such as Naya Jeevan in Pakistan has started experiment by providing value added services through MHI schemes to enhance the appeal of traditional schemes. John Pott and Jeanna Holtz (2013) advances that at various points demand for such services disappoints the practitioners as market potential and awareness of such schemes are very low among poor people so targeting of such schemes needed to be addressed. People of Pakistan are merely aware of MHI schemes and those who are aware find it less attractive to be acquired.

BIBLIOGRAPHY
Schreiner and Hctor Horacio Colombet. (2001) "From urban to rural: Lessons for microfinance from Argentina." Development policy review 19.3: 339-354. Alexander S. Preker, Guy Carrin, David Dror, Melitta Jakab, William Hsiao, Dyna ArhinTenkorang (2002). "Effectiveness of community health financing in meeting the cost of illness". Bulletin of the World Health Organisation (Geneva: WHO) 80 (2): 143150. Leatherman, Sheila, et al. (2013) "Health Financing: A New Role for Microfinance Institutions?" Journal of International Development 25.7: 881-896. Mawuko-Yevugah, Yvonne (2013).Banking the un-bankable: an empirical study of risk and risk management by micro-financial institutions in Ghana. Allen & Overy LLP (2012). "Micro insurance". Advocates for International Development. Retrieved 20 August 2013. Jutting, Johannes P., (2004). "Do Community-based Health Insurance Schemes Improve Poor People's Access to Health Care? Evidence from Rural Senegal," World Development, Elsevier, vol. 32(2)

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John Pott and Jeanna Holtz. (2013) microinsurance."Microinsurance Paper 19 "Value-added services in health