86 jeevan madhur micro insurance in south zone a birds eye view study

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SELP Journal of Social Science
Vol. VI, Issue. 26 ISSN : 0975-9999 (P), 2349-1655 (O)
October - December 201510
JEEVAN MADHUR MICRO INSURANCE IN SOUTH ZONE-
A BIRDS EYE VIEW STUDY
Dr. C. Paramasivan
Assistant Professor of Commerce
S. Rajaram
Ph.D Full Time Research Scholar
PG & Research Department of Commerce
Periyar E.V.R College (Autonomous)
Tiruchirappalli-620023
ABSTRACT
Micro Insurance is a special kind of insurance, which help to attract and meet the needs of the
unreached people with an affordable cost LIC introduced a micro insurance policy in the
name of Jeevan Madhur a simple savings related life insurance plan for low-income persons
was launched in 2006. On surviving to the date of maturity, sum assured is paid along with
vested bonus if any. On death of the policyholder, death benefit amount equal to the total
premiums payable during the entire term of the policy will be paid along with vested bonus if
any micro insurance products easily reach to rural poor people. This paper attempted to
discuss the performance of Jeevan Madhur micro insurance in south zone in India.
Key Words: Micro Insurance, Sum Assured, Policyholder, F.P.I, South zone.
Introduction
Insurance is one of the major financial
services, which help to mobilize the investments
from small pool of savings from vast segment
of the people. Indian insurance sector is one of
the growing and emerging sectors not only in
India but also in global level. It is a Micro
Insurance plan where the proponent may choose
the premiumamount, mode and term of the policy
and the death benefit is dependent upon the
premiums payable during the selected term
irrespective of age at entry but the amount
payable at maturity, called Maturity SumAssured
will vary for different ages and term. It is a simple
savings related life insurance plan where you may
pay premiums regularly at weekly, fortnightly,
monthly, quarterly, half-yearly or yearly intervals
over the term of the policy. Minimum installment
premium for different modes of premium
payment shall be Weekly Rs. 25,Fortnightly Rs.
50, Monthly Rs. 100, Quarterly/Half-yearly/
Yearly: Rs. 250, Further, the premium chosen
by you shall be subject to the minimum and
maximum sum assured of Rs. 5,000/- and Rs.
30,000/- respectively payable on death and
maturity under this plan. With this aspect, this
paper discusses the performance of Jeevan
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ISSN : 0975-9999 (P) 2349-1655 (O)
Research Impact Factor : 1.056
Vol. VI, Issue. 26

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Madhur micro insurance with request to south
zone.
Review of Literature
Aishwarya Nagpal and Jappanjyot
Kaurkalra (2015) have analyzed that India to
reach its condign place as developed nation it
must financially empower its entire population.
A primary element of this empowerment is base
risk cover that covers elements of life disability
and health; this empowerment can only be
attained through the collective efforts of the
government.
Amrutha.Vand Suresh B.H (2014) the
study concluded that the consumption and saving
patterns are also a critical aids to assess the
insurance needs. The issue of moral hazard and
adverse selection is a matter of concern for the
insurer. Spreading awareness among this
segment of insurable population and capacity
building of the delivery organization are major
challenges.
Geetha.D and Vijayalakshmi. S (2014)
the result of the study indicates that the usages
of metro life insurance is due to metro credits
sanctioned by micro finance intuitions. They
are playing a significant role in improving the
lives of finance makes better sense as it helps in
bringing down the cost of lending.
Paramasivan.C and Rajaram.S (2015)
Micro insurance is part of financial inclusion
which provides financial services to the poor and
the unreached people in the country. Micro
insurance consists of wide scope and it will reach
huge segment of the people. In India, micro
insurance are not much popular like the life and
general insurance because of the lack of
awareness among the people.
Narasimham G.A and Nagayya. D
(2011) has highlighted nation that the there is a
large potential market to micro health insurance
of rural poor. The demand is strong and is
indicating a potential market beyond lending
loans and savings micro insurance helps is risk
management of the poor intheir lives. The formal
linkages between insurance companies and
informal agencies likeMFIs and NGOs will bring
greater innovation in design and delivery of micro
insurance services and benefits the poor at large.
Akila prabhkar (2010) has concluded
that the nascent but growing industry of micro
insurance in India. It will delve into both the
risk and rewards of implementations insurance
on a micro level with in India, focusing a majority
of the attention to social barriers and ultimately
benefits that can be attained with its
implementation.
Charles waita Masila (2014) has
highlighted that micro insurance has become
popular because the poor face many risks that
they have no control over, and have a huge
impact on their lives. For instance, farmers are
highly susceptible to rainfall variances if the rain
falls too hard, too soon or too late an entire
harvest can be wiped out. The effects of
advancement in technology, competition and
subsidies on the growth of micro insurance in
Kenya. This is a strange phenomenon because
people were previously uninsurable because of
poverty and the high risk involved.
Jeevan Madhur Micro Insurance
Jeevan Madhur Micro Insurance products
launched September 28th
2006 by Life Insurance
Corporation of India. Peculiar products for
economically weekly rural people production this
scheme, which are uncertain life, health problem
and nature disaster also risk covered. People
could not unawareness of this product for rural
people. Jeevan Madhur Micro insurance product
only available in divisional office only so cannot
reach to rural area people because they are
illiteracy level was very poor and income is very
low. Micro Insurance policy holder is the policy
owner, which is a person in whose name an
insurance policy is registered. The insurance
policy is a contract generally a standard from

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contract between the insurer and the insured
know as policyholder, which determines the
claims, which the insurer is legally required to
Divisions 2009-10 2010-11 2011-12 2012-13 2013-14
Chennai-I 10221 10601 10889 10402 4657
Chennai-II 15711 15073 11365 2344 806
Coimbatore 9907 8999 7927 3485 1867
Ernakulam 25037 7853 5811 4720 2431
Kottayam 20601 18827 17714 2388 939
Kozhikode 52256 40283 10720 1069 1777
Madurai 4880 6666 2797 2957 438
Salem 30434 22241 10587 1265 134
Thanjavur 10450 8548 4061 847 140
Tirunelveli 7916 10964 10337 4834 294
Trissur - 13300 13574 3719 1058
Trivandrum 46923 55271 26550 2991 621
Vellore 9818 8517 9458 1181 70
Total 244154 227143 141790 42202 15232
Table No: 1 Jeevan Madhur policy holder in south zone
(No. of policyholder)
pay. Since Micro insurance products scenario
come down in the insurance market so create
awareness to rural people over come to the risk.
There are 13 divisions in south zone of
LIC. In the year 2009-10, there are 244154
policies under Jeevan Madhur Micro Insurance
of LIC, of which 10221 policies mobilized by
Chennai I division, followed by 15711 policies
by Chennai II division, 9907 policies by
Coimbatore division, 25037 policies by
Ernakulamdivision, 20601 policies by Kottayam
division, 52256 policies by Kozhikode division,
4880 policies byMadurai division, 30434 policies
by Salem division, 10450 policies by Thanjavur
division, 7916 policies by Tirunelveli
division,46923 policies by Trivandrum division,
9818 policies by Vellore division.
As table show that 2013-14, there are
15232 policies under Jeevan Madhur Micro
Insurance of LIC, of which 4657 policies
mobilized by Chennai I division, 806 policies by
Chennai II division, 1867 policies by Coimbatore
division, 2431 policies by Eranakulam division,
939 policies by Kottayamdivision, 1777 policies
Source: lic of India Chennai
by Kozhikode division, 438 policies by Madurai
division, 134 policies by Salem division, 140
policies by Thanjavur division, 294 policies by
Tirunelveli division, 1058 policies by Trissur
division, 621 policies by Trivandrum division
finally 70 policies by Vellore division.
As on whole, number of policyholder
of Jeevan Madhur Micro Insurance has been
reducing from 244154 in 2009-10 to 15232 in
2013-14. It shows a deep reducing of Jeevan
Madhur Micro Insurance Policy holders.
Sum Assured
Sum assured is the minimum amount
payable by the insurance company in case of
death of the policyholder. The actual coverage,
which determines the amount of premium
payable by the policyholder. Guaranteed return
on the other hand, in the minimum amount that
the insured person receives when he or she
outlives the life insurance policies tenure.

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Table No: 2 Jeevan Madhur policy holder sum assured in south zone
(Sum Rs.000’s)
Divisions 2009-10 2010-11 2011-12 2012-13 2013-14
Chennai-I 85168.20 88012.88 87417.05 87437.35 33754.15
Chennai-II 196646.80 162585.10 111777.2 33064.8 10399.3
Coimbatore 150075.74 119243.88 96031.78 49797.12 25427.08
Ernakulam 449088.00 155224.62 114268 85807.27 46227.64
Kottayam 298726.45 253837.00 204424.976 38926.28 18158.46
Kozhikode 992656.56 733991.60 199669 22790 38455
Madurai 47959.24 54482.00 27019.43 47242 7062.63
Salem 224130.62 171976.04 99699.38 19776.4 1968.6
Thanjavur 99011.29 97646.12 42080.98 12138.04 1676
Tirunelveli 102095.38 147126.30 114987.88 71751.2 4107.94
Trissur - 224539.00 191260.2 68987.126 20997.19
Trivandrum 788908.21 973215.67 460512 58810.49 12447.58
Vellore 101590.83 131692.93 166836.5 19759.62 1260.3
Total 3536057.32 3313573.14 1915984.38 616287.70 221941.87
Source: lic of India Chennai
In the year 2009-10, Rs.3536057.32
thousands sum assured under Jeevan Madhur
Micro Insurance Scheme of LIC, of which
Rs.85168.20 thousands belongs to Chennai I
division, Rs. 196646.80 thousands belongs to
Chennai II division, Rs.150075.74 thousands
belongs to Coimbatore division, Rs. 449088.00
thousand belongs to Erankulam division,
Rs.298726.45 thousand belongs to Kottayam
division, Rs.992656.56 thousands belongs to
Kozhikode division, Rs. 47959.24 thousands
belongs to Madurai division, Rs. 224130.62
thousands belongs to Salem division, Rs.
99011.29 thousand belongs toThanjavur division,
Rs.102095.38 thousand belong to Tirunelveli
division, Rs.788908.21 thousand belongs to
Trivandrum division and Rs. 101590.83
thousand belongs to Vellore division.
As table shows that 2013-14, Rs.
221941.87 thousand belongs to sum assured
Jeevan madhur Micro Insurance scheme of LIC,
of which are Rs.33754.15 thousands belongs to
Chennai I division, Rs. 10399.3 thousand belongs
to Chennai II division, Rs. 25427.08 thousand
belongs to Coimbatore division, Rs.46227.64
thousand belongs to Erankulam division,
Rs.18158.46 thousand belongs to Kottayam
division, Rs.38455 thousand belongs toKozhikode
division, Rs.7062.63 thousand belongs toMadurai
division, Rs. 1968.6 thousands belongs to Salem
division, Rs.1676 thousands belongs to Thanjavur
division, Rs.4107.94 thousands belongs to
Tirunelveli division, Rs. 20997.19 thousand
belongs to Trissur division, Rs. 12447.58
thousands belongs to Trivandrum division,
Rs.1260.3 thousand belongs to Vellore division.
On the whole, sum assured in Jeevan
Madhur Micro Insurance has been come down
from Rs.3536057.32 thousands in 2009-10 to
Rs.221941.87 thousands in 2013-14. It shows
Jeevan Madhur Micro Insurance sum assured
has been gradually reducing due to reducing of
member of policies.
First Premium Income
An insurance company’s premium
income is revenue that is derived from premiums
paid by customers. Premiums are paid for all
types of insurance policies including health, crop,
cattle insurance, live stock insurance, and life
insurance. A premium is the cost paid for
coverage under the policy for a certain period
of time.

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Table No: 3 Jeevan Madhur policy hoder first premium income in south zone
(Amt. in Rs.)
Divisions 2009-10 2010-11 2011-12 2012-13 2013-14
Chennai-I 9736600 10597693 11288100 11857730 5393850
Chennai-II 2642900 4163100 3213100 764256 435450
Coimbatore 1182765 1271555 915492 417773 267540
Ernakulam 4184220 1335311 923274 675484 359480
Kottayam 3997196 3011325 2298074 328740 137711
Kozhikode 7008294 6173660 1906588 254585 2533229
Madurai 902409 1192775 479560 661567 161461
Salem 4676905 3239590 3543450 674285 35250
Thanjavur 2074850 2127640 1434700 325400 112163
Tirunelveli 1088036 1206775 1156721 538126 53368
Trissur - 1812680 1875800 502262 152238
Trivandrum 6469715 8129325 3962533 475318 96361
Vellore 1582979 1084542 1412632 228450 8135
Total 45546869 45345971 34410024 17703976 9746236
Source: LIC of India Chennai
In the year 2009-10, Rs.45546869
mobilised as premium for Jeevan madhur Micro
Insurance policies from south zone, of which
Chennai I division mobilished Rs.9736600,
Chennai II division mobilished Rs.2642900,
Coimbatore division mobilished Rs. 1182765,
Erankulam division mobilished Rs.4184220,
Kottayam division mobilished Rs.3997196,
Kozhikode division mobilished Rs.7008294,
Madurai division mobilished Rs.9024409, Salem
division mobilished Rs.4676905, Thanjavur
division mobilished Rs.2074850, Tirunelveli
division mobilished Rs.1088036, Tirvanduram
division mobilized Rs.6469715, Vellore division
mobilished Rs.1582979.
As evident that 2013-14, Rs.9746236
mobilised as premium for Jeevan Madhur Micro
Insurance policies from south zone, of which
Chennai I division mobilised Rs. 5393850,
Chennai II division mobilised Rs.435450,
Coimbatore division mobilised Rs.267540,
Eranakulam division mobilised Rs.359480,
Kottayam division mobilised Rs.137711,
Kozhikode division mobilised Rs.2533229,
Madurai division mobilised Rs. 161461, Salem
division mobilised Rs. 35250, Thanjavur division
mobilised Rs. 112163, Tirunelveli division
mobilised Rs. 53368, Trissur division mobilised
Rs.152238, Tiruvanduram division mobilised
Rs.96361 andVellore division mobilized Rs.8135.
As on the whole, First premium Income
in Jeevan Madhur Micro Insurance has been
come down from Rs.45546869 amount in 2009-
10 to Rs.9746236 amount in 2013-14. Its
Indicate that Jeevan Madhur Micro Insurance
First premium Income has been reduced the
mobilized of premium amount of LIC south
zone.
Findings and Conclusion
Insurance is one of the risk anticipated
schemes which is associated with assured return
and risk coverage. In India, insurance sector
plays a key role in the financial system of the
country, which contributes flow of money from
the people to industrial sectors. Indian insurance

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sectors are one of the unique in character, well
organized, and regulated by the IRDA. Before
1991, LIC had a monopoly status in the insurance
sector and dominated in Indian financial system.
But due to the emerge of private and foreign LIC
in India there has been a shift computation among
the Insurance Companies and LIC of India retain
its status as number one company in Insurance
in India. Micro insurance is one of the innovative
products of the Insurance Company, which has
been introduced to attract the unreached and poor
people of the society. Low premium is one of
the special features of the micro insurance, which
can be early reached the poor. However, there
insurance is not get covered the needed people
and it has not significantly contributed to the
socio-economic development of the people.
With the effect of introduction of
commercial banks, linked schemes of the
insurance companies lost its business
performance. Majority of the private sector LIC
withdrawn its micro insurance schemes and LIC
of India is also not concentrating much about
these schemes. Jeevan Madhur Micro Insurance
of LIC of India, not yet reached to unreached or
needy people due to lack of awareness. Hence,
there is a need to create the awareness about the
Jeevan Madhur Micro Insurance and the LIC
agents take part of popularize the Jeevan Madhur
Micro Insurance.
References
Aishwarya Nagpal and Jappanjyot Kaur (2015)
“The road so far to Micro insurance: The
financial revolution in the services for the poor”
International Journal of Information technology
and management Vol.8. pp.1-8
Amrutha varshini.V and Suresh. B.H(2014) “Micro
insurance: emerging financial instrument in the
Indian Insurance Sector”, Indian Journal
Applied Research, Vol.4. pp.2-3
Akila Prabhakar (2010) “Micro insurance: The risk
rewards Spectrum in India” The Bachelor of
Scienceundergraduate college, LeonardN. Stern
School of Business, NewYork University, pp.1-
55
Charles Waita Masila (2014) “The Relationship
between advancement in technology,
competition subsidies and the growth of micro
insurance in Kenya” Master of Business
Admistration degrees university of Nairobi.,
pp.1-64.
Geetha.D and Vijayalakshmi.S (2014) “A studyon
the Behavior of Micro life insurance policy
holders” with reference to Coimbatore, India,
Research Journal of Recent Science, Vol.3.,
pp.87-93
Paramasivan.C and Rajaram.S (2015)“An overview
of Micro insurance Industries in India”
International Journal of Multidisciplinary
Educational Research Vol.4., pp.115-129
Narasimham G.R and NagayyaA.D (2011) “Access
to Micro Health Insurance service for the rural
poor:An Exploratorystudyin Andhra Pradesh”
International Journal of research in commerce,
Economic and Management Vol.1., pp.97-106.
Website
www.lic.co.in
www.googlescholar.com
www.irda.com
www.indian insurance.org.in
All in-text references underlined in blue are linked to publications on ResearchGate, letting you access and read them immediately.

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86 jeevan madhur micro insurance in south zone a birds eye view study