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Microinsurance

NUBL is providing Microinsurence product that address clients' needs for risk management in addition to its savings and loan products. NUBL clients are highly vulnerable to economic shocks caused by events such as death of family member, illness, destruction of valuable asset, or a disabling injury. Nirdhan currently has three types of micro-insurance products:

Livestock Insurance

NUBL has linked up with a local agency (Deposit Insurance and Credit Guarantee Corporation) to provide this service. When clients take out a loan for livestock, they pay 3 percent of the value to the agency, and the government matches it with an additional 3 percent payment. If the animal dies and it is verified by a veterinary office, the agency pays the 80 percent of the loan. If the livestock is alive at the end of the loan, the client receives 20 percent of the premium as a refund.

Micro-life Insurance (Social security Fund)

NUBL provides micro-life insurance to its client, her husband, mother, father and in-laws. NUBL collects the premium annually from clients and deposits the amount in the social security fund created within the bank. The policy is for one year and can be continued with a subsequent premium payment.

NUBL has found that insurance and other new financial services can respond to a households' need to reduce their vulnerability, while concurrently improving its credit and savings portfolios.

Premium per year	Benefit
Rs. 70.00	Rs. 10,000.00
Rs. 140.00	Rs. 20,000.00
Rs. 280.00	Rs. 40,000.00

If the death of insured is due to accident the benefit is double of the above amount.