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Evolving Climatic Adaptation through Crop Insurance

About the Project
Project start date: 
Jul 2009
3 years
Country of Operation: 
Region of operations: 
Asia and the Pacific
Agriculture and livestock - index crop
Project Thematic Focus: 
Product design

This Learning Journey was created with contributions from:
S.Balasubramanian (DHAN) and Pranav Prashad (the Facility)

Project Basics

The Development of Humane Action (DHAN) Foundation, a professional development organization, was established on the 2nd October 1997 with a mission to build people and institutions for development innovations and their scale-up, in order to enable poor communities to reduce poverty and be self-reliant.

People Mutuals is the insurance initiative of DHAN Foundation. Its primary purpose is to provide insurance services to address the risks and vulnerabilities of the poor. The initiative is collaboration between DHAN Foundation, Oxfam Novib, Rabobank Foundation, and EurekoAchmea Foundation. DHAN Foundation provides professional staff to manage the activities and provides strategic guidance and support.

The project is developing various mutual crop insurance products as adaptation measures to climate change issues faced by small farmers. The project is being delivered across eight districts in two states of India involving 15 blocks. The product is designed and implemented by a mutual insurance committee (MIC), which consists of older and wiser farmers from each covered village. The MIC decides on the risks to be insured and the level of retention of risk by the insured farmers. Given that issues emerging from climate change are highly localized, the MIC of each location can decide on which risks they would like to address through insurance and which they could address by themselves or through other means. The community itself will decide on the method of claim payment.

People Mutuals has developed innovative mutual insurance products for life insurance, comprehensive health insurance and income indemnification crop insurance. They have defined the member administration, policy administration, financial administration and claim administration systems, and developed in-house software for microinsurance.

Date of last Learning Journey update: April 2013