CGAP Working Group on Microinsurance Good and Bad Practices: TYM’s Mutual Assistance Fund Vietnam, Case Study No. 3
The TYM Fund or Compassionate Fund (TYM stands for Tao Yeu May which literally translates to “I love you”) is a Grameen replication project that was formally launched in 1993. The fund is managed by the Vietnam Women’s Union (VWU), a mass-based national organization to promote the welfare of Vietnamese women. TYM works predominantly in rural agriculture-based communities in the northern provinces of Vietnam, targeting the poorest districts in these provinces. TYM’s members are women living in poor households usually earning less than VND 100,000 ($6.50) a month.
In 1996, TYM launched the Mutual Assistance Fund to protect against the death of a client or family member. The premium is a flat rate rather than a rate based on the size of the loan or the number of family members covered. With a weekly contribution of VND 200 ($1 cent), upon the client’s death, her outstanding loan balance would be written off and her family would receive VND 400,000 ($26) to cover funeral expenses. Likewise, a member would receive a payout upon the death of her spouse or child under 18 years of age. In July 2001, a health benefit of VND 200,000 ($13) was introduced and the death benefit was also revised upwards to VND 500,000 ($32).
This paper was commissioned by the “Good and Bad Practices in Microinsurance” project. Managed by the ILO’s Social Finance Programme for the CGAP Working Group on Microinsurance, this project is jointly funded by SIDA, DFID, GTZ, and the ILO. The major outputs of this project are:
- A series of case studies to identify good and bad practices in microinsurance.
- A synthesis document of good and bad practices in microinsurance for practitioners based on an analysis of the case studies. The major lessons from the case studies will also be published in a series of two-page briefing notes for easy access by practitioners.
- Donor guidelines for funding microinsurance.