CGAP Working Group on Microinsurance Good and Bad Practices: TATA-AIG Life Insurance Company Ltd. India, Case Study No. 14

This paper provides a broad overview of how the microinsurance program at TATA-AIG emerged and how it operates including a look at the company's distribution, community outreach, and outsourcing models.

The paper then discusses the partnerships, distribution channels, premium calculation, premium collection, claims management, risk management and controls for the products offered by the scheme. It concludes that the development of micro-agents and their firms is the most significant innovation of TATA-AIG’s microinsurance work. If successful, the model will provide a major means of overcoming the microinsurance distribution problem.

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:

1. A series of case studies to identify good and bad practices in microinsurance.
2. 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.
3. Donor guidelines for funding microinsurance.