The project will test a model to distribute telemedicine and microinsurance products to low-income customers through an existing banking delivery channel consisting of business correspondents. It will use technology to reduce processing times and administrative costs and improve remote sales force training.

FINO Fintech Foundation, in its role as a business correspondent, will work in a consortium with HDFC Ergo General Insurance Co. and M Health Ventures to develop and test a composite hospital cash (pre-specified cash benefit depending upon days of hospitalisation) and personal accident insurance product that is bundled with telemedicine benefits (phone based health consultation). The product will be distributed by sales force of the business correspondent using smart cards and handheld devices to enrol customers and deliver policy instantly with premium being debited directly from the customers’ accounts.

The project will also develop and test a mobile phone based insurance learning module for training the sales force of the business correspondent. Since the sales force is geographically dispersed it is difficult and expensive to provide ongoing training. The project will test whether mobile phone based training reduces costs and allows learning on a continuous basis.

Among the key challenges expected in the project are:

• Limited experience in pre underwritten health insurance products in India
• Regulatory approvals regarding bundling of telemedicine with insurance may take time
• Keeping a sales force, whose primary job is to open bank accounts, motivated to sell insurance

Consortium Members:
HDFC Ergo General Insurance Company Limited is amongst the leading general insurance companies in India with premium of US$300 million in 2010-2011. A joint venture between HDFC, India’s largest housing finance institution, and Ergo International AG, the primary insurance entity of the Munich Re Group, the company provides a comprehensive range of general insurance products for retail and corporate customers.

MHealth Ventures India Private Limited works with experts in healthcare, telecommunications and development finance to develop simple delivery models that can profitably serve the low-income households by providing reliable healthcare advice at an affordable cost.

CIRM Advisory Services is set up to design innovative risk management solutions for low income households and build an enabling environment for the state and the market to further CIRM’s goal of Safety Nets for All. The company provides innovative design and consulting advice to insurers and national and international intermediaries backed by its portfolio of primary research, sector policy advocacy and on-ground innovative experiments undertaken with market players and international research agencies.