Micro-insurance: A mechanism for women empowerment through self help group linked LIC

Micro finance is the process of formation of groups to support the poverty incapacitated people by extending money without any collateral security. Micro finance includes savings accounts, insurance products and credit provided to low income unbanked people to increase their economic status in the society. Micro-insurance is a shelter against the hazards of low-income people in exchange of a premium in proportion with the possibility and cost of risk associated. A micro-insurance policy may be a general or a life insurance and done through Non-Government organizations, Self-help groups and Micro-finance institutions. Life Insurance Corporation of India has three micro-insurance products namely, Jeevan Madhu, Jeevan Mangal and Jeevan Deep. The main objective of this study is to find out the need for micro insurance among unbanked people and to find out whether micro insurance helps the unbanked people to enhance their livelihood. Simple random sampling is adopted for the collection of primary information from 150 respondents from Tiruchirapalli town by administering a questionnaire. The data collected were analyzed with the help of statistical tools like Percentage analysis and Chi-square test using SPSS package. The respondents revealed that joining in SHG linked LIC results in the overall socio-economic empowerment in their individual lives. The study concludes that the LIC should create more awareness among unbanked people to improve their standard of living by bringing them under the beneficial umbrella of micro insurance.