Micro-insurance for the poor | Bangkok Post: learning

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Micro-insurance for the poor

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For sale in 7-11 soon, low-cost insurance policies for poor people to deal with risks such as cancer, Songkran accidents or home fires. 

A severely damaged automobile after a road accident with repair costs greatly exceeding its value (total loss, totalled) (Source: Wikipedia)

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Financial Advice

Insuring the masses

With micropolicies soon to be sold in convenience stores, low-income earners will have easier coverage options.
11 Mar 2013
Somruedi Banchongduang

This building may become a "total loss" if its insurer determines that the cost of repairing it exceeds that of its insured value (insured sum) (Source: Wikipedia)

...Life insurance was once considered a product for middle- and high-income consumers with big savings, but this is no longer the case. Insurance firms have begun to pursue low-income consumers, offering lower fees and contributions and easier access.

The latest initiative has seen insurance firms selling microinsurance policies at convenience stores. ...we can now by our insurance at 7-Eleven ...

Both life and non-life microinsurance policies from the five leading providers will be available at all 8,500 points of Counter Service, 6,800 of which are in 7-Eleven stores.

The five insurers are Muang Thai Life Assurance, Bangkok Insurance, Muang Thai Insurance, Alliance Ayudhya Assurance and Thaivivat Insurance.

Microinsurance is aimed at low-income earners, giving rural people better access to insurance coverage. Residents in the provinces normally have no risk protection due in large part to the high prices and complexity of financial products. 

As a result, the Office of the Insurance Commission (OIC) initiated microinsurance to cater to consumers who can afford annual premiums of up to 1,000 baht. Another key feature of the products is ease of understanding. 

Muang Thai Life Assurance will launch the first life insurance policies next Monday, with premiums of 1,000 baht a year for a five-year period and maximum protection of 278,000 baht.

It plans to offer two travel policies next month for people wishing to guard against risk during Songkran - short-term protection for 1-5 days for 120 baht and protection for 6-10 days for 200 baht. Both types of policies have an equal assured amount of 200,000 baht. The company will also offer 10,000 baht for medical expenses. 

Alliance Ayudhya's residential fire insurance will be available at Counter Service with a 500-baht annual premium covering fire, lightning and bombs. It will provide an insured sum of 200,000 to 500,000 baht, depending on property type. 

Thaivivat Insurance will offer cancer protection for an annual premium of 711 baht, paying 50,000 baht when the client discovers the illness. In addition, it will pay for medical care of 20,000 baht a month for 10 months, up to a total of 70,000 baht.

Bangkok Insurance's personal accident policies will also be on sale at a 490-baht annual premium for a total insured sum of 100,000 baht. The policy will offer an additional 50,000 baht of extra expense. Clients will be entitled to a higher sum insured of 25% a year or a combined 200,000 baht during the protection period if stretched to four years... 

To buy a policy, clients are required to insert their ID card into a card reader and enter their mobile number. After getting the payment slip, they receive a confirmation text message from the insurer. The policy will be sent to their home address soon afterward. 

Counter Service, the payment service provider of the Charoen Pokphand Group's CP All Plc, has developed both human resource and information technology systems in preparation for microinsurance sales. It is the first to receive a licence from the OIC to sell microinsurance products.... 

"We expect low-income earners to buy more insurance policies under the microinsurance option... Normally, 7 million customers go to 7-Eleven each day. Half the country's population uses 7-Eleven's services. Clients visit the convenience store twice a week on average," ...

Areepong Bhoocha-oom, the finance permanent secretary, said microfinance can help to reduce social inequality, offering an opportunity for low-income people to access risk protection for life and property, as medical care is a problem for low-income people when they fall ill. 

(Source: Bangkok Post, Financial Advice, Insuring the masses, With micropolicies soon to be sold in convenience stores, low-income earners will have easier coverage options, 11 Mar 2013, Somruedi Banchongduang, link


Insurance Sector Vocabulary

insurance - a system that pays money to help people harmed by bad event (See Wikipedia) การประกันภัย  

life insurance
health insurance
accident insurance
fire insurance
flood insurance

insurer
- a company that sells insurance policies and provides insurance coverage as a business

insurance policy -
a written contract for insurance
microinsurance policies
microinsurance policies sold at convenience stores

micro -
very small เล็กมาก
micro-insurance - insurance for poor people with very small payments covering a set of well-defined risks (See Wikipedia)
micropolicies

insurance coverage - the protection from insurance against injury, loss or damage
better access to insurance coverage

options - choices ทางเลือก the different things that someone can choose to do ทางเลือก
easier coverage options

total loss -
when a car, home, building, etc is damaged beyond repair (See Wikipedia)
totalled - Same as "total loss" in the US

insurance premium -
an amount of money that you pay for insurance (either once or regularly)
a 500-baht annual
premium
a 500-baht annual premium covering fire, lightning and bombs

sum - an amount of something, especially money จำนวนเงิน
insured sum - the amount of protection that an insurance policy provides (expressed in terms of money)



microfinance - a system that provides poor people access to financial services such loans and insurance (See Wikipedia)
finance (noun) - the activity of providing money for businesses and other activities and projects จัดหาเงินทุนให้
financial
(adjective)

financial services - "the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises" (See Wikipedia)

inequality - การไม่เท่ากัน
social inequality -
"a situation in which individual groups in a society do not have equal social status, social class, and social circle. Areas of social inequality include voting rights, freedom of speech and assembly, the extent of property rights and access to education, health care, quality housing, traveling, transportation, vacationing and other social goods and services. Apart from that it can also be seen in the quality of family and neighbourhood life, occupation, job satisfaction, and access to credit... The results of such social inequalities can be seen around the globe in the history of all countries. Social inequality is different from economic inequality..." (See Wikipedia)
microfinance can help to reduce social inequality

opportunity - a situation when it is possible to do something that you want to do (See glossary)
microfinance offers an opportunity for low-income people to access risk protection for life and property

Areepong Bhoocha-oom, the finance permanent secretary, said microfinance can help to reduce social inequality, offering an opportunity for low-income people to access risk protection for life and property, as medical care is a problem for low-income people when they fall ill. 



masses - large numbers of people ประชาชนจำนวนมาก
the masses - most of the people in a society (who are not rich and powerful members of the elite)
insuring the masses

convenience - the quality of being suitable for your purposes and needs and causing the least difficulty ความสะดวกสบาย
convenience store - a small neighborhood store like 7-11
micropolicies sold in convenience stores

low-income earners - poor people

With micropolicies soon to be sold in convenience stores, low-income earners will have easier coverage options.

no longer the case - was true, but not true now
...Life insurance was once considered a product for middle- and high-income consumers with big savings, but this is no longer the case.

pursue - to try to achieve something พยายามเพื่อให้ได้มาซึ่ง ดำเนินตาม, พยายามเพื่อให้ได้มาซึ่ง ทำให้ลุล่วง
pursue low-income consumers

fees - money that you pay to be allowed to do something ค่าธรรมเนียม
offering lower fees

contributions - the amount given by each member to the shared fund
offering lower contributions

access - the ability to get something สิทธิหรือโอกาสในการใช้
offering easier access
better access to insurance coverage

Insurance firms have begun to pursue low-income consumers, offering lower fees and contributions and easier access.

consumers - people who buy things (individuals and families)
income - money that people receive from work or some other source, used for household consumption and savings
middle- and high-income consumers 
middle- and high-income consumers with big savings

initiative - a new plan for dealing with a problem or achieving some goal ความคิดริเริ่ม
the latest initiative

The latest initiative has seen insurance firms selling microinsurance policies at convenience stores. ...we can now by insurance at 7-Eleven ...

Both life and non-life microinsurance policies from the five leading providers will be available at all 8,500 points of Counter Service, 6,800 of which are in 7-Eleven stores.

The five insurers are Muang Thai Life Assurance, Bangkok Insurance, Muang Thai Insurance, Alliance Ayudhya Assurance and Thaivivat Insurance.

aimed at
- has as a goal to get this kind of customers 
microinsurance is aimed at low-income earners

rural - in the countryside (farms, forests), not the city ในชนบท, บ้านนอก
rural people

Microinsurance is aimed at low-income earners, giving rural people better access to insurance coverage.

residents -
people who live in a place
residents in the provinces

risk - danger, how likely or possible it is for a bad event that causes harm and damage ความเสี่ยง
risk protection

due in large part to ... - this is one important thing that made it happen ....

complexity - when things are difficult to understand (because they have many parts connected in many ways)
the complexity of financial products. 

Residents
in the provinces normally have no risk protection due in large part to the high prices and complexity of financial products. 

annual
- happening once a year ประจำปี
annual premiums

afford - to have enough money to be able to pay for something มีเงินพอจับจ่าย ซื้อหา มีเงิน/ทุนพอ
afford annual premiums of up to 1,000 baht

key - important คนสำคัญ
feature - to include someone or something as an important part ทำให้เด่น
key feature

ease - the ability to do something easily ทำให้ง่าย บรรเทา
ease of understanding

initiated - created; started ริเริ่มโดย

As a result, the Office of the Insurance Commission (OIC) initiated microinsurance to cater to consumers who can afford annual premiums of up to 1,000 baht. Another key feature of the products is ease of understanding. 

launch - to start selling a new product or service to the public เริ่มวางขาย เริ่มต้น เริ่มโครงการ
launch  life insurance policies

maximum - the most possible ที่สูงสุด ที่มากที่สุด
maximum protection
maximum protection of 278,000 baht.

Muang Thai Life Assurance will launch the first life insurance policies next Monday, with premiums of 1,000 baht a year for a five-year period and maximum protection of 278,000 baht.

residential - houses for families to live in (not businesses) บริเวณที่พักอาศัย
residential fire insurance

provide - to give someone something that they want or need
the insurance policy will provide an insured sum of 200,000 to 500,000 baht

property
property type
coverage depends on property type

Alliance Ayudhya's residential fire insurance will be available at Counter Service with a 500-baht annual premium covering fire, lightning and bombs. It will provide an insured sum of 200,000 to 500,000 baht, depending on property type. 

client - a customer or someone who receives services ลูกค้า
the insurance policy will pay 50,000 baht when the client discovers the illness

Thaivivat Insurance will offer cancer protection for an annual premium of 711 baht, paying 50,000 baht when the client discovers the illness. In addition, it will pay for medical care of 20,000 baht a month for 10 months, up to a total of 70,000 baht.

entitled - having the right to have or do something มีสิทธิโดยชอบ

Bangkok Insurance's personal accident policies will also be on sale at a 490-baht annual premium for a total insured sum of 100,000 baht. The policy will offer an additional 50,000 baht of extra expense. Clients will be entitled to a higher sum insured of 25% a year or a combined 200,000 baht during the protection period if stretched to four years... 

clients - customers (more formal) ลูกค้า

insert - to put something inside something else, or to add something, especially words, to something else แซม, แทรก, แทรกเข้า
insert their ID card into a card reader

To buy a policy, clients are required to insert their ID card into a card reader and enter their mobile number. After getting the payment slip, they receive a confirmation text message from the insurer. The policy will be sent to their home address soon afterward. 

licence - an official document that gives someone permission to do or use something ใบอนุญาต
a licence to sell microinsurance products

Counter Service, the payment service provider of the Charoen Pokphand Group's CP All Plc, has developed both human resource and information technology systems in preparation for microinsurance sales. It is the first to receive a licence from the OIC to sell microinsurance products.... 

option - a choice; something that you can choose in a particular situation ตัวเลือก  ทางเลือก
the microinsurance option

population - the group of all people living in a country or area or place กลุ่มที่อาศัยอยู่ในบริเวณหนึ่ง
services - บริการต่างๆ  
half the country's population uses 7-Eleven's services

"We expect low-income earners to buy more insurance policies under the microinsurance option... Normally, 7 million customers go to 7-Eleven each day. Half the country's population uses 7-Eleven's services. Clients visit the convenience store twice a week on average," said Mr Weeradej.

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