Background
SEWA started as a trade union movement in 1972 to organize the poor women working in the informal sector. Its objective was to provide full employment to its members by creating income-generation opportunities. It also works to support health, education, housing and insurance needs of the people. It has been developing various specialized systems to help its members become more self-reliant.
The Origin of the Scheme
SEWA had integrated health education component into its education programme and build the awareness of its members on health and hygiene. In the mid-1980s, the demand for curative services increased and SEWA established its health centers in and around Ahmedabad. It also set up medicine shops so that poor women were able to purchase them at lower prices. However, it was realized that it was essential to integrate insurance services with the programme so that members were able to access health services full-fledgedly.
SEWA started negotiating with insurance companies. The companies were skeptical at the beginning as the members belonged to vulnerable groups and might not be able to pay premiums. Finally, LIC (Life Insurance Corporation of India) agreed to cover limited natural death insurance to SEWA members. During 1989-91, SEWA mobilized the government to provide subsidy for premium to insure low-income families for natural death benefit, accidental death and permanent disability. The other half of the premium was paid by the members. SEWA negotiated with United India Insurance (UII) to expand coverage to widowhood (accidental death of the husband), sickness and hospitalization and loss of house and assets. In 1994, SEWA took over the management of health insurance. At present, SEWA is responsible for the core of insurance services to members, including product development, sales, reserves and liquidity management, financial management, member services and claims processing.
