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Characteristics and Functions
1. The annual premium charged by SEWA is Rs. 72.5 for members, and an additional optional Rs. 22.5 and Rs. 20 for their husbands.
2. In order to get into the program, members must pay Rs. 72.5. If they want their husbands covered, they can add on life insurance (with a total cost of Rs. 95), or health insurance (Rs. 92.5), or both (Rs. 115). Another way to pay premiums is for members to establish a fixed deposit, where the annual interest on the deposit covers the insurance premiums. Members who pay their premiums from interest earned on their fixed deposit also receive a maternity grant and coverage for cataracts, dentures, and hearing aids, at no additional cost. SEWA requires no co-payments, though insured must pay for health care service in advance and claim for reimbursement.
3. This price is effectively subsidized by (1) interest from the GTZ endowment which SEWA manages, and (2) a Government fund allocated to LIC (in 1989) to cover half of the premium for life insurance of SEWA insured members and husbands (thus, the real premium for natural death insurance is Rs. 45, of which members pay Rs. 22.5). SEWA estimates that members pay approximately 50% of the costs of their insurance coverage, while 25% is subsidized by the Government fund, and 25% is covered by the endowment interest.
