Monday, October 7, 2013

Alternative dispute resolution to make microinsurance easier

EDGE DAVAO
FRIDAY, 27 SEPTEMBER 2013 09:34 PDF
BY EJ DOMINIC FERNANDEZ

A more comprehensive dispute resolution will bring a more comfortable claiming method to microinsurance policy holders, especially from the low-income and marginalized sector, through the first leg of the Alternative Dispute Resolution for Microfinance (ADReM) seminars held here.

Insurance Commission (IC) deputy commissioner Ferdinand George Florendo in the seminar held at the Apo View Hotel yesterday, said the alternative dispute resolution they are promoting is for inclusive growth by reaching the poorest of the poor.

The ADReM first public seminar was initiated by the Department of Finance – National Credit Council (DOF-NCC), and the Insurance Commission (IC) to promote to the low-income and marginalized sector that they too can be insured in a more convenient way.

Low Cost, Accessible, Practical, Efficient, ad Timely (LAPET) are the main features of ADReM method, which makes it different from the mainstream insurance, Florendo said.

DOF-NCC director Joselito Almario said as long as the insurance policy has the seal of Microinsurance, the maximum time to claim the benefit should not exceed 10 days, otherwise, complaints can be made by the policy holder or the beneficiary.

He said, there are some 18 insurance companies selling microinsurance, including agents, brokers and cooperatives.

According to Chris Rafal of IC, there were 3.1 million micro insurance policy holders in 2009 which multiplied four times in 2012 with 12 million policy holders.

Microinsurance products have affordable premiums, the benefits correspond to the risks, and claims settlement is fast.

The seminar was the commencement of a nationwide campaign to implement the provisions of the ADReM Frawmework, launched in October 2012 by a technical working group led by the DOF-NCC and the IC, with key representatives from the industry as members and with rechnical support from the German Development Cooperation Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia Programs (GIZ-RFPI Asia).

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