Microinsurance pilot scheme


Micro-insurance is the provision of insurance to low-income households, technically differing from traditional insurance in industrial markets only by its small-scale. Low income households pay a small premium for limited coverage in the event of losses. Micro-insurance offers direct financial risk transfer services and thus disaster risk management tools to low income households.

The main goal of the AIDMI Afat Vimo project in India is to develop and demonstrate a microinsurance scheme that transfers the risks of households and small business iand provides financial protection from disaster losses. The scheme also aims to link microinsurance to mitigation measures. The project is piloting an approach to applying micro-finance and micro-insurance to transfer and mitigate natural disaster risks, using micro-insurance as an incentive for risk reduction activities.


Project activities include:

  • Fund capitalisation for existing micro-finance and micro-insurance applications with particular emphasis on micro-mitigation.
  • Linking of applications with resource flows especially targeting micro-mitigation.
  • Policy dialogue within the rapidly evolving fields of disaster mitigation, credit and insurance with authorities in India on issues of reaching out to the poor and scaling up the coverage.
  • Regional round table of stakeholders to share model in South Asia region with other NGO, GO, CO stakeholders and relevant ProVention partners active in risk transfer.
  • Publication of a series of papers on the project with a practical focus on how to stimulate interest, thinking and approaches on risk transfer and dissemination through other channels as well.


The scheme is being implemented by AIDMI through a pilot project supported by ProVention.

Outputs & events

AIDMI recent publications:


Related completed projects