1. Introduction:

 

Most of the ASA members live in the villages. If a member dies either normally or by accident, the family becomes insolvent. The family members are in a fix to repay the loan and to run the family at a time. Considering it important to relieve the family from this situation, ASA took a decision in 1993 for introducing an insurance called “ASA Members’ Loan Insurance”. But this insurance relates to loan only. Realizing the importance of the future security in the life of other members in the family, another insurance product has been designed as “Members’ Security (Life Insurance) Fund”.

1. Objective of Members’ Security (Life Insurance) Fund:

 

The main objective of this fund is to provide the legal successors of the deceased members with financial assistance due to sudden normal or accidental death of the members.

2. Members’ age and duration of policy in Members’ Security (Life Insurance) Fund:

 

1.1. Age of Subscriber of Policy: All ASA members, male or female, who are in the age of 18 to 55 years are included in this policy. Non-members are not allowed. The insurance policy shall be ceased with the withdrawal of membership.

 

1.2. Duration of Policy: Duration of policy is 8 years (400 weeks) or attaining 55 years whichever is easier. Policy gets maturity with the fulfillment of 8 years (400 weeks) or attaining 55 years whichever is easier. All the deposited money will be returned to the member with interest.

 

1.3. New Policy: The member can get a chance of taking a new policy after maturity of his/her first policy of security fund, if he/she is still under 55 years. In this regard his/her present policy will be considered as an entirely new one.

 

1.4. People who have been suffering from acute diseases are not allowed to take part in this policy. ASA never permits anybody to be its member if he/she is sick seriously.

 

 

4. Premium of Security Fund:

The weekly premium of Members’ Security Fund is Tk.10. That means a member deposits Tk.10 as Security Fund every week. All the members with Small, Small Business and SEL loans are involved in this criteria and each of their premium is Tk.10.

5. Repayment of Security Fund:

5.1. Claim Payment: The successor will get six times of deposit premium in case of the member’s death after taking the policy. As for example, if a member dies after depositing the premium of Tk.2,000 (Tk.10 per week) in Security Fund, the successor of the policy holder will get Tk.12000 (2000x6) from Members’ Security Fund.

5.2. Procedures of Approval in the Claim Payment of Policy:

5.2.1. A branch manager approves payment of the claim of policy on the basis of recommendation of the concerned LO. District Officer justifies the application carefully at the time of monitoring. He writes his comments and puts his signature.

5.2.2. This claim is not valid if the member commits suicide. If it happens the deposited money with interest is returned.

If the member is alive the following procedure is followed:

5.3. Payment on Maturity: The policy holder is made payment of his total deposited premium with interest immediately after fulfillment of policy duration (8 years/400 weeks).

5.4. Payment of Security Fund to Dropout Members: If a member leaves the group or his/her membership is cancelled within a year at the beginning of the Security (Life Insurance) fund, his/her total deposited premium that means principal money is refundable without interest. If a member leaves the group or his/her membership is cancelled within 8 years from immediately after a year of beginning of the Security Fund that means within 51 to 399 weeks, his/her total deposit premium with interest is returned.

6. Savings Members and Drop Premium:

6.1. A borrower usually waits for subsequent loan after repaying his/her previous loan. If this kind of member deposits savings and premium regularly without withdrawing the savings, his/her security fund policy will continue up to taking the next loan. As a saving member, security fund can be continued to maximum 3 months or 14 weeks.

6.2. Security fund premium can be stopped up to maximum 3 weeks in a year in case of maternity, diarrhoea or falling in serious diseases. If he/she pays regular premium along with default premium with the beginning of loan installment, security fund can be run. If a member fails to deposit security fund premium for 4 weeks in a year, the policy shall be cancelled. In this case a new policy can be started transferring the money to savings.

 

 

1. Interest on Members’ Security (Life Insurance) Fund:

 

‘Members’ Security (Life Insurance) fund’ is a non-profitable project. A part of members’ deposited premium is invested here. Interest is allotted to the depositor of Members’ Security (Life Insurance) fund from the profit at the end of duration and due to dropout with the principles stated below. The principles of providing interest to Members’ Security (Life Insurance) fund:

7.1. If a policy is broken within 8 years from immediately after 1 year that means 51-399 weeks, the policy holder gets back the deposited fund with 3% interest in simple rate and after 400 weeks that means at the end of duration with 4% interest.

7.2. Interest will be applicable only for regular depositors and for full year.

7.3. Interest will be given to the members, who are regular depositors but whose duration is not yet expired, with the following criteria:

7.3.1 No interest on the money on deposit of security fund will be allowed in case of dropping of the member within weeks of 1-49.

7.3.2. If a member drops after fulfillment of 50 weeks and also within weeks of 51-100, he/she will get back deposited premium with interest of Tk.7 on the deposited money.

7.3.3. If a member drops after fulfillment of 100 weeks and also within weeks of 101-150, he/she will get refund of the premium deposited with interest of Tk.29 on the money on deposit.

7.3.4. If a member drops after fulfillment of 150 weeks and also within weeks of 151-200, he/she will get return deposit premium with interest of Tk.65 on the deposited money.

7.3.5. If a member drops after fulfillment of 200 weeks and also within weeks of 201-250, he/she will get back deposited premium with interest of Tk.117 on the deposited money.

7.3.6. If a member drops after fulfillment of 250 weeks and also within weeks of 251-300, he/she will get return deposit premium with interest of Tk.184 on the deposited money.

7.3.7. If a member drops after fulfillment of 300 weeks and also within weeks of 301-350, he/she will get back the deposited premium with interest of Tk.266 on the deposited money.

7.3.8. If a member drops after fulfillment of 350 weeks and also within weeks of 351-400, he/she will get back the deposited premium with interest of Tk.362 on the deposited money.

7.4. In fulfillment of 400 weeks that means at the end of duration the member gets back the deposited premium along with interest of Tk.643 on the deposited money.

Husband’s/Guardian’s Security (Life Insurance) Fund

1. Introduction:

In view of providing financial assistance to members’ family by creating the scope of small savings and security for them due to death of husband/guardian, an initiative has been taken in introducing the Husband’s/ Guardian’s Security Fund. It is seen in reality that in absence of husband almost each family is in a fix as its income is too small to repay the loan and to maintain itself. In order to overcome this situation, ASA has taken decision in introducing and implementing the project of Members’ husband/guardian small insurance which is entitled as ‘Husband’s/Guardian’s Security (Life Insurance) Fund’.

 

 

2. The Rules of Husband’s/Guardian’s Security (Life Insurance) Fund:

 

2.1. Duration of Policy: 4 years or up to 55 years old.

 

2.2. Weekly Premium: Tk.10.

 

2.3. Rate of Interest: Yearly 2%.

 

2.4. Death Risk: 3 times in deposit premium.

 

2.5. Age Range: - The age of members’ husband/guardian should be under 55 years.

 

- In spite of age below 55, no person affected with fatal disease will be allowed to be a policy holder.

- Insurance gets matured before the fulfillment of 4 years of the policy or with the fulfillment of 55 years of guardian’s age. As for example, if a husband/guardian takes a policy at the age of 52, the age of policy will be of 3 years during the fulfillment of his age of 55. In this case the policy gets matured in 3 years and money on deposit is returned with interest.

- In determining the age of husband/guardian, calculation should be done by guessing how many years he got married, after how many years the first child was born, how many years old that child is now etc. With this information the important events like the war of liberation, flood in 1988 etc. should be compiled.

 

 

3. Others:

 

3.1. This product is not compulsory for the members. It will depend on willingness of the husband/guardian.

 

3.2. The husband or guardian on whose name the premium of security fund is being deposited should be selected first and the name to be written on the first page of the Savings & Pass Book except cover page that means the relationship with the policy holder should be mentioned. It is a must that the specimen signature of husband or guardian to be attested on the same page.

 

 

4. Interest on Husband’s/Guardian’s Security (Life Insurance) Fund:

 

Interest is given to the depositor of husband’s/guardian’s security fund caused by dropping out and ending duration as per mentioning below. Principles of interest on Husband’s/Guardian’s Security (Life Insurance) Fund:

4.1. Interest on 4-year periodic husbands/guardian’s security (life insurance) fund is yearly 2%. If policy is dropped within or before duration, deposit premium with 2% interest on flat rate is returned.

4.2. Interest will be applied only for regular depositor and for full year. Like the principle of interest on small savings no interest is awarded for interim period.

4.3. Interest is given to the policyholder who is regular depositor but duration of his policy is not yet terminated is mentioned below:

4.3.1. No interest is awarded on the money deposited as security fund if policy is dropped within 1-49 weeks.

4.3.2. If a policy holder drops after fulfillment of 50 weeks and also within weeks of 51-100, he will get back the deposited premium with interest of Tk.5 on the deposited money.

4.3.3. If a policyholder drops after fulfillment of 100 weeks and also within weeks of 101-150, he will get return deposit premium with interest of Tk.19 on the deposit money.

4.3.4. If a policy holder drops after fulfillment of 150 weeks and also within weeks of 151-200, he will get back the deposited premium with interest of Tk.43 on the deposited money.

4.4. In case of fulfillment of 200 weeks that means at the end of duration the policy holder gets back the deposited premium along with interest of Tk.78 on the money deposited.

Approval procedure along with claim repayment and other criteria of Husband’s/ Guardian’s Security (Life Insurance) Fund are the same as that of the Members’ Security Fund. After withdrawal of all the money with interest at the end of duration of policy, member’s husband or guardian under a fixed limit age is allowed to deposit the premium again to a new Husband’s/Guardian’s Security (Life Insurance) Fund.

Health Assistance

1. The Criteria of Taking Facilities from “Health Assistance Centre”

1.1. To take facilities from “ASA Health Assistance Centre” no fees or money is needed.

 

1.2. If any ASA member or staff intends to stay at “ASA Health Assistance Centre”, he/she has to apply to the centre with the documents of doctor’s advice related to the treatment of disease or test and reference of the organization for treatment in Dhaka (if any).

 

1.3. Only all of the ASA members and ASA staff suffering from serious diseases and who intend to stay in Dhaka for treatment are allowed to stay in the “Health Assistance Centre”.

 

1.4. Assistance regarding treatment is given as per patient’s demand and doctor’s referred letter. Assistance is available along with advice for good physicians for particular disease, good diagnostic houses with low cost for pathological test etc.

 

1.5. The persons except ASA members but who are related with ASA, i.e., the journalists of outside the capital city, the house owners of ASA field offices will stay in the centre for treatment. They will be facilitated if they communicate previously and seats are available/ vacant in the centre.

 

1.6. Facility is given on the basis of the principle- ‘first come first serve’.

 

1.7. One patient with one attendant is allowed to stay in the “Health Assistance Centre” free of cost. All cost regarding treatment and pathological test should be borne by the concerned patient.

 

1.8. Food for the patient and his/her attendant staying in the centre has to be collected/ purchased from outside with their own cost.

 

1.9. No treatment facility is in the centre.

 

1.10. Following are the procedures/information for ASA staff and ASA members:

1.10.1. Recommendation is needed from BM for LO, DO for BM and team leader for DO (on written application).

1.10.2. Residential facility in the “Health Assistance Centre” is given to a patient along with a physically fit adult attendant. No attendant more than one is acceptable. But maximum 2 children under 8 are allowed to stay here with their mother.

1.10.3. No cooking utensils except plates, glasses and jugs are supplied as there is no arrangement for cooking for those who stay in the centre.

1.10.4. The patient and his/her attendant must be non-smoker.

1.10.5. The patients whose treatment and pathological test are not possible to be done in Thanas and Districts are given priority to stay in the centre for treatment and test.

1.10.6. The patient and his/her attendant have to attend the “Health Assistance Centre” after communicating properly with the superintendent of the centre for booking seats, otherwise the authority will not be liable for allotting sent for them.

1.10.7. Patients who suffer from infectious diseases are not allowed to send to the centre unless they are allotted the full room.

1.10.8. All the facilities in the “Health Assistance Centre” with cots, quilts, mattresses have been arranged for staying in the centre.

1.10.9. No seat in the health centre except for treatment will be allowed to allot for ASA’s staff/officials or his guest. No request or pressure can be applied for this purpose.

 

Medical Grant

ASA has a reputation home and abroad as a successful rapid expanding non-government micro finance institution through taking part in the activities of poverty alleviation with the hope of changing life of millions of people. This tremendous achievement has been possible due to the tireless hard work and sincerity of the staff and dynamic leadership of the Founder-President of the organization Md. Shafiqual Haque Chaudhury.

Most of the members of the organization are poor living under poverty line. They usually can not afford to bear the medical cost in case of fatal diseases. In many cases it is found that they become penniless as they sell all assets they have to bear the expenses of treatment. To resist this situation and to ensure the medical facility for ASA group members, ASA has decided to launch “Medical Grant Fund” from its income. In order to facilitate for treatment from this fund, a branch wise annual grant of Tk.20 million along side a lump sum grant of Tk.5 million has been sanctioned for the year of 2005. It is manifested that this grant will be given on the basis of priority and importance of disease. It has been planned for a gradually increasing annual budget for the next years so that many more members can be rendered financial assistance.

2. Objectives of Forming Medical Grant Fund:

 

2.1. The prime objective of this fund is to facilitate only the ASA members who suffer from serious and fatal health problem. Members do not have to pay any fees for this purpose.

 

2.2. A financial cooperation from the budget of Tk.5 million for the year 2005 is rendered for the diseases of cancer (blood, lungs, bone, stomach, throat), acid-burn, heart operation (changing valve, repair, by-pass), backbone operation, brain tumor, paralysis, changing knee’s pedula, waist operation, stone removal, kidney damage/transplant etc.

 

2.3. With a view to spare a portion of surplus income from service charge for the welfare of ASA members suffering from complicated and permanent problem due to accident, cooperation is rendered for them from this fund as per situation.

 

2.4. A branch-wise financial cooperation from the budget of Tk.20 million for the year 2005 is rendered for the group members for their other incurable diseases like cataract operation, minor bone operation or treatment (hand/leg broken), breast cancer, uterus operation and caesarian delivery.

 

 

3. Procedures and Steps of Implementation:

3.1. This fund is running through a committee under direct supervision from ASA Central Office.

3.2. The president of ASA is responsible as the chairperson for this committee.

 

3.3. A committee comprised of the President, an Executive Vice President, Head-Admin & Accounts, a Program Manager and a Personal Officer execute all the development activities along with entire income and expenditure of this welfare fund. It is known as ‘The Committee of Medical Grant Fund.’

 

3.4. The implementing procedure and the grant of the “Medical Grant Fund” are divided into two groups. A branch wise grant (as per number of LO) has been sanctioned from Tk.20 million for some simple diseases for the year 2005 (for one year) which can be implemented by the field level committee as per the amount of grant. For serious diseases the central committee can implement as per rules from the lump sum grant of Tk.5 million for the year 2005 (for one year).

 

 

4. Procedure of Providing Grant from the Money Sanctioned:

 

Yearly lump sum grant for implementing by Central Office is Tk.5 million. The names of the diseases and the way to spare of this grant are stated below:

Following is the condition on which sanctioned money is provided for the diseases stated above:

4.1. For all kinds of cancer, stone removing, kidney damage/transplant, brain tumor, heart operation (valve change, repair, by-pass), backbone operation, orthopedic treatment, change of kee’s peduela along with other operation:

4.1.1. No member is given assistance unless he/she can fulfill two years of his/ her membership. This is why these types of diseases usually are not created within 1/2 years.

4.1.2. The financial assistance, 25% of determined ceiling, is awarded if the above mentioned diseases are traced out for treatment within the year above 2 to 4 of getting membership.

4.1.3. The financial assistance, 50% of determined ceiling, is awarded if the above mentioned diseases are traced out for treatment within the year above 4 to 6 of getting membership.

4.1.4. The financial assistance, 75% of determined ceiling, is awarded if the above mentioned diseases are traced out for treatment within the year above 6 to 8 of getting membership.

4.1.5. The financial assistance, 100% of determined ceiling, is awarded if the above mentioned diseases are traced out for treatment within the year above 8 of getting membership.

4.1.6. The medical cost for the members mentioned above is awarded with the principle of ‘first come, first serve.’ No scope is left to assist to other members for treatment for the particular year when the money sanctioned from the budget of lump sum grant is spent out. It is manifested that the member suffering fatal diseases and intending taking financial assistance from this fund next year will be awarded on the basis of ‘first come, first serve’ through the budget of lump sum grant.

 

4.2. If any ASA member has to stay in hospital in a month or more due to accident or physical sickness, he/she is facilitated with financial assistance for paying his/her real medical cost, i.e., doctor’s fees, medicine, hospital seat rent, operation cost etc. from the surplus budge of lump sum grant of “ ASA Medical Grant fund.”

 

Following are the procedures in which members are provided financial assistance:

4.2.1 No member is given assistance unless he/she can fulfill two years of his/ her membership.

 

4.2.2 The financial assistance, 25% cost of treatment, is awarded if the member has to stay in hospital in particular time for causing accident or physical sickness within the year above 2 up to 4 of getting membership.

 

4.2.3. The financial assistance, 50% cost of treatment, is awarded if the member has to stay in hospital in particular time for causing accident or physical sickness within the year above 4 up to 6 of getting membership.

4.2.4. The financial assistance, 75% cost of treatment, is awarded if the member has to stay in hospital for particular time for facing accident or physical sickness within the year above 6 up to 8 of getting membership.

4.2.5. The financial assistance, 100% cost of treatment, is awarded if the member has to stay in hospital in particular time for causing accident or physical sickness within the year above 8 of getting membership.

4.3. The president can approve with his special consideration any amount of money as treatment cost for other complicated diseases except the above mentioned if surplus budget of lump sum grant has been available after spending for particular year.

 

4.4. Procedure of providing grant from the sanctioned lump sum money:

 

4.4.1. Sick members under treatment have to send applications along with documents of treatment to the committee of “Medical Grant fund” through concerned Branch Manager.

 

4.4.2. Concerned LO and BM submit the application along with treatment related documents with their recommendation to concerned DO/DM/DA of the branch after verifying the treatment cost mentioned in the application. District team leader along with other district officials verify the documents of members’ disease, treatment and cost of it and recommend towards the committee. The committee sends applications to the President for his decision with commentsafter reviewing thoroughly the cases and maintaining serial numberson the basis of first come, first serve.

 

4.4.3. One time grant is usually awarded through above mentioned procedures after treatment or 50% cost may be given during treatment.

 

4.4.4. Above all, required financial assistance is awarded with the approval of the President as per recommendation of the committee from lump sum grant.

 

4.4.5. A member with defalcation of highest 8 installments in a loan circle/ irregular installment payee/bad debt is not allowed to enjoy this facility.

 

 

5. Rules of Procedure Directly by Field Level Committee for Simple Diseases:

 

Yearly branch-wise amount of sanctioned money

• No member who is included in the group having bad debt is allowed to get treatment facility.

 

 

5.1. A briefing on getting assistance against simple diseases from ‘Medical Grant Fund’: Financial assistance is awarded from the branch-wise sanctioned budget of “Medical Grant Fund” only for simple incurable diseases and physical problems stated below:

The mentioned diseases are possible to treat within Thana level. Treatment cost of these diseases is borne from branch wise budget.

No scope is left to assist other members for treatment for the particular year when the money of sanctioned annual budget for the branch is spent out. It is manifested that the member suffering from diseases and intending taking financial assistance from this fund for next year will be awarded on the basis of ‘first come, first serve’ through the branch wise annual budget. If the sanctioned money of branch wise annual budget is not spent out for medical assistance within the year, the surplus money is awarded as financial assistance adding with annual budget for the next year.

Following is the condition in which sanctioned money is provided for mentioned simple but incurable diseases and health problems:

5.1.1. No member is given assistance unless he/she can fulfill two years of his/ her membership.

5.1.2. The financial assistance is awarded for the treatment of above mentioned diseases through the sanctioned money for concerned branch when the year of membership becomes above 2.

5.2. Implementing Procedure and Steps:

5.2.1. Medical grant is awarded for simple diseases from the sanctioned budget through the district committee under supervision of ASA district office.

 

5.2.2. As the chief of the district committee ex-officio ASA district chief is responsible for this fund.

 

5.2.3. A committee consisting of district chief, district official, manager of sadar branch and one of its LOs approve for expanding the sanctioned money of branch wise annual budget of concerned district.

 

5.3. Procedure of Application for Getting Grant for Simple Diseases:

 

5.3.1. Applications along with treatment related documents have to be sent to the district committee of “Medical Grant Fund” under concerned Branch Manager.

 

5.3.2. Concerned LO and BM submit the application along with treatment related documents of the sick member with their recommendation to concerned DO/DM/DA of the branch after verifying the treatment cost mentioned in the application. Concerned district committee verifies the documents of members’ disease, treatment and cost of it and recommends it.

5.3.3. One time grant is usually awarded through above mentioning procedure after treatment or 50% cost may be given during treatment.

5.3.4. A member with defalcation of highest 8 installments in a loan circle/ irregular installment payee/bad debt must not be allowed to enjoy this facility.

 

Primary Health Care and Free Medicine Distribution

1. Introduction:

ASA has been recognized widely as the largest non-government financial assistance organization for poverty alleviation. The role of members is acknowledged for achieving this reputation. Most of the ASA group members are poor and capable of only putting signature. Though some of them know how to read and write, they have no proper conception regarding health and sanitation. In fact, it is true that anemia and lack of calcium can be removed through a minimum health consciousness. Anemia and weakness of the family members, the sanitation system especially water borne fatal diseases, i.e., diarrhoea, dysentery, hookworm, jaundice, typhoid are possible to be controlled. The poor and helpless members usually become penniless because of spending money for the treatment of affected patients. Again in some cases failing to consult the doctor in time, the diseases do not come under control and in this situation death may happen. When a family member falls in a disease, the peace of family is disturbed and the family is hampered financially. As a result, the other members of the family waste their valuable time for the service of patient’s treatment and thus their income falls. So the members suffer severely due to scarcity of money. With this, a barrier is created to run the present activities with family. Realizing this problem, ASA has launched the program of “Primary Health Care and Free Medicine Distribution” for its clients.

 

 

2. Aim and Objective:

Through primary health care and assistance, ASA’s aim is to give a conception to its members regarding anemia related weakness and diseases caused for lack of calcium. To improve the situation of sanitation and health, ASA aims to develop the socio-economic condition of the members. Aim of distributing some particular medicines free of cost in the nick of time especially in the months of July-August and December–January is to assist the members’ family to be free from attack of diseases.

 

 

3. Implementing Procedure and Steps:

A grant of amount Tk.(50,00,000+25,00,000)75,00,000 has been sanctioned with a view to distributing some medicines for particular period and some for all time in the family of ASA members.

Advice should be given to member’s husband and member herself for avoiding smoking and it is manifested that free medicine should be distributed with priority to the members who are non-smokers.

3.1. Medicine Distribution in a Particular Period of the Year: Oar saline, water purification tablet during flood, tablet for dysentery and fever etc. medicines free of cost are distributed in priority basis among the families of non-smoking members during the period of July-August and December-January (two times in a year) or as per need in time of seasonal diseases.

3.1.1. Branch-wise amount of sanctioned money (yearly) for free medicine distribution in particular period of the year: