Everybody in the society desires to be financially secured. But, as a matter of fact,

in our life and livelihood, the surrounding risky environment is hostile to our financial

security. With a view to overcome this hostility, in 1993, ASA initially started a loan

insurance program alongside the microcredit and micro-savings program. But to

make members much more strong financially, ASA has launched the program

insurance program. The main objective of the newly created “Security Fund” is to help

the family members after death of the borrower/member. Primarily this program

was applicable for the borrowers only, but later the coverage has been extended and

opportunity has been created for the savings members also to get access to the

facility. All members must have to deposit Tk. 10 each with their weekly installments

and savings. The total accumulated amount is refundable with dividend on maturity. If a

member dies before maturity of the scheme, the successors of the deceased borrower/

member will get six times of current deposit at that time.

time the members are capable to improve the standard of living by

with its interest/dividend.

The characteristics of the security fund:

a. Weekly premium;

b. Premium is fixed at members’ acceptable rate;

c. The deposited premium will be invested in reducing poverty;

d. After members’ death, the family of the deceased will get the money as financial assistance;

e. After maturity of the policy, the member will get back their entire deposited premium with interest;

f. As soon as the membership is withdrawn the deposited premium with interest is given back;

g. As no formalities to deposit premium, members can deposit it sitting at their own household;

h. The profit of the security fund is distributed among the members in

accordance with proportional rate of interest as dividend.

a. Tk. 10 has to be deposited as premium besides weekly installment and savings;

b. The maturity time of the security fund will be 8 years (400 weeks). After

completion of the policy duration, the members if wish can join again to the

security project.

Members who belong to age between 18-55, if face natural or accidental death, their

successors will get 6 times more amount of their deposited premium from the “ASA

The above table shows, after depositing Tk. 1,000 in 2 years (Tk. 10 per week) Mr. ‘A’

died naturally or accidentally. Now his family will get 6 times of his deposited money total

Tk. 6,000 as death claim. Similarly, Mr. ‘B’ who was able to deposit Tk. 3,500 in 7

years, if dies, his family will get back 6 times of his deposited total premium of Tk. 21,000

as death claim from the members’ security fund.

a. Each and every member of ASA must be a member of this program/activity.

b. The members have to pay weekly savings and installments of the loan regularly.

c. Age range should be between 18-55 years.

1. Claim for member’s death:

When a policy holder dies within 55 years, his/her family will get 6 times of

his/her deposited money. During the group meeting the claim of the money

from security fund is paid to the deceased family according to the

decision of the related group members.

2. Claim after maturity:

When a policy holder is able to run his/ her policy up to 8 years (400 weeks), he/

she be get back the total deposited premium with interest.

If any member leaves the program within one year (50 weeks) he will be allowed for

getting back his/her deposited premium without any interest. Again if he does so

within 51 weeks to 399 weeks, he will get 3% interest on his/her deposited premium.

But after maturity of the policy , i.e. after 8 years (400 weeks) he will be provided 4%

interest. Interest may increase on calculation of profit and loss of the program.

received may be invested in long term.

The causes for which no claim is acceptable:

1. If any member commits suicide,

2. If he/she is killed for the purpose of getting money,

3. If he/she hides any incurable disease,

4. If he/she hides his/her actual age.