The provision of micro credit has enabled the poor households to increase their income and build their assets. Only 3.19% of the total premium is accounted for by the health insurance premium. Out of the many non-life products launched during the year 2005-06, only one product was under MHI, that too by a stand-alone health insurance company. Many proactive measures like creating a database, capacity building of stakeholders and customized product/process designing have been suggested to take forward the sector to benefit a large number of poor households.

A variety of poverty reduction programs is being implemented in India by the government agencies, international donors, Non-Governmental Organizations (NGOs) and other private development- facilitating agencies. As a result, the poverty level in India came down from 26% in 1999-2000 to 22% in 2004-05 and the India's rank in United Nations Development Program's (UNDP's) Human Development Index moved to 126in 2006. Of late, the Self-Help Group (SHG) movement has been making a silent revolution in India through the emergence of vibrant grassroot-level community structures and it has become an effective tool to address the problem of poverty and empowerment in both rural and urban areas.

The provision of microcredit has enabled the poor households to increase their income and build their assets. But, still they are vulnerable to withstand unexpected health risk events and remain exposed to multiple risks, which take away the gains made due to their association with the SHGs. Besides, the poor living in the risk- prone area (E.g., Flood-prone, Tsunami-prone, etc.), are not willing to invest further for their enterprise development, fearing that they cannot devote full-time to their business as their body condition is weak. Provision of savings and credit services have helped them in managing smaller risks, which they frequently face. But, for securing against most unexpected bigger loss events like accidental injuries, surgery or prolonged hospitalization, MHI will be the best option to ensure them a social and economic security. It is the provision of health insurance cover to the low income households.

Insurance provides the much-needed cover against the unexpected loss events and ensures the household financial security. A well-developed insurance sector is needed for a faster economic development of a country, as it provides the long-term funds for infrastructure development and strengthens the risk-taking ability of the people. Thus, insurance assumes significance by not only reducing the vulnerability of the poor, but also in enabling a faster recovery from the loss event and helping the nation in development of the infrastructure sector. In India, only 10% of the people have some kind of social protection. Table shows the exclusion magnitude of selected countries.

Insurance Chronicle Magazine, Micro Health Insurance, Non-Governmental Organizations, NGOs, United Nations Development Program's, UNDP's, Self-Help Group, SHG, Infrastructure Sector, World Bank, Management Information System, MIS, National Micro Insurance Information Bureau, Insurance Companies.