Paper Details

Micro insurance products are specifically designed for the low-income marketplace in terms of coverage, premiums, delivery channels, terms and benefits. Micro insurance aims to reduce the vulnerability of low-income families and individuals. The study aimed to assess the impact of micro insurance on risk management of rural households. The study covers a sample of 200 rural households in Canara district of Karnataka and it is identified using simple random sampling. Descriptive research design used to formulate the study. Interview schedule is administered to collect data from the rural households. Findings showed that gender has significant impact on creating awareness on micro insurance policies. The main motivating factors to purchase micro insurance policies consisted of illness coverage, death of family members, disability, loss of property, disease of livestock, business losses and smaller amount of premium. It can be concluded that policy attributes, protection elements, compensation and treatment, and terminal benefit have significant impact on risk management of rural households.

Micro Insurance, Rural Households, Risk Management, Awareness, Motivation,