How does a composite accident, life, and property product influence the coping capability of low income households after natural calamities?
The Center for Agriculture and Rural Development Mutual Benefit Association (CARD MBA) started in April 1994 as CARD-Members' Mutual Fund (MMF), providing benefits to members in case of death. CARD has since extended benefits to cover spouses and children.
Cordaid is an international development organization based in the Netherlands with experience and expertise in emergency aid and structural poverty eradication. They have a network of almost a thousand partner organisations in 36 countries in Africa, Asia and Latin America.
Package Assistance In case of Disaster (PAID) is a composite health (accident only), life, and property insurance product. With a premium of 250 Philippines Pesos (Php) (USD $5.45), the policy provides the following coverage:
As of September 2009, CARD has issued 74,662 policies.
- Health (accident only): the policy pays for disabilities resulting from accidents according to a schedule. In case accidental death, the policy provides a benefit of Php 100,000 (USD $2,181).
- Life: In case of natural or accidental death of the assured, the beneficiary is entitled to Php 20,000 (USD $436) funeral benefits.
- Property: the policy provides for a Residential House Reconstruction Start-up Capital (Re-House) benefit of up to Php 10,000 ($219) in case of fire or natural calamities. For natural calamities, the beneficiary pays a deductible of 500 Php ($11).
Data sources: Household surveys, focus groups
Sample size: 252 households, 23 focus groups