Jordan’s Microfund for Women launches Microinsurance Product ‘CareGiver’

Microfinance Focus, June 29, 2010: Microfund for Women (MFW), Jordan’s first microfinance program has recently launched the region’s first gender-sensitive microinsurance product, CareGiver. The products targets to help low-income women better cope with financial burdens associated with a medical emergency. With support from the International Labor Organization (ILO), MFW and its partner, Women’s World Banking (WWB), are providing this innovative insurance policy to MFW borrowers, of which there are currently 52,000. Ninety-seven percent are women. Clients pay a nominal monthly premium with their loan repayment and receive coverage for each night they stay in hospital.

Launched in April, CareGiver (or Ri’aya in Arabic), is designed to help women and their families better cope with the incidental expenses associated with hospitalization, such as medical fees, lost income and childcare. Mary Ellen Iskenderian, President and CEO of WWB, says: “Women, more often than not, are the family’s primary caregiver. During a health event, there’s more than just medical expenses – lost wages, childcare, even transportation to and from the hospital – all add pressure on that household during a tough time. The CareGiver Program is designed to address just that issue.”

Clients are automatically covered when they take a new loan from MFW; they do not need to have a medical exam, and there are no exclusions for pre-existing conditions. Women are also covered if they need to go to hospital when they are pregnant. Clients can use their coverage on anything they choose, from transportation costs, nutritious food to covering financial losses from their business incurred due to their hospital confinement.

In the case of an unforeseen health event, low-income families typically use their savings or borrow from others to cover the expenses. In some cases, they may temporarily remove children from school to contribute to the family income,” says MFW Deputy General Manager, Fatina Abu Okab. “CareGiver will allow women and their families to manage risk and use their assets more productively.”

Last month, Naela Hamdan became the first claimant of CareGiver. An MFW client for seven years, Mrs. Hamdan was hospitalized for three days and was unable to work or care for her family. “I was very happy when I heard about this program. MFW quickly responded to my claim and I received my benefit just three days after lodging it. This kind of insurance really gives you peace of mind,” Mrs. Hamdan said, adding that the benefit helped her recoup the losses she sustained from having to close her business.

CareGiver is being provided in conjunction with Zurich Financial Services and Al Manara Insurance. Brandon Mathews, Zurich’s Head of Microinsurance, says: “Planning for adverse events – saving rather than investing in their businesses – may put women at a further disadvantage. Insurance is what is used to plan for such events. If we can unlock more entrepreneurial investment by low-income women while protecting them and their families against some of life’s risks, we’ll see a multiplier effect that’ll make a difference.”

Insurance is increasingly being recognized as a powerful tool in addressing poverty eradication. CareGiver is the second insurance product offered by MFW. All MFW clients are protected by the Himaya Life Insurance scheme, which offers coverage for death and full or partial disability. Unlike most life insurance schemes offered by microfinance institutions, Himaya also covers the life of the borrower’s spouse.

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