| By: |
Rajeev Ahuja (Indian Council for Research on International Economic Rela);
Johannes Jutting (Indian Council for Research on International Economic Rela) |
| Abstract: |
Community based micro insurance has aroused much interest and hope in meeting
health care challenges facing the poor. In this paper we explore how
institutional rigidities such as credit constraint impinge on demand for
health insurance and how insurance could potentially prevent poor households
from fallinginto poverty trap. In this setting, we argue that the appropriate
public intervention in generating demand for insurance is not to subsidise
premium but to remove these rigidities (easing credit constraint in the
present context). Thus from insurance perspective as well, our analysis
highlights the importance of having appropriate savings and borrowing
instruments for the poor. |
| Keywords: |
Micro-insurance, Micro-credit, Credit Constraint, Demand for Insurance |
| Date: |
2004–01 |
| URL: |
http://d.repec.org/n?u=RePEc:ind:icrier:118&r=mfd |