Extending mutual microinsurance to 5 million uninsured households in five countries over five years.

Organising the unorganised sector: how the DHAN Foundation has lifted 500,000 households out of poverty (India)

A large majority of Indian workers are employed in the unorganised sector, and with little income security this makes them very vulnerable to the everyday risks they face.

The DHAN Foundation, a pioneering Indian development institution, works by organising poor community groups into self-help groups (Kalanjiams) to build social capital. The DHAN Foundation's Kalanjiam Community Banking Programme has been running since 1990 and now reaches over 1.7 million poor households across 14 states in India.

The DHAN Foundation formed People Mutuals in 2003 to enable low-income households to access microinsurance through their self-help group or Kalanjiam, thus providing a vital safety net for these communities to prevent them from falling into poverty when faced with unexpected risks.

In this 8-minute video produced by the DHAN Foundation, Mr M P Vasimalai, Executive Director, proudly declares that of the 1.7 million low-income households reached by the DHAN Foundation, 500,000 have declared themselves as no longer being in poverty.

Through the ICMIF 5-5-5 Mutual Microinsurance Strategy, the DHAN Foundation is aiming to reach an additional 1 million previously uninsured low-income lives with health or life microinsurance in five years. Since the project launched in March 2017, the Foundation has already reached over 300,000 low-income lives.

This project is being supported by 19 ICMIF members either through Financial or Technical Assistance.