REPUBLIKA.CO.ID, JAKARTA - State owned banking company, PT Bank Rakyat Indonesia (BRI) offers insurances to a million micro entrepreneurs to maintain their qualities. There are 792,510 micro borrowers who join Personal Accident Insurance, Healthcare and Death Insurance.
Subsidiary of BRI, PT Asuransi Banyan Life, PT Asuransi BSAM and PT Chartis Insurance Indonesia will form a consortium that provides the insurance services. Corporate Secretary of BRI, Muhamad Ali in a writing statement said that amount of premium insurance rates is very affordable for micro enterpreneurs who are also debtors of Kupedes, an Indonesia's model small credit program worth 50 thousand IDR.
"If debtors are husband and wife, the tariff increase slightly to 90 thousand IDR for one year," Ali said on Wednesday.
Insurance scheme is very effective in maintaining micro credit quality of BRI. This insurance makes cash flow of micro borrowers are not bothered anymore as health care business' cost has paid by insurance company.
Ali explained four insurance benefits. First, customers will get daily allowance of 100 thousand IDR. They also get replacement of surgery cost of 2.5 million IDR, accidental death insurance of 500 thousand IDR, and accidental death (normal condition) insurance of 2.5 million IDR.
To develop its micro business, BRI also managed to attract more small business entrepreneurs as efforts to increase financial inclusion in Indonesia. BRI's micro lending growth is high followed by its high credit quality about 0.48 percent.
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