Project Nefscun at Nepal


Endowment policy

After many discussions with the members of the SACCOS, it became clear that it was virtually impossible for members to accept the idea of paying a premium for a life insurance without getting back the money at some point. In addition to this, we found out that the idea of saving money for a longer fixed period than possible in the SACCOS (a maximum of two years) was attractive to the members. For that reason, we developed a combination of insurance and saving: a so-called endowment insurance. Members get an endowment in case of death or at the end of the contractual period of ten years. In October 2009, the first policy was handed over to a member.

By the end of 2010, NEFSCUN sold 1400 policies and the product is widely appreciated. Initially, we expected only to sell policies for low covered amounts, but it turns out that about 30% of the members choose a higher amount, up to RS50.000 (€500).


Right now, we are struggling with two problems:

  • Developing a software program to handle the new product. We need to make it in the Nepali language using the Nepali calendar.
  • The introduction of the product in the next 100 SACCOS spread out all over the country. We planned to let the managers of the SACCOS do this, after a thorough training by NEFSCUN. In some SACCOS this has worked out well, but it turned out that quite a few SACCOS managers are asking for more training. It is not easy for them to answer every possible question from members who are interested in the product.

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