One of the significant barriers to knowledge sharing and reapplication of experience is the limited culture of information and knowledge documentation and sharing. Although relevant knowledge may exist in people’s minds, it cannot always be tapped or may exist in formats that hamper people’s ability to know it or find it. The foregoing underscores the need for decision makers, professionals, communities, and relevant project staff to be able to find, use and share knowledge on experiences of what works and the lessons learned. In light of the above, Garments Worker Health Insurance project will be disseminating their experiences in the planning, implementation and monitoring of Insurance program that can be considered as “Best Practices”. The process documentation will provide necessary information to project staff and the relevant stakeholders on the process for identifying, documenting and sharing knowledge on these experiences that can contribute to the acceleration and expansion Occupational and Workplace safety and security among workers, buyers and nation in a whole.

1. HEALTH INSURANCE FOR
GARMENT WORKERS
(AStudy on Bangladesh Perspective)
FIN 603 Financial Institutions and Markets
Program: MBA
Summer 2015
BRAC Business School
BRAC University

2. Group: 5
Group Members
SL ID Name
1 13264078 Shahriar Rawshon
2 13264069 Anik Mandal
3 13264006 Christer Andrews
4 13264026 Humayun Rashid
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3. Presentation Outline
• Theoretical Review
BACKGROUND AND JUSTIFICATION
OBJECTIVES
• Project activities
• Methods
• Overall Work plan and Schedule
• Project Beneficiaries and their Benefits
• Implementing Agent Management of Project
• Insurance Premium and Settlement
• Health Insurance Claims settlement process
• Coverage
• Cost Sharing
• Assumptions and Risks
PROJECT IMPLEMENTATION AND MANAGEMENT PLAN
PROJECT MONITORING AND EVALUATION
BUDGET
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4. INSURANCE
In general,
insurance is the
equitable transfer of
the risk of a loss,
from one entity to
another in exchange
for payment.
It is a form of risk
management
primarily used to
hedge against the
risk of a contingent,
uncertain loss.
It is true that there
are many NGO’s as
mentioned that are
coming to the
rescue as a project
basis initiative, but
what they need is a
self-sustained
system that will last
long as the basic
definition of the
insurance suggest.
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5. BACKGROUND
Occupational health and safety are insufficiently protected and managed in
RMG sector.
The loss of 1,248 lives in Rana Plaza collapse and fatal fire at
Tazreen Fashions made it clear that the Bangladesh Ready Made
Garment (RMG) sector had reached a crucial juncture.
Building a culture of Occupational Safety and Health and the skills
to implement it is a major challenge for the RMG sector.
Basically, two types of Beneficiaries groups. The groups are (A) direct
Beneficiaries group (B) indirect Beneficiaries group. Direct group such as
workers and insurance company and indirect group is Garment Company.
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6. Insurance Development Regulatory Authority (IDRA):
• IDRA can gives some service make some favorable policies which will be easy
to implementation every all parties such as easy procedures to connect workers,
successful plan, overall guideline etc.
BGMEA:
• BGMEA can provide various types of service such as
• (1) To run these projects initially some assistance it can be capital fund. Which
is very important a insurance company.
• (2) BGMEA can also provide a rule to the all garments company should have
health insurance. On the other hand provides benefit about health insurance.
Ministry of Health:
• This ministry can provide laws that all RMG factories must have health
insurance facilities because it will provide garments worker health services, any
primary and major diseases.
Assistance from the concerned
Government offices
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7. Methods
Methods that will be used for this project are mainly qualitative
Quantitative will be used for only willingness survey later on
Qualitative Data Collection
• Semi structure Interview
• Focused Group Discussion
• Case study
• Key Informant Interview
Area Covered:
• Gazipur and Savar
• Sample of 5 Garments
Total Beneficiaries
• Direct Beneficiary: Worker. Pilot Project (5000 approx.)
Willingness study also need to be done
Insurance Company:
• MetLife
Foreign Aid
• DFID
• USAID
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8. OBJECTIVES
• The overall objective of this project study is to understand and
analyze the current situation of the worker health condition and
health backup project for workers safety in the selected organization
and evaluate the effectiveness of health insurance interventions
there.
• The research outcome will then be used to improve the health
condition and the safety of the working condition through the health
insurance coverage.
• To explore and document the best practices and with their multiplier
effect and potentials of replications with Labor law.
Development objective
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9. OBJECTIVES
• To observe and evaluate the insurance program module and worker,
employer and regulatory bodies behavior, initiative and
implementation of successful insurance program to support worker
health condition.
• To assess the existing, understand the existing situation in and
around the garments and working condition in terms of health,
protection and others.
• To assess the current level of knowledge, attitude and behavior of
the caregivers and community people regarding healthcare and
health insurance of employee, employer and the regulatory body.
• To assess the status of worker of garments in different age group of
15-20, 20-30, 30-50 years in terms of development outcomes, health
care provide by government, NGOs and community.
• To find the uses of existing facilities and services in and around the
world and explore opportunity and scope for its enhancement
towards Garments owner including the importance and need of
safety of workers for growth, Brand, development and complaint
issue.
Immediate objectives
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10. Overall Work plan and Schedule
Key Activities Month
1 2 3 4 5 6 7 8
1. Contract signing
2. Communication between Garments Owner
and Regulatory Body
3. Finalize research design and development of
tools including a report
4. Finalization of the methodology and work
plan
5. Document collection (Related to HEALTH
INSURANCE)
6. Desk review
7. Prepare questionnaire and other data
collection tools
8. Training of field investigators
9. Data collection
10. Data analysis
11. Report writing
12. Draft Report sharing with Owner and
Regulatory Body
13. Incorporate feedback from Owner and
Regulatory Body and share it with worker
for feedback
14. Final Report submission
15. Final Document sharing workshop at
Individual stakeholder
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11. Project Beneficiaries and their Benefits
• Worker benefit:
• Primary health service/First aid
• Compensation for major accident
• Insurance company:
• Earning profit
• Increase company value
Direct Beneficiary
• Garment Owner
• Increase productivity
• Company image
• CSR
Indirect Beneficiary
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12. ImplementingAgent Management of Project
The key Role for the Garments Owner (GO) for the Project
• Garments pays significant amount to develop their productivity that’s why they pays.
• Making Awareness of Health Insurance to the Workers
• Providing Mutual Fund to regulate project
• Making the policy visible to the worker to make health safety and security
The key Role for the Regulatory Body (RB) for the Project
• Providing Administative and advisory support to run the project
• Providing support and giving a reglatory framework for this project
The key Role for the Insurance Company (IC) for the Project
• Insurance company gives direction to measure how much will be premium cost and what types
of service they will provide. Insurance company measure premium customer requirement if
customer’s requirement is high then premium cost will be high.
• A clear and easy process so that the worker can accept it.
The key Role for the Garments Worker (GW) for the Project
• Workers pays their premium need based. Workers want to know about their service and its cost.
Service includes are primary treatment cost, surgical operation, maternity etc.
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13. Insurance Premium and Settlement Process
We find according to different perspective with literature review that people are
willing to pay only in the range of Tk 20 to 60 per person per month.
Total cost will be recovered from foreign grants like from World Bank, different
NGOs, foreign buyers and manufacturers, other Regulatory Body like BGMEA,
BKMEA etc. be discussed upon and settled.
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14. Insurance Premium and Settlement
Process
Third Party Administrators (TPA)
• TPA is a middleman between Insurer and the Customer. Customer can directly deal with TPA
at the time of claim and TPA will help with all the process of claim settlement. A TPA is a
specialized health service provider rendering variety of services like networking with
hospitals, arranging for hospitalization and claim processing and settlement. The concept of
TPA has been introduced by the IRDA (Insurance Regulatory and Development Authority)
for the benefit of both the insured and the insurer.
Some of the services TPA provides are
• Maintain database of policyholders
• Issue of identity card to all policyholders
• Provide ambulance service
• Provide information to policyholders about hospitals.
• Check various investigations
• Provide Cashless service
• Process claims
There are 2 ways by which health insurance claims are settled:
• Cashless
• Reimbursement
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15. Cost Sharing
Sl. No Insurance Premium Low Risk
Medium
Risk
Medium
Risk
High
Risk
1 Worker 45% 70% 50% -
2 Owner 55% 30% 50% 100%
Installment 4 3 2 1
Primary health treatment in Garment industry
Para clinic services
Hospitalized workers
Coverage
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16. Coverage
Seria
l No.
Description Coverage percentage by each entities
Employer Employee Insurance
Company
1 Treatment of illness, disease (Natural Causes)
Any kind of illness or diseases (Except for
cancer & HIV aids)
0% 0% 100%
Any kind of Illness or diseases occurring
when the employee is on leave
0% 100% 0%
2 Treatment of illness, disease (Biohazard diseases)
You got infected while the handing a
deadly chemical substance but maintained
the required safety precautions during your
work.
50% 0% 50%
You got infected while the handing a
deadly chemical substance because you did
not maintain the required safety precautions
set by your employer.
5% 90% 5%
You got infected while the handing a
deadly chemical substance because you did
not have any choice as your company do
not maintain any standard safety
precautions.
100% 0% 0%
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17. Coverage
Seria
l No.
Description Coverage percentage by each entities
Employer Employee Insurance
Company
3 Physical Injury due to accidents
Physical Injury due to accidents within the
factory premises even after the required
safety precautions have been maintained.
50% 0% 50%
Physical Injury due to accidents within the
factory premises because you did not
maintain the required safety precautions set
by your employer.
5% 90% 5%
Physical Injury due to accidents within the
factory premises because you did not have
any choice as your company do not
maintain any standard safety precautions.
100% 0% 0%
Any kind of physical injury or accidents
outside the factory premises
0% 100% 0%
Any kind of physical injury or accidents
due to any form violent activities within or
outside factory premises.
40% 60% 0%
4 Medical, surgical, exploratory,
therapeutic, or emergency care
0% 0% 100%
5 Pregnancy and childbirth costs 0% 0% 100%
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18. Assumptions and Risks
Accessibility in the health. It is assumed that Ethical Clearance if needed will be
obtained by Garments Owner.
Employee safe guard policy that guides the work of the Organization. Informed
consent of the guardian is required for minors. This will be a major challenge and
it is assumed that support of concerned NGO will be available to facilitate this.
While overall timeline of the project period is 8 month, it is assumed that
wherever clearances are needed from Organization and Regulatory Body
(clearances of research protocol, tools etc.) will be done within a stipulated time
period, which will be agreed at the time of contracting, so as to enable completion
of the project deliverables within the overall time frame.
It is also assumed that all field clearances (NGO, local community, government, lodges
etc) and local authority clearance will be facilitated by Garments Owner through the
Insurance Company and local Authority.
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19. PROJECTMONITORINGANDEVALUATION
Sl No Critical Milestones MoV Responsibility
1 Contracting Contract in Place Management of the
Garments
2 Initial Meeting with Client
- expectations setting and
scope and Inception Report
Report with specific
agreements on scope and
timelines
Management of the
Garments and Regulatory
Body
3 Research Protocol Design of the evaluation
framework, tools, Sampling
Management of the
Garments
4 Client consensus Final approval Management of the
Garments
5 Training of teams Brief Training Report Management of the
Garments
6 Pilot test and pilot report Pilot report Management of the
Garments
7 Client feedback on Pilot
Report
Email clearance and feedback Management of the
Garments
8 Finalizing Research
Protocol
Based on pilot study and
feedback - finalized Research
Protocol
Management of the
Garments and Regulatory
Body
9 Data Collection Team in Place and Filled in
Data sheets
Management of the
Garments
10 Data Entry Data Sets Management of the
Garments
11 Data collation and analysis Graphs and tables Management of the
Garments
12 Power Point Presentation of
the findings and
recommendations to SCI
for feedback
PPT Management of the
Garments and Insurance
Company
13 Draft Report 1 Draft Report Management of the
Garments
14 Feedback of Client Written feedback of the draft
report
Insurance Company
15 Final Report Final report Management of the
Garments
16 Client Approval and sign
off
Through paperwork Insurance Company
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20. BUDGET
Other EXPENSES
Item Amount
Seminar activities 40000
Legal fees (BGMEA, others) 10000
Other professional fees 30000
Contracted services & Recruiting 30000
Equipment 120000
Utilities 40000
Office expense 80000
Telephone and fax 20000
Computer lease, repairs & maintenance 60000
Office Rent 150000
Total other Expense 580000
Total expenses (580000+592000) 1172000
Detailed Budget for initial period of 8 months
Expenses:
Direct cost only : 5,92,000
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49%
51%
Percentage of Distribution of Cost
Direct Cost
Other Cost

21. BUDGET
SL. Voluntary Source Amount
Support
1 Government grants 200000
2 Foundations 100000
3 Foreign Fund (USAID, DFID) 350000
4 NGOs 250000
5 Contributions from factory owners 200000
6 Investment income(Foreign buyers) 100000
Total Income 1200000
Cost Recovery:
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22. Thank You…