Aris Alip CARD MBA Presentation to Canada 2

CARD Vision Statement for the New Millennium: 

CARD Vision Statement for the New Millennium CARD is a group of mutually reinforcing institutions, that is dedicated to ultimately empower the poor, by upholding the core values of competence, culture of excellence, family spirit, stewardship and simplicity.

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CARD MRI CARD NGO MICRO- FINANCE CARD BANK CARD MBA CARD TRAINING INSTITUTE CARD HOUSING COMPANY CARD MARKETING

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CENTER FOR AGRICULTURE AND RURAL DEVELOPMENT MUTUAL BENEFIT ASSOCIATION, INC. (CARD MBA) “ TODO-TODONG BENEPISYO AT PAGLAKI NG PONDO AY KAYANG-KAYA KUNG TAYO AY SAMA-SAMA ”

CARD-MBA MISSION STATEMENT: 

CARD-MBA MISSION STATEMENT CARD-MBA is a mutual benefit association formed to promote the welfare of marginalized women; to extend financial assistance to its members in the form of death benefits, medical subsidy, pension and loan redemption package; and to actively involve the members in the direct management of the association including formulation and implementation of policies and procedures geared towards sustainability and improved services.

BRIEF HISTORY: 

BRIEF HISTORY Member’s Mutual Fund established on April, 1994 to serve as an insurance fund in providing financial assistance for burial expenses of members and their legal dependents and loan redemption in the event of member-borrower’s death. December 1996, MMF included a pension plan for older members incapacitated by old age, and an emergency medical assistance in the event of serious illness or injury. MEMBERSHIP Started with more or less 3,000 members.

TRANSFORMATION OF MMF TO MBA: 

TRANSFORMATION OF MMF TO MBA September 9, 1999 the management of MMF was turned over to the members and was registered with the Security and Exchange Commission (SEC) on October 29, 1999 as CARD MBA. August, 2000 CARD MBA was registered with the Office of the Insurance Commission and was given a license only on May 22, 2001. MEMBERSHIP Started with 26,352 members. This has increased to 116,970 by August 2003.  

PRODUCTS and SERVICES: 

PRODUCTS and SERVICES Life Insurance w/ Total & Permanent Disability Cover 2. Provident/Retirement Savings Fund 3. All Loans Insurance Package    **Other Services** 1. Initiating Markets Social Services (Mass Wedding) Skills Training

CONTRIBUTIONS: 

CONTRIBUTIONS

LIFE INSURANCE PROGRAM: 

LIFE INSURANCE PROGRAM The Life Insurance program pays the following benefits to active members as follows:

Table of Monthly Benefits for Total and Permanent Disability: 

Table of Monthly Benefits for Total and Permanent Disability

PROVIDENT FUND : 

PROVIDENT FUND It is an administered fund intended for the retirement of members that can be availed of in lump sum at age 65. Active member pays a weekly contribution of Php5.00 (Cdn$.125) until she reaches the age of 65.

Sample Computation of Benefits at Age 65(Assuming the investment income is at 8.00 % per annum): 

Sample Computation of Benefits at Age 65 (Assuming the investment income is at 8.00 % per annum)

ALL LOANS INSURANCE PACKAGE: 

ALL LOANS INSURANCE PACKAGE It is a new scheme of Loan Redemption Fund where it pays the total amount of loan per Promissory Note upon death of a member –borrower

REFUND OF CONTRIBUTION: 

REFUND OF CONTRIBUTION Upon resignation before the age 65 after three (3) years of continuous membership, the member is entitled to fifty (50) percent refund of all the contributions made for Life Insurance less claims availed of and 100 % of all contributions made for Provident Fund plus regular savings interest.

MARKETING ASSISTANCE PROGRAM: 

MARKETING ASSISTANCE PROGRAM Marketing Assistance Program was established to help the members of CARD MBA to look for buyers of their products trying to lessen the intervention of middlemen in the marketing of their products. MASS WEDDING Mass Wedding is an additional service being offered to the members who have live-in partners and have been members of the Association for at least 10 months prior to the wedding celebration.

IMPACT TO MEMBERS/COMMUNITY: 

Surveys showed that the products and services of CARD MBA have been rated as number one in terms of clients’ satisfaction.   CARD MBA has been able to meet a specific demand of client-members for insurance in case of death to cover burial expenses, to repay the loan in case of death of a member-borrower, and provident fund or retirement savings for old age.    IMPACT TO MEMBERS/COMMUNITY

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More poor families joined CARD Program. Empowering the poor and better governance since they owned MBA. Steady source of fund for CARD

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Meanwhile, health insurance and educational assistance are the two demands that are still unmet but actuarial studies are already underway to determine their feasibility. 

CONCLUSION: 

“The products of the CARD MBA are innovative in that they meet the demand for micro-insurance of poor households in relatively large numbers. It is focused on helping poor families cope with risk factors associated with death, total and permanent disability and old age. The Association’s experience shows that micro-insurance can be a viable undertaking provided there is a critical mass of clients and adequate resources that could meet pooled risks. Micro-insurance is relatively new to the Philippine micro-finance sector, and CARD MBA is a trail-blazer.” CONCLUSION