Insurance (Security Fund Activities)

Security Fund Activities (Insurance):

Life and resources are always uncertain. So it is essential to protect both life and resources from the risk of undetermined future. In order to reduce death related credit risk and provide other emergency support to the debtors, SSS has been implementing security fund activities since 1999. A group member automatically comes under the activities when he/she includes himself/herself to the main credit program.

Under the Security Fund Activities, the outstanding amount of the credit is exempted if either the borrower or the selected nominee dies. Tk. 5,000 is also provided for meeting the funeral rites expenses of the member or borrower. Under security fund, the borrower also gets healthcare support of Tk. 5,000 for four types of physical adversities like caesarean delivery, operation on gallbladder stone, hysterectomy and appendicitis. Apart from that, the borrower gets special financial support for other expenses like expensive treatment, education of children, wedding, house amendment, sudden death of family member etc.

Progress of Security Fund Activities:

During 2016-17, Tk. 28.81 crore has been recovered under the security fund activities. As on 30 June 2017, the outstanding amount of the security fund stands at Tk. 68.26 crore. SSS spent as much as Tk. 14.59 crore under the component.