Insulating shocks

Family Background

Irulaayi is born in Rettaikulam in a middle-class family, she has one brother and three sisters. She is the first child and had got educated till fifth standard. At the age of 18, she got married with Mr.Rajendhiran. He worked in the Railway station as a waiter in a tea stall. After marriage, she was blessed with one daughter and two sons. Her daughter is studying B.COM final year, elder son is studying B.SC(IT) and her younger son is studying 6th standard. Her husband is a alcoholic and is severely addicted, and he got affected with health problem and succumbed to his health issues. She strongly believes her husband died because of his alcohol habits.

Being in Kalanjiam

In 2003, she joined as a member of Azhagumalaiyan Kalanjiam. Initially, she started with a savings of Rs.15per month, now it has got increased gradually to Rs.300. Her first loan is for Rs.500 that has gradually increased now to Rs.40,000/-. She has got Rs.40,000/- loan in her past five occasions (as then Rs.40,000/-is the maximum credit ceiling limit.

Her husband as a daily wage earner used to give Rs.100-200 daily. He used to keep Rs.200-300 on his ownfor his alcohol habits. As he gives money daily for meeting the household expenses, she used to manage her family with the meagre amount he gives. The other financial transactions were taken care by him. Her husband died six months before. She has been doing insurance health for family and life for herself and her husband since getting enrolled in the group. The insurance is done through the group insurance scheme by the federation for its members. The insurance is done with Life Insurance Corporation (LIC) of India by the federation. Hence the federation facilitated the claim settlement from LIC. She got a claim amount Rs.30,000/-. She used Rs. 10,000 of the insurance money for her daughter’s studies, another Rs.20,000 towards meeting the household expenses after the death of her husband and to repay a loan raised by her husband.

After her husband’s death, she went to work at idly shop being run by a member of the group in the bus terminal stand. Her daily income is Rs.150/- for the morning turn and Rs. 200/- for night work. To meet the educational expenses of her children the felt this income is not adequate. Hence In the evening, she start her own petty business of snacks making. She earns up to Rs.300/- per day through this activity. Now her daily income is Rs.550-600/- in a day.

The practice of having a insurance coverage as being educated in the Kalanjiam SHGs has come in handy when her husband passed away all of a sudden. The claim funds though modest in term of rupees has been very useful to pass over the tide after his death.