Arohan Financial Services Limited | Annual Report 2021-22

Arohan offers life and health insurance products that are issued and underwritten by certain Insurance Companies with whom the Company has entered into tie-ups. Group Term Life Insurance: In the unfortunate event of death of the policy holder, the insurance allows the nominee to obtain a sum insured under the policy minus any amount outstanding under the loan agreement. This ensures that the nominee is not burdened with the fulfilment of the loan amount and is thus, mandatory for Arohan’s customers to obtain insurance coverage on the loan amount. General Insurance: Under these policies, Arohan’s customers are entitled to receive hospital cash benefit, in the form of cash compensation against wage loss for each continuous and completed period of 24 hours of hospitalisation at any registered hospital due to the unforeseen incident of critical illness, sickness, or accidental injury, for a maximum of 30 days per annum. In the event of accidental death, the nominee receives an additional amount of INR 100,000. Arohan also offers COVID-19 insurance coverage to its customers in order to protect them from income loss due to COVID-19. This policy offers a flat cash benefit of INR 25,000 (base policy) for a positive COVID-19 diagnosis. Dwelling Insurance: Arohan introduced a new insurance product - Dwelling Insurance Cover inpartnershipwithan InsuranceCompany. This insurance provides protection to ‘Kutcha’ and ‘Pucca’ houses against several types of natural calamities and damages. The coverage is valid for two years up to a Sum Assured of INR 1 Lakh. This product comes in combination with a health insurance product that provides a daily benefit of INR 500 upon hospitalization for our customers, up to a duration of two years. Nat Cat Insurance: Under the aegis of the Microfinance Institutions Network, the Self- RegulatoryOrganization,Arohanhasintroduced for its customers theNatural Calamity (NatCat) Insurancewhich seeks toprotect theborrowers against natural catastrophe events, preventing them from slipping into delinquency. Inorder tomakeutilityandday-to-dayproducts of good quality for its customers, Arohan also offers a range of utility products at affordable costs. These products may also be financed by Arohan through secondary loans for eligible customers. Current products available under the non-financial category include, but are not limited to solar lamps, home and kitchen appliances, electronics, consumer durables, and bicycles, made available in association with various third party vendors. The products offered to customers are those that provide value to the customer’s life or livelihood, livelihood, enhancing her and her family’s quality of life in the process. Cross Selling Process Arohan’s Cross Sell business model allows the Company to increase touchpoints with its customers while also help its customers improve their standard of living. Arohan believes that this not only generates additional sources of income for the Company but also diversifies its operational risk by providing new revenue streams. Arohan uses the scheduled meeting slots of its Customer Service Representatives with its customers to also talk about and highlight new products. Arohan’s customers have been found to have requirements for both, financial inclusion products as well as non-financial products including household appliances. To this effect, Arohan believes that increasing its customers’ access to a range of products both, both financial and non-financial helps improve credit relationship, engagement and overall experience with its customers. Under the Financial products, on-boarding customers (and/or their co-borrowers) onto insurancepolicies isdonebycollectingpremium in cashless mode via deduction from primary loan disbursement amount. In addition to the claims being handled by the Insurance Firms, a Certificate of Insurance (CoI) is provided to every customer on-boarded to a policy. This is enabled via a Direct SMS with compressed URL of CoI from the Partner to the customer. Further, Arohan supports the nominees of 55 Annual Report | 2021-2022 Management Discussion & Analysis