Arohan Financial Services Limited | Annual Report 2022-23

• Dwelling Insurance: Arohan initiated the Dwelling Insurance Cover which provides protection to ‘Kuccha’ 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. 2. Non-Financial Products To its customers, Arohan offers a range of utility products from renowned brands at affordable costs. These products may also be financed by Arohan through secondary loans for eligible customers. Products offered tocustomers are those that provide value to the customer’s life or livelihood, enhancing her and her family’s quality of life in the process. Current products available under the non-financial category include, but are not limited to home and kitchen appliances, electronics, consumer durables, and bicycles. Additionally, Arohan has defined for itself various models of sourcing and delivering orders for Non- Financial products, dependent on individual Third-Party Business Partners: • StockistModel: Through thismodel, an agent of the Business Partner (“Stockist”) takes the responsibility of handing over the product to Arohan’s customers at the point of demand generation. • Last-Mile Delivery Model: Through this model, large consumer durables, and small home, and kitchen appliance orders are delivered directly to the customer’s doorstep at no extra charge. • Mela Model: Through this model, small home and kitchen appliance orders are delivered in bulk to an assigned spot, like a fair gathering, near relevant branches associated with the customers on an assigned date and time. Over the period of years, the ApnaBazaar platform has been made significantly more seamless and efficient with new features such as the auto-fetching of customer’s KYC documents and eSignature, the ease of the process of placing an order, the approving of eligible loan applications and the managing of orders with auto-authentication methods such as OTP-based delivery confirmation of Non-Financial products. The platform is getting further streamlined, asArohan is currentlydeploying end-to-end system-based policy validations, thus ensuring alignment of policies and processes between Primary and Secondary Loan Products. engagements with the customer and her family, in as much as they are found to have requirements for both, financial inclusion products as well as non-financial products under the Cross Sell portfolio. 1. Financial Products Under the Financial products, onboarding customers (and/or their co-borrowers) onto insurance policies is done in a fully paperless mode. Certificate of Insurance (CoI) in the form of SMS (with compressed URL of CoI) is provided to each customer on-boarded to a policy. Although any claim raised is handled by the associated Insurance Firm, Arohan supports the nominees of affected customer families by ensuring a smooth handover of the required information to enable the successful closure of claim cases. The process to raise claims via an IT-based Portal further ensures minimisation of information loss and reduced TAT on the processing of claims. Arohan’s suiteof financial Cross Sell products include Financial Safety Net Products. In order to ensure a financial safety net for its customers, 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. The financial safety net products are highlighted below: • Group Term Life Insurance: With insurance coverage of the loan amount of the customer, in the unfortunate event of the death of the policyholder, the insurance allows the nominee to obtain a sum insured under the policy minus the amount outstanding under the loan agreement at the time of death of insured. This ensures that the nominee is not burdenedwith the fulfilment of the outstanding loan amount. To safeguard the customer’s family in such an unfortunate event, it is 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 a 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 sickness, for a maximum of 30 days per annum in a non-ICU bed (or for a maximum of 20 days per annum in an ICU bed). In the event of accidental death, the nominee receives an additional amount of INR 100,000 / INR 200,000 and in the event of diagnosis of critical illness, the person receives an additional amount of INR 50,000. Management Discussion & Analysis Annual Report 2022-23 | 38