Voluntary Affiliation to Micro Health Insurance and Social Capital Among Resource-Poor Persons: Initial Evidence from India

Abstract

Based on data from a 2005 household survey in four locations in India, we examine whether there is an association between insurance status and several indicators of social capital, and whether this association is a general phenomenon or, rather, dependent on attributes of the community or of the local Micro Insurance Unit (MIU). This is done by looking at preferences of respondents to seek borrowing and advice from formal versus informal sources, levels of trust towards community members versus outsiders, and the factors influencing respondents’ decision to affiliate voluntarily to an MIU or not.

Keywords: microinsurance, social capitaI, MIU, India

JEL Classification: D10, D20, G22, I19, O17