Do Spouses Make Claims? Empowerment and Microfinance in India
This paper studies an MFI in India that requires borrowers and their spouses to purchase health insurance when they take a loan. It analyzes the claims behaviour of borrowers and their spouses, and of men and women, attempting to understand how microfinance, gender and health insurance interact.
Borrowers and their spouses receive the same coverage and pay the same premium in the program, regardless of their age, gender or medical histories. The paper attributes any difference in claim behaviour to differences in underlying morbidity or differences in health-seeking behaviour. Findings include:
- Borrowers are twice as likely to file claims as their spouses;
- Wives of male borrowers are less likely to file claims than husbands of female borrowers;
- Differences in the probability of filing claims stem from geographical variations in female literacy rates;
- Wives of male borrowers are disempowered.
Study results suggest that improving female literacy can reduce gender differences in the utilization of health insurance. The paper adds to growing evidence that empowering women through education can improve their health outcomes.
