Frequently asked questions about IMA-APPA FAMILY SECURITY scheme:
Before we discuss about the APPA-IMA family security scheme, every IMA member should analyze as ---are they in need of life insurance cover?

If so, are they covered already sufficiently by any insurance company?

If not , read the following matter carefully and decide yourself and/or discuss with your financial consultant and take the good decision that will secure your family in need.

Why we need insurance at all?
Note: every body needs insurance cover for the sake of their dependents. We, doctors taking so many loans for establishing our practices and for house and vehicles which may cost us around 30 to 40 lacs on average.

Suppose, Every average doctor may practice 30 years and earn on average net 5lacs per anum .
so, the value of doctors earnings in his life time comes to 1.5 crores. When We are taking into account of our safe saving instruments, which may yield us about 3 to 4 crores in the span of 30 years.

So, An average doctor’s value in terms of currency is about 5 crores.

BUT when any unfortunate incident happens, what about the position of that doctors family?

That’s why we, doctors need heavy insurance coverage.

1.why it is named after DR.N.APPARAO? is it not belong to state IMA?
This family security scheme is the brain child of our national IMA coordinator DR.N.APPA RAO, whose service to our IMA can’t be ignored and it is his constructive plan to SECURE the demised member’s family .so, don’t misunderstand this scheme and it is as much like our previous family benefit scheme.

2. HOW CAN ANY BODY PAY THE FRATERNITY LIFELONG? IT MAY NOT POSSIBLE FOR SOME DOCTORS, AS THE PRACTICE MAY NOT BE LIKE TODAY!
We are paying the premiums for our vehicles, household items, etc .every year to protect them from any thefts & accidents.
When ever we cease to pay these premiums, from that day onwards these items doesn’t get covered by insurance.
If you think, that if you can’t pay the fraternity premiums in this APPA-FSS scheme, drop from this scheme on that day.
Its like term insurance policy, where you get covered only up to you pay the premiums annually, Otherwise that cover is terminated.
You know, in this type of term insurance policies, otherwise called as pure risk coverage policies, we didn’t get the paid-up cumulative amount. It’s just like vehicle insurance.
if our vehicle met with any accident, we will get the compensation.
Otherwise no amount will return to us.
So, please think this APPA policy in the line of term insurance policy. Whenever you feel, its unnecessary or burdensome to you , you can opt out from this scheme.

3.IF WE OPT OUT FROM THIS SCHEME WHAT AMOUNT WE GET AT THAT TIME?
NO AMOUNT WILL BE GIVEN , because you all know thia appa –FSS scheme is as like as any term insurance policies of ICICI/HDFC/LIC!

4.THEN WHY CANT WE PREFER LIC/OR OTHER WELL REPUTED COMPANIES THAN THIS APPA –FSS SCHEME OF IMA?
Definitely you have that option. but, before we take ANY DECISSION, WE HAVE to consider all parameters. For your information we are giving this » table for comparative study.(please see the below table)

5.The scheme collecting the entry fees depend upon the age . Where it is deposited and how much interest is procuring annually? And how this cumulative interest amount / or corpus fund is secured? What are the precautions the scheme management has taken to prevent any fraud?
The collected amount, we called as corpus fund which is deposited in the reserve bank bonds which are yielding 6 % interest.
The accrued annual interest will be deposited in secured govt.bonds. and we have to use it for charity purposes. Its our state IMA motto to serve the society and poor patients.

The scheme management will also invite the suggestions from our scheme members and act accordingly after discussing pros and cons in the management & executive council body meets.

ALL financial clarifications, annual audited reports will be presented at annual council meeting of the scheme and the same will be send to the scheme members.

What is the guarantee for this scheme? Now its running well. But after some time is it possible to maintain this scheme and are you going to give any bond of guaranteed insurance cover of Rs.15 lacs?

We have to believe in our selves. Otherwise no scheme or policy runs for very long. We believe the LIC or ICICI because of their track record.
Just like that, we have to believe our IMA as its record is very much clean. For example, -----We are running the family benefit scheme since 1989.
for the durability of this scheme, we invite suggestions from our scheme members. We definitely implement those measures which will benefit our IMA fraternity.
you experienced the family benefit scheme. This appa –FSS scheme is also is just like that.
The demised family will get the fraternity contribution depends upon the membership( as on that day.) strength * 300/- .

AT THE OUTSET WHAT WE ARE TRYING TO EXPLAIN IS, THAT THIS APPA –FSS SCHEME IS AN ALTERNATIVE TO PUBLIC (LIC)/ PRIVATE (ICICI/HDFC) TERM INSURANCE POLICIES. Simultaneously, our scheme’s inherent motto is welfare of our members and welfare of the society.

Some may ask, why the management didn’t give the total
Collected fraternity fund to the nominees (more than 15 lacs)?

Every one knows, that any financial management scheme will operate and execute on some stipulations written in its constitution. You know, that all public/ private insurance companies are doing like this. Once they fixed the “assured amount & premium” they don’t increase the assured amount even after increasing their policy holders with out any restrictions. The same thing is applicable to our scheme.
These rules are for the sake of that scheme and its members.
The money collected from members as fraternity contribution, will be disbursed to nominees and if there is any extra amount, that will be deposited in the corpus fund. It’s only for the betterment of scheme’s financial health. No body will take that extra amount to their own causes. It’s deposited as reserve fund.
The scheme’ main aim is not only welfare of the members but also service to the common man.
Appa FSS scheme has to start to sponsor medical camps, CME programs and scholarships to poor students of doctors, etc.. which will rise the image of IMA in the psyche of common public.
The scheme already proclaimed this point in its constitution.

Every paisa of this scheme will be audited and the audited accounts will be submitted to FSS COUNCIL & general body of the scheme and to the state IMA.

EXPRESSION OF DOUBTS over the scheme are most common as like in any other democratic concept. But criticizing without understanding the financial scheme regulations results in despair.
Sticking to the constitution should be the sole and whole strength of this scheme.
In that way only, any scheme will be sustained..

Any suggestions that promote the health of the scheme can be discussed in the management committee meetings and may be implemented after discussing its merits.

· The fraternity benefit of the deceased member shall be calculated on the basis of Rs.300/- from each of the members of the scheme present in the register on the first day of the month in which death occurs, but not more than Rs. 15lacs.

· The total payment to a deceased member’s nominee shall not exceed Rs. 1500000-00. ( maximum 15lacks only)The money collected over and above that, if any, will be kept in the corpus fund..
· Some may ask, why should enroll more members than 5000?
· Some ask, why you reduced the entry age ?
· Some expresses doubts, is it possible to give 15 lacks for every deceased member’s family?
→→ For better & durable management of the scheme, we are enrolling the members more than 5000.
its for the cushioning of the scheme finances.
As you all know, the membership gradually reduced due to deaths, bad standing of members, middle drops,etc….
The scheme encourages the extra membership, to maintain the figure at the minimum of 5000.
The scheme’s main aim is to give 15 lacs to deceased member’s family.
· Remember, the management strives hard to keep every act of the scheme as transparent and tried to bridge all communication gaps at minimum.
· The scheme is for the welfare of members, maintained carefully by the state IMA with professional attitude.
· As you all know, that any scheme involving in long term financial management has to follow certain norms to satiate income tax, other govt. Regulations in view of the durability of the scheme.
· The scheme has to utilize the accrued annual interest for welfare schemes only.
· Every step of the scheme is for the welfare of its members, but it has to maintain good social charity work .
· Corpus fund never be touched for running of the scheme or for payment of the fraternity
· The scheme will send the bills every June & December. So, if any death occurs immediately after the bill disbursal, the processing and disbursal of amount will be late by 6months to 9 months. Infact, only 60% of the scheme members are paying promptly. The remaining are responding lately after one or two reminders.
· Usually, the drop outs are more than deaths. So we have to maintain the figure of minimum 5000.
· Our scheme office is changed to ground floor of the IMA building and interior is renovated and we are digitizing the data and records. Better Communication and prompt bill dispersal and establishing call center to respond to queries – are our next step to deliver the best services to our members. this is the cause for delay in bill dispatch.

One request to all the scheme members –
Please trust the scheme management and cooperate by prompt payment of fraternity bills.
Please understand the teething troubles of the scheme , which will be rectified in due course of time.
Please remember - “The scheme is for the doctors, of the doctors and by the doctors".