Michael Kelvin Junos is the
in-house Actuary of the biggest Micro-MBA in the country, the CARD MBAI. When I
get the chance, I would ask Kevin a lot of questions because the growth and
success of the CARD empire, including its MBA, is truly nothing short of
impressive, and I love hearing about it.
Please read on as I drill out
some information about the CARD MBAI from Kelvin. With this, we may better
understand how CARD MBAI has attracted and retained more than a million
members, most of which are womenfolk.
Sit back, read on, and be
inspired.
AN INTERVIEW WITH KELVIN JUNOS OF CARD MBAI – THE BIGGEST MICRO-MBA IN
THE PHILIPPINES
Maqr:
Hi Kelvin! May I ask you some questions, so we can share some information about
CARD MBA?
Kelvin: Sure, Ms. Jeng.
Maqr:
First, please tell me how long you have been working with CARD MBA and what
your responsibilities are to the association.
Kelvin: I’ve been with CARD
MBA for more than three (3) years now. My primary responsibility is to take
lead in product development. We at CARD never cease to explore different
possibilities and options to provide better access to insurance programs and
services for the marginalized sector. I also facilitate initial computations
for the valuation of reserves for the association. That’s initial computations
only since I am not yet a fellow of ASP or SOA and cannot sign the valuation..
but soon, I will do the signing. I am also involved in projects involving
process enhancement to ensure effectiveness and efficiency of delivering the services
to the members. Build-Operate-And-Transfer (BOAT) Program, which aims to assist
other organized groups put up their own MBA, is also anchored on me.
Maqr:
Wow, that’s a whole load of responsibilities. Does your family still know you?
Kelvin: (laughs) I’m single
anyway. And my parents, and most of my siblings have already ,migrated. So I’m
free to spend my time doing stuff for CARD.
Maqr:
Your family has migrated? How come you’re still here? Are you not enticed to
follow?
Kelvin: Well…..not….yet. I
like what I’m doing for CARD. It feels good being with the less privileged and
knowing that you’re doing something to help them. They personally do not know
me, but I know that with these small works that I do, I am making impact to the
lives of about 3 million Filipino families. That sense of fulfillment is
priceless. I miss being with my family, but I can pay them a visit anyway.
Maqr:
That sounds really nice. Tell me more about CARD MBA and what makes you stick
it out here.
Kelvin: It actually started
as, somehow, an informal insurance program called Member’s Mutual Fund (MMF)
which was housed in our mother institution, CARD Inc., whose nature is
providing microfinance services to its members. With a minimal amount of
contribution, the members are entitled to receive death benefit, loan
protection and even pension after the member’s retirement age. After sometime, the
management realized that the programs under MMF, due to lack of assessments
made, will not be sustainable and may not be able to pay for the promised
benefits to the members. This has to be addressed or else the facility’s fund
might get depleted. It was then that the management engaged the services of an
actuary to properly assess the program and develop new and sustainable schemes
that would deliver similar services for the members.
It was then on September 9,
1999, that CARD MBA was officially established to manage the MMF. Accumulated
funds under MMF was turned-over to CARD MBA which is owned and managed by the
members. We in CARD believe that providing the marginalized sector access to
insurance is good, but not enough. It would be best giving them the ownership.
Maqr:
Please describe the basic life insurance of CARD MBA.
Kelvin: CARD MBA members pay
a weekly contribution of Php15.00. In exchange, the members get insurance
coverage against Natural Death, Accidental Death, Total and Permanent
Disability, and Hospitalization due to Motor Vehicular Accident. The best part
of it, the program is a Family Package! It is not just the member, but her
family (legal dependents) gets insurance coverage as well.
Moreover, based on our
approved plan, upon termination of membership, the member will get her Equity
Value which is equivalent to half of all her total contributions made to the
association, with interest if the length of membership is at least three (3)
years at point of termination or 35% of all her total contributions made plus
interest, if less than three (3) years.
Maqr:
How much are these insurance coverages? Can you give me an idea on the amount
of benefits you give your members?
Kelvin: The benefits are
tiered depending on the length of membership. When a member diligently pays her
contributions for at least three (3) years, we give the maximum amount of
benefits – for example, death caused by sickness provides for Php50,000 benefit.
If death is caused by accident, the Association pays Php100,000 benefit. Dependents’
death have a maximum benefit amount of Php10,000.
The Basic Life Insurance
Program of CARD MBA also has Motor Vehicular Accident Hospitalization (MVAH)
Benefit. The member and her legal spouse are entitled to reimbursement of
hospitalization expenses related to a Vehicular Accident. The maximum amount is
Php10,000 per couple for the entire duration of membership.
Maqr:
Aside from the basic life insurance, what are the other optional insurance
plans available to CARD MBA members?
Kelvin: We have quite a
number of other plans.
First, we have the Retirement
Savings Fund which is funded by a mandatory weekly amount of Php5.00 by each
member. The total contributions are given back to the member, of course with
interest, upon termination of her membership, along with the Equity Value.
Next, we have the Credit Life
Insurance Program which will pay for the Member’s loan to affiliated financing
institutions, in case she dies. The amount of benefit is equivalent to the
principal amount of loan. After settlement with the financing institution, the
balance of the benefit is given to the beneficiary/ies.
We also have the Golden Life
Insurance Program which is for members who have been with CARD MBA for at least
five years but have reached age 70 (exit age for the Basic Life Insurance Plan)
and would like to have continued insurance coverage. Under this plan or program,
the Member will pay a fixed amount of premium for 10 years for continuance of her
insurance coverage until age 100.
Maqr:
Are there any other benefits to being a CARD MBA member?
Kelvin: We noticed that
majority of our members have partners in life but have not received the
sacrament of marriage. We arrange mass weddings so they can have the benefits
of being a legal dependent under CARD MBA’s Basic Life Insurance Program and
have the proper legal documents to show it.
In case of calamities such as
typhoon, floods, earthquakes, we have the CARD MRI Disaster Relief Assistance
Program (CDRAP) which provides relief goods to members who are badly affected.
Maqr:
I’m sure many will be interested to join CARD MBA. How can a person become a
member of CARD MBA?
Kelvin: The entry point
actually is to become a member of any of the CARD MRI’s Financing Institutions
like CARD Inc., CARD Bank, CARD SME or Rizal Bank. As part of the institutional
relationship within CARD MRI, they become automatic members of CARD MBA.
Maqr:
Is there another way to become a CARD MBA member?
Kelvin: We have this
“Build-Operate-And-Transfer” (BOAT) Program. This is aimed to assist organized
groups who are interested in putting up their own Mutual Benefit Association
(MBA). As the name of the program implies, it is designed to transfer the
technology of running an MBA by teaching them how to operate and manage their
own microinsurance scheme. If a group is eligible for the BOAT program, we
accept them as a BOAT Partner with a three-year engagement period. While under
the engagement period, their members become members of CARD MBA and shall enjoy
the same benefits mentioned earlier. Eventually, when it is big enough, can comply
with the requirements of IC for accreditation as an MBA and is confident in
putting up their own MBA, then we let it become its own association. We assist
them in registration and obtaining license with the Insurance Commission.
Maqr:
That sounds so easy! What is the hitch?
Kelvin: (laughs) There’s no
hitch. We just like to help other groups. There are no trade secrets here.
Anyway, we are in the common goal of eradicating poverty so let’s make that
vision infectious and contagious.
Maqr:
That’s really nice. Well, I hope that I can help spread the word of this
assistance that you are providing our Filipino community. Thank you, Kelvin.
More power to CARD MBA!
Kelvin: You’re welcome, Ms. Jeng! And should there be other questions, please look for our website, www.cardmba.com, or email us at cardmba9999@cardbankph.com.
Photo lifted on Twitter of Mr. Kelvin