Volume-13, Issue-1 (January-June)
2026
Pages: 139-146
Open Access
DOI: https://doi.org/10.5281/zenodo.19708837
A STUDY ON EVALUATING THE EFFECTIVENESS OF UPI-ENABLED FAIR PRICE SHOPS IN PROMOTING DIGITAL FINANCIAL INCLUSION IN TAMIL NADU
Mithuna R & J Ayisha Siddeeka
India
Abstract
1. ABSTRACT
Financial vulnerability among low-income communities in developing economies like India remains a persistent challenge, making access to insurance a critical necessity rather than a luxury. This study investigates the role of Self-Help Groups (SHGs) and Microfinance Institutions (MFIs) in promoting microinsurance awareness, adoption, and utilization among
low-income communities in Coimbatore district, Tamil Nadu. Using a descriptive and analytical research design, primary data were collected from 150 respondents comprising 82 SHG members, 52 MFI clients, and 16 SHG leaders or MFI field officers through structured questionnaires. Stratified random sampling was employed across rural, semi-urban, and urban
strata of the district. Statistical tools including percentage analysis, mean and standard deviation, Chi-Square tests, and One-Way ANOVA were applied using SPSS software. The findings reveal that SHG meetings and MFI field officers are the primary sources of microinsurance information for 66.7% of respondents, confirming the indispensable intermediary role of these institutions. Despite this outreach, overall microinsurance enrollment stands at only 44.0%, with premium unaffordability (36.0%), limited awareness
depth (19.3%), complex claim procedures (15.3%), and distrust of insurance companies (15.3%) identified as the primary barriers. Respondents across all demographic categories strongly agree that SHGs and MFIs are effective delivery channels for microinsurance (Mean = 2.02). However, statistical tests confirmed no significant differences in perception or enrollment rates across educational levels, geographic areas, or discussion frequency, suggesting that barriers to adoption are systemic rather than demographic. The study
concludes that while SHGs and MFIs are playing a positive intermediary role, sustained policy support, product affordability reforms, procedural simplification, and institutional capacity building are essential to achieve comprehensive microinsurance coverage among low-income communities in Coimbatore district.
Keywords: Microinsurance, Self-Help Groups (SHGs), Microfinance Institutions (MFIs), Financial Inclusion, Coimbatore District, Low-Income Communities
Financial vulnerability among low-income communities in developing economies like India remains a persistent challenge, making access to insurance a critical necessity rather than a luxury. This study investigates the role of Self-Help Groups (SHGs) and Microfinance Institutions (MFIs) in promoting microinsurance awareness, adoption, and utilization among
low-income communities in Coimbatore district, Tamil Nadu. Using a descriptive and analytical research design, primary data were collected from 150 respondents comprising 82 SHG members, 52 MFI clients, and 16 SHG leaders or MFI field officers through structured questionnaires. Stratified random sampling was employed across rural, semi-urban, and urban
strata of the district. Statistical tools including percentage analysis, mean and standard deviation, Chi-Square tests, and One-Way ANOVA were applied using SPSS software. The findings reveal that SHG meetings and MFI field officers are the primary sources of microinsurance information for 66.7% of respondents, confirming the indispensable intermediary role of these institutions. Despite this outreach, overall microinsurance enrollment stands at only 44.0%, with premium unaffordability (36.0%), limited awareness
depth (19.3%), complex claim procedures (15.3%), and distrust of insurance companies (15.3%) identified as the primary barriers. Respondents across all demographic categories strongly agree that SHGs and MFIs are effective delivery channels for microinsurance (Mean = 2.02). However, statistical tests confirmed no significant differences in perception or enrollment rates across educational levels, geographic areas, or discussion frequency, suggesting that barriers to adoption are systemic rather than demographic. The study
concludes that while SHGs and MFIs are playing a positive intermediary role, sustained policy support, product affordability reforms, procedural simplification, and institutional capacity building are essential to achieve comprehensive microinsurance coverage among low-income communities in Coimbatore district.
Keywords: Microinsurance, Self-Help Groups (SHGs), Microfinance Institutions (MFIs), Financial Inclusion, Coimbatore District, Low-Income Communities