Introduction

Mifos X is a system that supports as organization/ entity as it moves beyond basic collections of payments. It enables a fluid mix of collections and payments benefits that gives the entity freedom to manage different revenue and cost streams.

It has a number of unique capabilities that it can offer in the management of the OpenIMIS project and other entities that work with it.

From the initial architecture that has been shared by the openIMIS developer committee, the Mifos X system offers the following capabilities;

§ Premium Collection & Accounting Capabilities

§ Notification management capabilities

§ Claims Payment Management Capabilities

§ Cash disbursement capabilities

§ Pool funds Management capabilities.

The most important measure of success for an Insurance company/payer is successful collection of premiums and payments to suppliers for services rendered. The flexible architecture of Mifos X allows various ways of measuring this progress.

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Account Rules

See the rules and policies that can be customized based on the products

1. Account Management

· Newly created account will remain in-active until its approved

· All Approved accounts are considered active Accounts

· Active accounts can be attached to multiple products (Products are Savings, Fixed deposit, loan, current)

· Active accounts can be debited or Credited (However rules can be customised based on the account type)

· Single account can be attached to Multiple dependents

· Disabled accounts cannot transact. Need to be enabled 1st

2. Collections & Payments

· All accounts within the same office can be treated as a pool account

· All accounts within a group can also be treated as a pool account

· You cannot debit or credit a pool account. Only individual accounts can be debited or credited

· Account number must be provided for all transactions

· Overdraws are allowed based on some set of rules which are pre-defined

3. Account Query

· for account status

· For account details

· For account balance

· statement of account

· last transaction/activity

· last activity

Insurance Accounting Entries

The following scenario and subsequent entries shows the accounting treatment for an insurance company.

In January 2020, the Kinoti family takes a medical insurance cover for a total KShs 1 million, shared by the five family members.

Maternity is capped at KShs 100,000, while optical capped at KShs 5,000 per instance but no dental.

The cover costs the family KShs 30,000

On 15 March 2020, their first born is admitted to hospital and discharged 5 days later, for an approved cost of KShs 79,650.

On July 4, they are blessed with a new baby, they are discharged on July 10 at a cost of KShs 125,753.

On October 23, Mr. Kinoti gets precription glasses at a total cost of KShs 7,500. He paid the excess immediately

In November, the second born gets dental work and braces at a cost of KShs 12,380.

They cancel the cover on 1 December 2020.

The following shows the accounting treatments for an insurance company.

		Account	Location	Amount	Amount
On inception of the cover
Dr		Insurance premium receivables	BS	30,000
	Cr	Insurance premium income	P&L		30,000

On payment of the insurance premium
Dr		Bank	BS	30,000
	Cr	Insurance premium receivables			30,000

On receipt of the first born's claim
Dr		Kinoti Family Shared Account	BS	79,650
	Cr	Gertrude Children's Hospital	BS		79,650

On approval of the first born's claim
Dr		Medical claim	P&L	79,650
	Dr	Kinoti Family Shared Account	BS		79,650

On payment of the first born's claim
Dr		Gertrude Children's Hospital	BS	79,650
	Cr	Bank	BS		79,650

On receipt of the fourth born's birth claim
Dr		Kinoti Family Shared Account	BS	123,753
	Cr	The Nairobi Hospital	BS		123,753

On approval of the fourth born's claim
Dr		Medical claim	P&L	100,000
	Cr	Kinoti Family Shared Account	BS		100,000

On receipt of the excess claim on fourth born
Dr		Bank	BS	23,753
	Cr	Kinoti Family Shared Account	BS		23,753

On payment of the fourth born's claim
Dr		Gertrude Children's Hospital	BS	123,753
	Cr	Bank	BS		123,753

On receipt of Mr. Kinoti's claim
Dr		Kinoti Family Shared Account	BS	5,000
	Cr	Kikuyu Eye Hospital	BS		5,000

On approval of Mr Kinoti's claim
Dr		Medical claim	P&L	5,000
	Cr	Kinoti Family Shared Account	BS		5,000

On approval of Mr Kinoti's claim
Dr		Kikuyu Eye Hospital	BS	5,000
	Cr	Bank	BS		5,000

(No entries for the dental work done on the second born)
Depending of the terms and conditions of the insurance cover, if the cover is time dependent, a refund for a month is due

Dr		Insurance premium income	P&L	2,500
	Cr	Insurance premium refundable	BS		2,500
A
On payment of refund
Dr		Insurance premium refundable	BS	2,500
	Cr	Bank	BS		2,500
Note. If the cover is not shared but everyone has their own limits or cover, then an individual’s accounts are created.
But the entries are largely the same.

Screenshots for the Mifos X Product Demo

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Figure 7: Account entries

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Dockerised version

GitHub - mobidevke/mifos-docker: Mifos X docker stack

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http://mifos.s1.openimis.org/community-app/#/

Challenges with Mifos

Mifos X is a system that was created with a deposit taking financial institutions in mind. As such, one of the challenges encountered is creating the grouping for the different consumers of medical covers. There are some limitations with the current implementation, as any client/

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group is set up to either be making deposits for either a savings or loan product. We shall only map the Scheme accounts and Payer accounts.

A second challenge is how the products exist in Mifos X. Normal insurance products usually expire annually without any carry over (other than refunds that or excesses that should be made good, but in either case, these can be handled off the within the actual accounting system). The medical insurance cover will be managed by OpenIMIS.

Mifos X is also not able to maintain information on the extent that beneficiaries have used their cover. This could cut across benefits limits for the various treatments offered ([Outpatient which can be split into general, dental, optical] and inpatient which can include maternity, surgeries]). OpenIMIS to manage this information and also the controls.

Integration
https://github.com/openMF/payment-hub

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Mifos vs MojaLoop – OpenIMIS Platform.
https://docs.mifos.org/user-manual/for-administrators-mifos-x-platform/initial-system-set-up
https://docs.mifos.org/user-manual/for-administrators-mifos-x-platform/accounting/accounts-linked-to-financial-activities
https://docs.mifos.org/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions

Mifos API Links

#	Category	Api Name	Description	Link
1	Account Management	Create Client	Creates an individual Account	https://demo.mifos.io/api-docs/apiLive.htm#clients
		Activate Client	Activates and account	https://demo.mifos.io/api-docs/apiLive.htm#clients_activate
		Close Client	De-activate an account	https://demo.mifos.io/api-docs/apiLive.htm#clients_close
		Reactivate Client	Re-activates a disabled account	https://demo.mifos.io/api-docs/apiLive.htm#clients_reactivate
		Client retrieve	Query account details	https://demo.mifos.io/api-docs/apiLive.htm#clients_retrieve
2	Account Transaction	Create a Savings	Create a account type (savings)	https://demo.mifos.io/api-docs/apiLive.htm#savingsaccounts_create
		Create a Fixed deposit	Create a account type (Fixed Deposit)	https://demo.mifos.io/api-docs/apiLive.htm#fdaccounts
		Retrieve savings	Query for account type	https://demo.mifos.io/api-docs/apiLive.htm#savingsaccounts_retrieve
		Withdrawal	Withdraw money from account	https://demo.mifos.io/api-docs/apiLive.htm#savingsaccounts_withdrawal
		Deposit	deposit money into an account	https://demo.mifos.io/api-docs/apiLive.htm#savingsaccounts_deposit

The End Points

Client Management API

https://mifos.s1.openimis.org/api/v1/clients

Funds Deposit & Withdrawal

https://mifos.s1.openimis.org/api/v1/savingsaccounts

General Ledger Mgmt

https://mifos.s1.openimis.org/api/v1/glaccounts

Versions Compared

Old Version 1

New Version 2

Key

Introduction

Account Rules

1. Account Management

2. Collections & Payments

3. Account Query

Screenshots for the Mifos X Product Demo

Challenges with Mifos

Page Comparison

Versions Compared

Old Version 1

New Version 2

Key

Introduction

Account Rules

1. Account Management

2. Collections & Payments

3. Account Query

Screenshots for the Mifos X Product Demo

Challenges with Mifos