By the Jalika team
Every welfare has members who fall behind. Some forget, some are going through hard times and a few stop paying until they need to claim. Clear rules, applied the same way every time, protect the members who pay faithfully without being harsh on those having a difficult month.
Decide what “in arrears” means
Start with a definition everyone can check: for example, “a member is in arrears when any monthly contribution or levy is unpaid [30] days after its due date.” Then set the stages that follow.
A simple four-stage approach
| Stage | When | What happens |
|---|---|---|
| Reminder | 1 month behind | Friendly SMS reminder, no penalty |
| Dormant | 3 months behind | Not eligible for new claims until arrears are cleared |
| Suspended | 6 months behind | Committee may suspend membership |
| Exited | 12 months behind | Membership ends; may rejoin as a new member |
Adjust the months to suit your members. The important thing is that each stage is written down and applied automatically, not decided case by case.
Arrears and claims
This is where disputes happen. Choose one approach and write it into the constitution:
- Block the claim until arrears are paid. Simple and firm.
- Deduct arrears from the benefit. Kinder in a moment of loss, and the welfare still recovers what it is owed.
- Committee decides. Flexible, but risks accusations of favouritism. If you choose this, record the reason for every decision.
Many welfares combine them: deduct arrears of up to three months; block claims if more than three months behind.
Penalties
Penalties encourage prompt payment, but keep them modest and predictable: for example, KES [50] for each month paid late. Avoid penalties that grow so large members give up and leave.
Reinstatement
Give dormant and suspended members a clear way back: pay all arrears plus a reinstatement fee, and serve a fresh waiting period before claiming. This stops people rejoining only when a relative falls ill.
Sample clauses
Arrears. A member is in arrears when a contribution or levy remains unpaid 30 days after its due date. The secretary shall notify members in arrears each month.
Dormancy. A member three or more months in arrears is dormant and is not eligible for benefits until all arrears are paid.
Claims while in arrears. Where a member is up to three months in arrears at the time of a loss, the arrears shall be deducted from the benefit. Where a member is more than three months in arrears, no benefit is payable.
Reinstatement. A suspended member may be reinstated on paying all arrears and a reinstatement fee of KES [AMOUNT], and becomes eligible for benefits after a waiting period of [three] months.
Make the rules visible
Members accept rules they can see. Send monthly statements so nobody is surprised, and remind members before they become dormant. In Jalika, member status updates automatically as people pay or fall behind, reminders go out by SMS, and every member can see their own balance.
Put these rules into practice
Jalika keeps your register, contributions, levies and claims in one place, and applies your constitution's rules automatically.