Research Paper #12 looks into whether access to microinsurance makes any difference in reducing child labour. The research compares three groups of households: those with no microcredit or microinsurance, those with microcredit but no microinsurance and those households with both microinsurance and microcredit. The study finds that in the case of extremely poor households with health microinsurance and/or life microinsurance in combination with microcredit, microinsurance has a significant effect on reducing child labour. However, it is also found that credit-life insurance has no significant influence. The practical policy consideration stemming from this research is that providing microcredit to extremely poor households is not enough to negate the use of child labour, however microcredit in combination with certain types of microinsurance can have a positive impact on reducing child labour.