Prime Minister Narendra Modi unveiled the ‘Bima Sakhi Yojana’, an ambitious initiative by the Life Insurance Corporation (LIC), during an event in Panipat on Monday. The program aims to recruit 100,000 women as Bima Sakhi within the first year, providing them with a pathway to financial independence and contributing to the expansion of the insurance sector.
“Expansion of the insurance sector will be spearheaded by women via the scheme. The data suggests LIC agents earn up to Rs 15,000/month on an average,” Narendra Modi said while inaugurating the scheme in Panipat.
The scheme is open to women aged 18-70 who have completed at least Class 10 education. Addressing the gathering, PM Modi emphasised its potential to revolutionise social security by leveraging women as key drivers of growth in the insurance domain. He highlighted that LIC agents, on average, earn up to ₹15,000 per month, showcasing the program’s economic promise.
Key Features of the Scheme:
- Target Recruitment: LIC plans to enrol 200,000 women as Bima Sakhi over three years, with 100,000 in the first year.
- Stipend Structure: Women will receive ₹7,000 in the first year, ₹6,000 in the second, and ₹5,000 in the third year.
- Training & Growth: Candidates will undergo IRDAI-provided training and may transition to permanent LIC development agents after passing a qualifying examination.
- Earning Potential: Beyond the stipend, Bima Sakhi can earn commissions on policy sales, with an expectation to sell 24 policies annually.
Finance Minister Nirmala Sitharaman, who was present at the event, noted that the initiative would initially appoint 25,000 women, creating opportunities for skill enhancement and financial autonomy.
“The women will get Rs 7000 stipend in the 1st year, Rs 6000 in 2nd year, Rs 5000 in 3rd year. Women in age groups 18-70 years can be appointed as Bima Sakhi. IRDAI may give training to these women to become permanent development agents after clearance of an exam,” Nirmala Sitharaman said.
LIC Chairperson Siddhartha Mohanty revealed that ₹840 crore would be allocated in the first year to support the scheme. He expressed optimism that premium income generated through the initiative would exceed expenditures by 4-5 times. Mohanty also mentioned efforts to extend the program’s reach into untapped rural areas, ensuring at least one Bima Sakhi in every panchayat.
Additionally, the scheme aligns with broader regulatory changes, including the potential for 100% foreign direct investment in the insurance sector. LIC, which saw its market share grow to 61.07% in April-September this year, remains confident in sustaining its leadership position amidst evolving industry dynamics.
By combining financial incentives with training and professional development, the Bima Sakhi Yojana is set to empower women while strengthening LIC’s penetration in rural and underserved markets.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
