In News:

Life Insurance Corporation of India (LIC) has signed a Memorandum of Understanding (MoU) with the Department of Rural Development, Ministry of Rural Development, to implement the Bima Sakhi Yojana in rural areas. The agreement was formalized during the ‘Anubhuti’ national conclave on financial inclusion held in Goa.

About Bima Sakhi Yojana:

• Implementing Body: Life Insurance Corporation of India (LIC) in collaboration with the Union Ministry of Rural Development.
• Objective: To promote financial inclusion and women empowerment by facilitating their participation in the insurance distribution sector.
• Target Group: Rural women aged 18–70 years, with at least a Class 10 qualification.

Key Features:

• Stipendiary LIC Agency Scheme:
  • Women are inducted as LIC agents with all associated privileges.
  • The scheme offers a monthly stipend for the initial three agency years:
    • ?7,000 in the first year
    • ?6,000 in the second year
    • ?5,000 in the third year (Subject to performance and terms and conditions)
• Commission Benefits:
  • In addition to stipends, Bima Sakhis are eligible for sales commissions.
  • A commission of ?48,000 (excluding bonuses) is provided in the first year for qualifying agents.
• Training & Career Path:
  • Selected candidates undergo specialized training to build capacity in insurance awareness and financial literacy.
  • Post-training, they function as LIC agents.
  • Graduates among them may be eligible to become LIC Development Officers.
• Scale of Implementation: The scheme aims to appoint 2 lakh Bima Sakhis over a period of three years, with focus on enhancing rural outreach and insurance penetration.

Eligibility Criteria:

• Age Limit: 18 to 70 years
• Minimum Education: Must have passed Class X
• Preference: Women from rural areas are prioritized

Ineligibility Conditions:

• Women who are:
  • Related to existing LIC agents or employees (including spouse, children, siblings, parents, and in-laws)
  • Retired LIC employees or ex-agents
  • Currently working as LIC agents

Significance:

• Promotes gender empowerment and financial literacy in rural India.
• Part of government’s push for inclusive financial growth through public-private partnerships.
• Illustrates convergence between LIC’s social responsibility and government rural development goals.