LIC Signs MoU with Rural Development Ministry to Promote Bima Sakhi Yojana

The Life Insurance Corporation of India (LIC) has entered into a significant partnership with the Ministry of Rural Development to promote the Bima Sakhi Yojana, a women-centric insurance distribution initiative. The Memorandum of Understanding (MoU), signed during the ‘Anubhuti’ Conclave on Financial Inclusion held in Goa from July 8–10, 2025, reflects a mutual commitment toward women empowerment, financial inclusion, and enhancing rural livelihoods through structured insurance career opportunities.

Background

LIC, India’s premier life insurer, has long been a pillar of financial security across the country. Recognizing the untapped potential of rural India and the importance of women-led development, LIC introduced the Bima Sakhi Yojana as a targeted initiative. The Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), which aims to reduce poverty through self-employment and skill development, aligns perfectly with the objectives of Bima Sakhi, forming the foundation for this strategic MoU.

Significance

The collaboration is crucial in empowering rural women by integrating them into the formal financial ecosystem as active stakeholders. By offering a performance-linked agency model, the scheme helps women gain long-term financial independence, enhances rural insurance penetration, and supports government goals under financial inclusion and women-led entrepreneurship. The MoU is also expected to increase household incomes in rural India by expanding livelihood options.

Objectives

• Empower rural women through career opportunities in the insurance sector.
• Promote financial literacy and awareness about life insurance in remote areas.
• Support rural households in improving income and economic resilience.
• Align with DAY-NRLM goals to enhance women’s participation in formal financial services.

Key Features

• Eligibility: Only women can enroll in the Bima Sakhi Yojana.
• Stipend Support: Rs. 7,000 in the first year, Rs. 6,000 in the second, and Rs. 5,000 in the third year, based on performance.
• Career Path: Offers all the privileges of a regular LIC agent, including commissions, incentives, and recognition.
• Alignment with NRLM: Facilitates integration with SHGs (Self-Help Groups) and rural women collectives.
• Implementation Support: Facilitated by the Ministry of Rural Development across states through existing rural development frameworks.