LIC to enroll 1L women as 'Bima Sakhis' in 2025
What's the story
The Life Insurance Corporation of India (LIC) has unveiled an ambitious plan to enroll one lakh women under its Bima Sakhi scheme within the next 12 months. The initiative is part of LIC's larger plan to empower women, according to Siddharth Mohanty, the Managing Director and CEO of LIC. The insurer will allocate up to ₹840 crore for stipends for this enrollment drive.
Business prospects
Bima Sakhi scheme expected to generate significant new business
Mohanty was optimistic about the finances of the Bima Sakhi scheme, saying it is expected to bring in new business five times their investment. "We are hoping that they can bring ₹4,000 crore new business in the first year," he said. The stipend structure for the initiative has been detailed as ₹7,000 per month for the first year, ₹6,000 for second year, and ₹5,000 per month in the third year.
Expansion plans
Bima Sakhi to expand LIC's reach in under-penetrated areas
The Bima Sakhi scheme is not only a financial venture but also a strategic move to expand LIC's presence in under-served regions. Mohanty revealed future plans of appointing one Bima Sakhi in every Gram Panchayat. Despite upcoming regulatory changes, he remains confident about maintaining market share.
Regulatory outlook
LIC's stance on proposed changes in the Insurance Act
Speaking about proposed amendments to the Insurance Act, Mohanty said composite licensing would benefit the industry and LIC has no objections. The Finance Ministry is considering a number of changes to the 1938 Insurance Act, including increasing foreign direct investment (FDI) in insurance from 74% to 100%, and reducing paid-up capital. The Department of Financial Services (DFS) has invited public feedback on these proposals till December 10.