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

Goverment Scheme | Dated: 22 Jul 2025

Life Insurance Corporation of India (LIC) has signed a Memorandum of Understanding (MoU) with the Ministry of Rural Development, Government of India, during the National Conclave on Financial Inclusion (‘Anubhuti’) in Goa (8–10 July 2025). The MoU aims to scale LIC’s Bima Sakhi Yojana in rural India by empowering women agents and boosting household incomes.

🎯 Key Highlights:

  • - LIC entered into the MoU with the Department of Rural Development (DoRD) under the Ministry of Rural Development on 21 July 2025, aligning the insurer’s rural outreach strategy with the Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY‑NRLM). The agreement was formalized during the conclave 'Anubhuti', underscoring a public–private partnership to expand insurance awareness and distribution networks in underserved regions.
  • - The Bima Sakhi Yojana, launched by Prime Minister Narendra Modi in December 2024, is exclusively designed for rural women aged 18–70 years who have passed Class X. It empowers them to become LIC insurance agents, providing them comprehensive training, a career path, and financial independence through performance-based stipends and commissions.
  • - Under this scheme, LIC’s women agents—termed ‘Bima Sakhis’—receive a monthly stipend: ₹7,000 in the first year, ₹6,000 in the second year, and ₹5,000 in the third year, alongside commission income. LIC aims to recruit 2 lakh women within three years, with over 50,000 registrations recorded in the first month after launch.

💡 Other Important Facts:

  • (i) The MoU enables synergy between DAY‑NRLM's rural livelihood networks and LIC’s insurance distribution, allowing Bima Sakhis to reach each Gram Panchayat effectively. The initiative is expected to enhance insurance awareness in villages and supplement household incomes, particularly for women-headed families.
  • (ii) LIC Managing Director & CEO Siddhartha Mohanty revealed that the company has allocated approximately ₹840 crore toward the stipend and training infrastructure during the first year, targeting premium generation of ₹4,000 crore through increased policy sales by Bima Sakhis.
  • (iii) With flexible working hours and digital tools, the Bima Sakhi program aims to build a sustainable women-led insurance force. Graduates of the scheme may qualify for LIC Development Officer roles, fostering long-term livelihoods and strengthening LIC’s presence in rural markets.

📚 Test Your Knowledge:

Recently, which organisation signed an MoU with the Ministry of Rural Development to implement the Bima Sakhi Yojana?

Correct Answer: LIC

🚀 Quick Recap:

About LIC

  • Founded: 1956
  • Headquarters: Mumbai