LIC Bima Sakhi Yojana Overview

The LIC Bima Sakhi Yojana is a new initiative aimed at empowering women through job opportunities in the insurance sector. Inaugurated by Prime Minister Narendra Modi, the scheme seeks to uplift rural women by transforming them into insurance agents. This programme aligns with the broader vision of a developed India.

Context and Objectives

The Bima Sakhi Yojana was launched to provide financial independence to rural women. It aims to create job opportunities while promoting insurance awareness in underserved areas. The initiative is part of the government’s strategy to enhance women’s participation in the workforce.

Job Opportunities

Under this scheme, women will work as Bima Sakhi, or insurance agents. They will receive a monthly financial support of Rs 7,000 during the first year. This support will gradually decrease in subsequent years. The programme aims to recruit 35,000 women initially, with plans for future expansion.

Earnings Structure

The earnings for Bima Sakhi agents will vary over the years. In the first year, agents will earn Rs 7,000 per month. This amount will drop to Rs 6,000 in the second year and Rs 5,000 in the third year. Additionally, agents can earn incentives based on their performance, including a commission for meeting insurance sales targets.

Recruitment Process

The recruitment of Bima Sakhi agents will occur in phases. The first phase will focus on hiring 35,000 women in Haryana. Future phases will expand the programme to include an additional 50,000 women across the country. This gradual rollout aims to ensure effective training and support for the agents.

Eligibility Criteria

To apply for the Bima Sakhi Yojana, women must be aged between 18 and 50 years. A minimum educational qualification of passing the 10th grade is required. The scheme prioritises women, especially those from rural backgrounds, to encourage inclusivity and empowerment.

Future Prospects

As the programme expands, it is expected to impact women’s economic status in rural areas. By creating a network of female insurance agents, the initiative will also promote financial literacy and insurance awareness among communities.

Questions for UPSC –

1. Critically analyse the role of women in India’s economic development through initiatives like the LIC Bima Sakhi Yojana.
2. Explain the significance of financial literacy in rural development. How does the LIC Bima Sakhi Yojana contribute to this?
3. What are the potential challenges in implementing the LIC Bima Sakhi Yojana? Discuss with examples.
4. What is the impact of government schemes on women’s empowerment in India? Provide suitable examples.

Answer Hints:

1. Critically analyse the role of women in India’s economic development through initiatives like the LIC Bima Sakhi Yojana.

1. Women contribute to the economy by participating in the workforce and entrepreneurship.
2. Initiatives like Bima Sakhi Yojana empower women by providing job opportunities in the insurance sector.
3. Financial independence gained through such programs enhances women’s decision-making power in households.
4. Empowered women can contribute to community development and upliftment, encouraging overall economic growth.
5. Government initiatives can help bridge the gender gap in employment and promote inclusive economic development.

2. Explain the significance of financial literacy in rural development. How does the LIC Bima Sakhi Yojana contribute to this?

1. Financial literacy equips individuals with the knowledge to make informed financial decisions, crucial in rural areas.
2. It promotes savings, investments, and effective management of resources, leading to economic stability.
3. Bima Sakhi Yojana trains women to become insurance agents, enhancing their understanding of financial products.
4. By increasing insurance awareness, the program helps rural communities mitigate risks and secure their livelihoods.
5. Financially literate women can educate their families, improving overall community financial health.

3. What are the potential challenges in implementing the LIC Bima Sakhi Yojana? Discuss with examples.

1. Recruitment challenges may arise in reaching the target demographic in remote rural areas.
2. Resistance from traditional gender roles may hinder women’s participation in the program.
3. Lack of awareness about the scheme can lead to low enrollment and engagement rates.
4. Training and support systems may be inadequate, affecting the effectiveness of the agents.
5. Economic fluctuations can impact the sustainability of the financial support provided to the agents.

4. What is the impact of government schemes on women’s empowerment in India? Provide suitable examples.

1. Government schemes promote women’s participation in economic activities, enhancing their social status.
2. Programs like Beti Bachao Beti Padhao encourage education and health for girls, contributing to long-term empowerment.
3. Self-Help Groups (SHGs) enable women to access credit and start businesses, encouraging entrepreneurship.
4. LIC Bima Sakhi Yojana specifically targets rural women, providing them with jobs and financial independence.
5. Collectively, these initiatives contribute to reducing poverty and improving the quality of life for women in India.