LIC’s Bima Sakhi Scheme: Empowering Women to Earn Rs. 7,000 Per Month
The Life Insurance Corporation of India (LIC), one of the country’s leading insurance companies, has launched the Bima Sakhi Scheme, aimed at empowering women by providing them a unique opportunity to earn a steady income while promoting life insurance services in rural and semi-rural areas. This scheme has opened up avenues for women, particularly those who are 10th pass or higher, to contribute to their households’ income, while also enabling them to play an important role in the financial literacy and insurance sectors.
In this article, we will explore the Bima Sakhi Scheme in-depth, including its objectives, eligibility criteria, benefits, and the impact it can have on the financial independence of women, particularly in rural India.
What is the Bima Sakhi Scheme?
The Bima Sakhi Scheme is a social initiative by LIC, aimed at recruiting women as LIC agents who will work in rural and semi-rural regions to promote life insurance policies and educate people about the benefits of life insurance. These women, once trained, become the Bima Sakhi or insurance ambassadors for their communities, helping spread awareness about LIC’s life insurance products and ensuring financial inclusion in under-served areas.
The key goal of the Bima Sakhi initiative is to provide women with an opportunity to earn a sustainable income while also contributing to the financial awareness and growth of the life insurance sector in India. The initiative is also designed to increase the number of LIC agents in rural and semi-rural areas, thereby reaching out to a broader population.
Objectives of the Bima Sakhi Scheme
The main objectives of the Bima Sakhi Scheme are as follows:
- Empowerment of Women: The scheme aims to empower women by providing them with an opportunity to earn a steady income. It gives them financial independence while allowing them to balance their work and family life.
- Promoting Financial Literacy: It helps in spreading awareness about life insurance products in rural areas, which are often underserved in terms of financial knowledge and services.
- Increasing LIC’s Reach: LIC intends to strengthen its penetration in rural and semi-rural areas through a network of trained women agents. This helps LIC expand its customer base and improve the financial inclusion of underinsured and uninsured populations.
- Creating Employment Opportunities: The scheme helps provide a source of income to women who may not have access to regular employment opportunities, particularly in remote areas.
How the Bima Sakhi Scheme Works
The process of becoming a Bima Sakhi involves several key steps:
- Eligibility Criteria: Women who are at least 10th grade pass are eligible to apply for the Bima Sakhi scheme. They should be from rural or semi-rural areas and should possess basic communication skills.
- Training: Once selected, the women are provided with training sessions conducted by LIC. These sessions cover various aspects of the life insurance business, including:
- The types of insurance policies offered by LIC.
- The process of selling policies.
- Basic financial literacy and customer service.
- Earning Potential: After the training, Bima Sakhis can start working in their communities. They are given the task of promoting LIC’s life insurance products. The more policies they sell, the higher their earnings. On average, a Bima Sakhi can earn up to Rs. 7,000 per month or even more, depending on the volume of business they generate.
- Incentives and Commissions: Bima Sakhis earn through commissions for every policy they successfully sell. The amount of commission depends on the premium amount of the policies and the number of policies sold. Women can also receive performance-based incentives and rewards.
- Flexible Working Hours: One of the biggest benefits of the Bima Sakhi Scheme is its flexibility. Women can work from home, visit clients at convenient times, and manage their work-life balance effectively. This flexibility makes the scheme an attractive option for women who may have household responsibilities.
- Support from LIC: Bima Sakhis are provided with continuous support by LIC throughout their tenure. They receive assistance in marketing, access to necessary resources, and guidance from LIC officials. This helps them build their skills and grow in their role as a trusted insurance advisor in their community.
Key Features and Benefits of the Bima Sakhi Scheme
- Financial Independence: One of the biggest advantages of the Bima Sakhi Scheme is the financial empowerment of women. By becoming an agent of LIC, women can earn a substantial income, often enabling them to contribute significantly to their family’s finances.
- Employment Opportunity for 10th Pass Women: The scheme opens doors for women with a minimum education qualification of 10th grade, allowing them to secure a reliable source of income. This is a major opportunity for women in rural areas who may not have many employment options due to lack of formal education or skills.
- Work from Home: The flexibility to work from home allows women to manage their household responsibilities while earning a steady income. This makes it a practical choice for women, especially in rural areas where mobility can be a challenge.
- Increased Financial Literacy: As Bima Sakhis, women become familiar with various life insurance products and financial concepts. This not only increases their knowledge but also helps them in their personal financial planning.
- Role in Community Development: By promoting life insurance, Bima Sakhis play a vital role in improving the financial security of families in their communities. In rural India, many people remain unaware of the importance of life insurance. Through their work, Bima Sakhis educate individuals about the need for financial protection for their families, especially in case of unforeseen circumstances.
- Career Growth: Although initially a part-time income source, the Bima Sakhi Scheme can evolve into a full-time career opportunity. With consistent performance, Bima Sakhis can take on leadership roles and train other women in their communities to become agents, thus scaling up their earning potential.
Challenges and Concerns
While the Bima Sakhi Scheme offers numerous benefits, there are certain challenges that need to be addressed for its success:
- Awareness and Education: In many rural areas, women may not be aware of this opportunity, and convincing them to participate can be a challenge. Therefore, extensive awareness campaigns and outreach programs are essential.
- Sales Pressure: The scheme is commission-based, which means Bima Sakhis are dependent on their sales for income. This may create pressure, especially during the initial stages when they are still learning the ropes of selling insurance.
- Cultural Barriers: In some regions, women may face societal pressures that discourage them from pursuing income-generating opportunities outside their homes. Overcoming these barriers requires significant cultural change and support from the community.
Conclusion
LIC’s Bima Sakhi Scheme is an innovative initiative that not only helps in expanding the reach of life insurance in rural India but also plays a pivotal role in empowering women. It provides women with an opportunity to earn a substantial income, learn new skills, and contribute to the financial inclusion of their communities. By offering flexible work hours, training, and ongoing support, the Bima Sakhi initiative paves the way for women to build a meaningful career, even with minimal education.
The Bima Sakhi Scheme is a step towards achieving gender equality in the workplace while simultaneously addressing the insurance gap in rural areas. It exemplifies how micro-entrepreneurship, combined with financial literacy, can be a powerful tool for women’s empowerment and rural development in India.
