The LIC Bima Sakhi Yojana (also known as the LIC Bima Sakhi Scheme) is a women-centric initiative launched by the Life Insurance Corporation of India (LIC). The primary objective of the scheme is to empower women in rural and semi-urban areas by providing them with opportunities to work as life insurance agents. The women, called Bima Sakhis, help promote awareness about life insurance policies, sell these policies, and assist people in their communities with financial planning.
Key Features of the Bima Sakhi Yojana:
- Empowerment of Women:
- The scheme is designed to empower women, particularly in rural areas, by providing them with a source of income. It encourages women to become financially independent by earning through commissions as LIC agents.
- Training and Support:
- LIC provides training to women who become Bima Sakhis. The training covers various aspects of the life insurance business, such as the details of life insurance products, customer service, marketing techniques, and selling strategies.
- Marketing support: LIC provides marketing materials, product brochures, and promotional support to Bima Sakhis to help them in their roles.
- Commission-Based Earnings:
- Bima Sakhis earn a commission for every insurance policy they sell. The commission structure is based on the insurance policy value.
- The commission provides a steady source of income, especially for women in rural areas where formal employment opportunities may be limited.
- Improved Financial Literacy:
- The scheme helps improve financial literacy among women by giving them access to life insurance knowledge. As a result, they become not only agents but also informed financial advisors in their communities.
- Bringing Life Insurance to Rural Areas:
- Rural areas often have low life insurance penetration due to limited awareness. Bima Sakhis act as a bridge between LIC and the local population, helping spread awareness and encouraging people to buy life insurance.
- Social Impact:
- The scheme contributes to financial inclusion by helping women become a part of the formal financial system and enabling them to promote insurance in areas that may otherwise be underserved.
- It also promotes gender equality by involving women in a sector traditionally dominated by men.
Process of Becoming a Bima Sakhi:
- Eligibility:
- Women from rural and semi-urban areas, who have basic educational qualifications and can communicate effectively, are eligible to become Bima Sakhis.
- There might be additional criteria based on the region, but the key requirement is the willingness to work in the field of life insurance sales and customer service.
- Application and Training:
- Women interested in becoming Bima Sakhis can apply through LIC’s local offices. After application, they are given training about LIC’s products, how to handle customer queries, the process of selling life insurance, and the structure of commission earnings.
- Implementation:
- Once trained, Bima Sakhis are equipped with the necessary materials and guidance to start working within their local communities.
- They meet potential customers, educate them about LIC policies, and help them purchase life insurance products suited to their needs.
Example of a Bima Sakhi in Action:
Let’s consider an example of a woman named Rama from a rural village in Uttar Pradesh.
Step-by-Step Process:
- Application: Rama is a housewife with basic education. She hears about the Bima Sakhi Yojana through a village meeting organized by LIC. Intrigued by the opportunity to earn money, she applies to become a Bima Sakhi.
- Training: After applying, she attends a training session organized by LIC. During this training, she learns about the various LIC life insurance policies, how they can benefit families, and the process of selling these policies.
- Selling Policies: Rama goes back to her village and starts interacting with people about the importance of life insurance. She educates families on the need for financial security, especially for the women and children in the community. She helps them understand the different insurance options available, such as endowment policies, term insurance, and children’s plans.
- Income Generation: Rama successfully sells a few policies. For each policy sold, she receives a commission. The commission may vary, but for example, if she sells a policy worth ₹1 lakh, she may earn a commission of ₹2,000 to ₹5,000, depending on the policy terms and commission structure.
- Long-Term Relationships: Over time, Rama builds a reputation in her community as a trusted insurance advisor. She continues to help families in her village with financial planning, including helping them renew their policies or buy additional coverage.
- Income and Financial Independence: Rama’s efforts help her earn a steady income. Over a year, she sells multiple policies and earns enough to contribute significantly to her family’s income. She gains financial independence and is able to support her family’s needs.
Impact of the Bima Sakhi Yojana:
- Women’s Empowerment:
- Women like Rama gain economic independence, which allows them to contribute financially to their families and communities. It also boosts their self-confidence and sense of purpose.
- Improved Life Insurance Penetration:
- The scheme helps increase life insurance penetration in areas where people may not have been previously aware of the benefits of life insurance.
- Socio-Economic Development:
- Bima Sakhis play a critical role in financial inclusion by making life insurance more accessible to rural and semi-urban populations.
- Community Building:
- Bima Sakhis like Rama create a network of trust within their communities, where people feel more comfortable discussing and investing in life insurance for the security of their families.
Conclusion:
The LIC Bima Sakhi Yojana is an excellent initiative that empowers women by giving them an opportunity to become self-reliant and financially independent while also improving financial literacy and inclusion in rural areas. Women like Rama, by becoming Bima Sakhis, play a pivotal role in bringing life insurance products to the masses, fostering socio-economic development, and creating a more informed society.