Aim to earn 5 times of stipend cost from Bima Sakhi scheme: LIC MD & CEO

Aim to earn 5 times of stipend cost from Bima Sakhi scheme: LIC chairperson

The Life Insurance Corporation (LIC) aims to earn at least five times the premium income from selling insurance policies through the Bima Sakhi yojana, which was launched in Panipat on December 9, its Managing Director and Chief Executive Officer Siddhartha Mohanty said.

“In the first year the cost of stipend will be at Rs 840 crore. But we expect five times of the stipend cost as premium income in the first year,” Mohanty told the media on the sidelines of the launch of the Bima Sakhi Yojana.

LIC, which currently holds 60 percent market share, is likely to maintain the lead despite regulatory changes, he said.

The sakhis will get a Rs 7,000 stipend per month in the first year. LIC aims to enroll 1 lakh women under the scheme in the first year.

In 3 years, the scheme aims to enrol 3 lakh women as bima sakhis.

Target for each sakhi will be to sell 24 insurance policies per year. If a sakhi is not able to fulfill the target of selling two insurance policies monthly, the stipend will not stop. LIC will review annual targets as the scheme progresses. They will sell easy-to-sell policies initially, he said.

Total outlay on PM sakhi scheme depends on how many women are enrolled each year, as apart from the stipend they will also earn commission.

Broad criteria for the women to enrol under the scheme is 10th pass, 18-70 years of age and their knack for marketing, Mohanty said.

“The scheme will address underemployment and unemployment issues. Objective is to have one woman as bima sakhi in every panchayat,” he added.