Union Cooperation Minister Amit Shah on Tuesday said the government is strengthening the role of cooperative institutions in expanding insurance coverage across the country, with over 150 cooperative banks and societies already registered as corporate agents to distribute insurance products.
In a written reply in the Lok Sabha, Shah said the Ministry of Cooperation has launched a special drive to enhance insurance penetration and financial inclusion through the cooperative network, aligned with the government’s goal of “Insurance for All by 2047” and the vision of “Sahakar se Samriddhi.”
Under the initiative, cooperative banks are being encouraged to act as distributors of insurance products by becoming corporate agents, enabling deeper outreach in rural, semi-urban and underserved areas. According to the minister, more than 150 cooperative banks and societies have registered as corporate agents as of March 3, 2026, as per the Insurance Regulatory and Development Authority of India.
Shah noted that cooperative institutions possess a vast grassroots network that can significantly strengthen insurance outreach. Cooperative banks maintain over 22 crore deposit accounts, while Primary Agricultural Credit Societies (PACS) have more than 13 crore farmer members, creating a strong last-mile delivery network for financial and insurance services across the country.
To further support this effort, the Ministry of Cooperation has circulated Model Bye-laws for PACS to all States and Union Territories, enabling them to distribute insurance products. Many PACS are also functioning as Common Service Centres (CSCs) and are facilitating the delivery of insurance and other digital services at the village level. As of February 24, 2026, a total of 52,369 PACS have been activated as CSCs, helping expand access to financial and insurance services in rural areas.
Shah also highlighted a key legislative reform aimed at strengthening the cooperative sector’s participation in the insurance ecosystem. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 has amended the Insurance Act, 1938, allowing cooperative societies to establish insurance cooperative societies in India.
Under the amended provisions, cooperatives registered under the Co-operative Societies Act, 1912, any state cooperative law, or the Multi-State Co-operative Societies Act, 2002 are now recognised as eligible entities to set up insurance cooperatives.
The Insurance Regulatory and Development Authority of India has also introduced regulations promoting digitisation and electronic policy servicing, enabling cooperative entities working as corporate agents to use insurers’ technology platforms for seamless onboarding and servicing of policyholders.
To strengthen technological capabilities in the cooperative banking sector, the Ministry has promoted Sahakar Sarathi Private Limited for rural cooperative banks and National Urban Cooperative Finance and Development Corporation for urban cooperative banks. These institutions support technological upgradation, capacity building and system integration, enabling cooperative banks to function effectively as distributors of insurance products.
Shah added that employees of cooperative institutions acting as corporate agents must undergo mandatory training and certification from IRDA-recognised institutions, such as the Insurance Institute of India, to ensure professional competence in distributing insurance products.
The initiative is expected to significantly expand insurance coverage in rural and semi-urban areas by leveraging the extensive cooperative network across the country.
