Lok Sabha Question No. 2862 (UNSTARRED), answered on 2026-03-10
Subject: Cooperative Insurance
Ministry: COOPERATION
Asked by: Shri Arup Chakraborty

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO.2862 TO BE ANSWERED ON 10 th  March 2026

## Cooperative Insurance

## 2862.   Shri Arup Chakraborty:

Will the Minister of COOPERATION ( सहकारिता मंत्री ) be pleased to state:

(a) whether  the  Government  has  examined  the  potential  role  of  cooperative  insurance institutions in expanding insurance penetration and financial inclusion, particularly in rural, semi-urban and underserved regions and if so, the details thereof;

(b)  whether  the  Government  has  identified  regulatory,  financial  and  capacity-related challenges  limiting  the  growth  of  cooperative  insurers  in  the  country,  including  capital requirements,  governance  norms  and  access  to  technology  and  if  so,  the  steps  taken  or proposed to be taken to address these challenges; and

(c) whether  the  Government  proposes  to  introduce  regulatory  reforms,  financial  support mechanisms, or capacity-building initiatives to strengthen cooperative insurance entities and enable them to function as effective contributors to India's insurance ecosystem and if so, the details and timelines thereof?

## ANSWER

## THE MINISTER OF COOPERATION ( सहकारिता मंत्री ) (SHRI AMIT SHAH)

(a) Yes,  Sir.  In  order  to  enhance  the  role  of  cooperatives  in  expanding  insurance penetration and financial inclusion, in alignment with the goal of Insurance for All by 2047 and to realize the vision of Sahakar se Samriddhi, a special drive has been undertaken by the Ministry of Cooperation.

Under the campaign, efforts are made to enable Cooperative Banks to act as distributors of  insurance  products  by  becoming  Corporate  Agents,  thereby  strengthening  last-mile outreach, particularly in rural, semi-urban and underserved areas.

Further, the Ministry of Cooperation prepared Model Bye-laws for Primary Agricultural Credit Societies (PACS) and circulated them to all States/UTs. As a result, PACS have been enabled  to  undertake  distribution  of  insurance  products.  PACS  are  also  functioning  as Common  Service  Centres  (CSCs)  and  are  facilitating  distribution  of  various  insurance products  at  the  grassroots  level.  Till  24 th February  2026,    52369  PACS  are  activated  as Common Service Centres.

Further, as per IRDAI, as on 03 rd March 2026, more than 150 cooperative banks and societies are registered as Corporate Agents to distribute insurance products.

Cooperative Banks maintain over 22 crore deposit accounts and have more than 13 crore farmer members (of PACS), providing strong grassroots presence and extensive coverage.

(b) & (c) The Insurance Act, 1938, as amended by Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 recognises co-operative societies registered under any of the following laws as eligible entities to set-up insurance co-operative society in India:

i.the provisions of the Co-operative Societies Act, 1912;

ii.any other law for the time being in force in any State relating to co-operative societies; or iii.The provisions of the Multi-State Co-operative Societies Act, 2002.

Thus,  in  terms  of  the  IRDAI  (Registration  of  Corporate  Agents)  Regulations,  2015 cooperative  societies  are  permitted  to  register  as  Corporate  Agents  and  are  allowed  to distribute insurance products.

IRDAI  has  issued  regulations  promoting  digitization  and  electronic  policy  servicing, enabling cooperative entities working as corporate agents to leverage technology platforms provided by insurers for seamless onboarding and servicing of policy holders.

Further,  the  Ministry  of  Cooperation  has  promoted  the  establishment  of  Sahakar  Sarathi Private  Limited  (SSPL)  for  Rural  Cooperative  Banks  and  National  Urban  Cooperative Finance and Development Corporation (NUCFDC) for Urban Cooperative Banks. These entities  facilitate  technological  upgradation,  capacity  building,  and  system  integration  of Cooperative Banks, thereby enabling them to function effectively as distributors of insurance products.

With  respect  to  capacity  building,  the  employees  of  cooperatives,  who  are  registered  as corporate agents to distribute insurance products are required to undergo mandatory training for professional competence and get certification from IRDAI-recognized institutions, such as the Insurance Institute of India.

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