The government has intensified efforts to expand insurance coverage across the country by leveraging the extensive cooperative network, with cooperative banks and societies being encouraged to act as distributors of insurance products.
The initiative forms part of a broader drive by the Ministry of Cooperation to strengthen financial inclusion and increase insurance penetration in line with the national goal of Insurance for All by 2047 and the vision of Sahakar se Samriddhi.
Under the campaign, cooperative banks are being enabled to distribute insurance products by registering as Corporate Agents. This move is aimed at strengthening last mile outreach and improving access to insurance services in rural, semi urban and underserved regions.
Officials said the cooperative banking network provides a strong foundation for expanding insurance coverage due to its extensive grassroots presence. Cooperative banks together maintain more than 22 crore deposit accounts, while Primary Agricultural Credit Societies have more than 13 crore farmer members across the country.
To support the initiative, the Ministry of Cooperation has also prepared model bye laws for Primary Agricultural Credit Societies and circulated them to all states and union territories. These model bye laws allow Primary Agricultural Credit Societies to distribute insurance products and expand their role beyond credit services.
Primary Agricultural Credit Societies are also functioning as Common Service Centres and facilitating access to various digital services, including insurance distribution, at the village level. As of 24 February 2026, a total of 52369 Primary Agricultural Credit Societies have been activated as Common Service Centres.
According to the Insurance Regulatory and Development Authority of India, more than 150 cooperative banks and cooperative societies had registered as Corporate Agents for distributing insurance products as of 3 March 2026.
The regulatory framework enabling cooperatives to participate in the insurance sector has been strengthened through amendments to the Insurance Act 1938 under the Sabka Bima Sabki Raksha Amendment of Insurance Laws Act 2025.
Under the amended provisions, cooperative societies registered under the Co operative Societies Act 1912, state cooperative laws or the Multi State Cooperative Societies Act 2002 are eligible to establish insurance cooperative societies in India.
In addition, under the IRDAI Registration of Corporate Agents Regulations 2015, cooperative societies are permitted to register as Corporate Agents and distribute insurance products offered by insurance companies.
Regulatory reforms have also promoted digitisation and electronic policy servicing, enabling cooperative institutions acting as Corporate Agents to use digital platforms provided by insurers for onboarding customers and servicing policies.
The Ministry of Cooperation has also supported the creation of dedicated institutions to strengthen the operational capacity of cooperative banks. Sahakar Sarathi Private Limited has been established for rural cooperative banks, while the National Urban Cooperative Finance and Development Corporation has been created to support urban cooperative banks.
These organisations are tasked with promoting technological upgrades, capacity building and system integration in cooperative banks, enabling them to effectively distribute insurance products and expand financial services.
To ensure professional standards in insurance distribution, employees of cooperative institutions registered as Corporate Agents are required to undergo mandatory training and certification. The training is conducted through institutions recognised by the Insurance Regulatory and Development Authority of India, including the Insurance Institute of India.
Officials said the initiative is expected to significantly expand insurance outreach by using the vast cooperative network to deliver financial services at the grassroots level and support the goal of universal insurance coverage in the coming decades.
