Cooperative life insurance firm to be set up soon: Shah, Pg13

Key Highlights:

• Union Cooperation Minister Amit Shah announced the upcoming establishment of a cooperative life insurance company.
• The announcement was made on the fifth Foundation Day of the Ministry of Cooperation.
• The initiative aims to expand the cooperative movement beyond traditional sectors like dairy, sugar, and fertilizers.
• India currently has approximately 8.5 lakh cooperatives with over 30 crore members.

Detailed Insights:

• The Ministry of Cooperation was established in 2021 with the vision of "Sahkar se Samriddhi" (Prosperity through Cooperation), providing a dedicated framework for the cooperative sector.
• The new cooperative life insurance firm seeks to enhance financial services within the cooperative model, building on existing ventures like IFFCO Tokio General Insurance.
• This move is expected to improve insurance penetration, particularly in rural areas, by leveraging the established trust and widespread network of cooperative institutions.
• Other significant initiatives include the planned expansion of Bharat Taxi, a cooperative-based ride-hailing platform, to 500 cities within the next two years.
• The government is also establishing the Tribhuvan Sahkari University in Anand, Gujarat, to develop human resources specifically for the cooperative sector.
• The Ministry of Cooperation has focused on strengthening Primary Agricultural Credit Societies (PACS), computerization, and promoting new multi-state cooperative societies.
• Minister Shah clarified that the Union Ministry's role is policy-making, not interfering with state subjects, addressing initial concerns about federalism.

Key Concepts Involved:

• Cooperative Movement: A people-centric economic model where members collectively own and control an enterprise for mutual benefit.
• Ministry of Cooperation: A Union Ministry established in 2021 to provide a separate administrative, legal, and policy framework for strengthening the cooperative sector in India.
• Cooperative Life Insurance: An insurance model where policyholders are also members and owners of the insurance company, aiming for affordability and community-driven protection.