During a recent field interaction with Self-Help Group (SHG) women in Rajasthan, several shared their disheartening experiences with insurance companies. Despite understanding the importance of insurance to mitigate risks-whether personal, agricultural, or business-related-many women reported cases of mis-selling, delayed settlements, and partial or denied claims, even in the event of accidental deaths. One woman, unsure whether her premium was even deposited after handing it over to an agent, reflected the trust deficit that exists at the grassroots. A woman serving as an insurance agent under the “Lakhpati Didi” scheme shared her difficulty in convincing rural people to buy insurance, given their prior negative experiences.

In some cases, policies lapsed without refunds, leading to a complete loss of paid premiums. Though insurance is recognised as crucial for risk coverage, a lack of awareness and unsatisfactory service delivery keeps many rural Indians skeptical and excluded from the formal system.

Against this backdrop, the announcement by the Union Home Minister, who also leads the newly formed Ministry of Cooperation (established in 2021), to launch a cooperative-based insurance company has been widely welcomed. Alongside this, a cooperative structure for cab drivers akin to Ola and Uber was also proposed. These initiatives were hailed across........

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