The Government of India has introduced the Women Udyam Bima Policy to support women entrepreneurs and encourage them to participate in the formal workforce. This policy, launched by The New India Assurance Co. Ltd, aims to provide financial protection and support to women running micro and small industries with an asset size not exceeding five crores. The policy covers fire, burglary, loss of profits, and weather-related damages, with a sum insured of up to five crores and flexible premium payment options.
According to Girija Subramanian, Chairman cum Managing Director of The New India Assurance Co. Ltd, the policy is designed to bridge the gap in insurance penetration among women in India, which stands at only 34.2% of total policies sold in 2022-23. Women in India face numerous challenges, including low financial literacy, limited access to tailored insurance, and income instability, making them vulnerable to financial risks.
The Women Udyam Bima Policy offers several key features, including flexibility in premium payments, a discount of up to 20% on premiums for women entrepreneurs, and the ability to adjust the sum insured based on financial capability. The policy applies to both manufacturing and services sectors and provides coverage for various occupancies.
The New India Assurance Co. Ltd is committed to promoting financial inclusion and empowerment for women-led businesses. The company has a strong female leadership, with around 30% of its workforce consisting of women, and is working towards making its processes more digital and automated. The company has also launched financial literacy programs focused on women and is partnering with self-help groups and NGOs to promote financial independence and well-being.
India’s goal of ‘Insurance for All by 2047’ is expected to lead to an evolution in women’s roles in the insurance sector, with more women participating as consumers, agents, and industry leaders. The New India Assurance Co. Ltd is supporting women’s empowerment and community development through various CSR initiatives, including skill development programs for rural women and health camps.
Overall, the Women Udyam Bima Policy is a significant step towards bridging the gap in insurance penetration among women in India and promoting financial inclusion and empowerment for women-led businesses. With its flexible features and commitment to financial literacy and digital automation, the policy has the potential to make a positive impact on the lives of women entrepreneurs in India.