Speaking at the fifth Foundation Day of the Ministry of Cooperation, Shah said the proposed insurer would help cooperatives enter the life insurance business, although he did not share details such as the ownership structure, timeline, capital requirement or regulatory approvals.
“We will be setting up a life insurance company in the cooperative sector. This will help in the growth of cooperatives in the insurance sector,” Shah said.
The announcement comes at a time when India has 26 life insurance companies. Shah noted that the cooperative sector already has a presence in general insurance through IFFCO Tokio General Insurance, a joint venture promoted by fertiliser cooperative IFFCO.
What we know so far
The proposed entity will operate as a life insurance company under the cooperative sector. The objective is to expand the business activities of cooperatives into the insurance space.
The government has not yet disclosed details on the company’s launch timeline, shareholding pattern, business model or whether it has sought regulatory approval from the Insurance Regulatory and Development Authority of India (IRDAI).
More details are expected once the proposal progresses.
Apart from the insurance announcement, Shah said the cooperative-based ride-hailing platform Bharat Taxi will expand its services to 500 cities over the next two years. He also highlighted other initiatives aimed at modernising the cooperative sector, including greater professionalisation, technology adoption and governance reforms.
India has around 8.5 lakh cooperative societies with more than 30 crore members, according to the government. Shah said the cooperative sector is being expanded beyond its traditional businesses such as dairy, sugar, fertilisers and banking into new areas, including mobility and now life insurance.
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First Published: Jul 7, 2026 8:18 AM IST
