New Delhi: After launching Bharat Taxi as a cooperative-led ride-hailing platform, the Ministry of Cooperation is now preparing to expand the cooperative footprint in the insurance sector, ThePrint has learnt.
However, instead of floating a new cooperative entity, the ministry plans to leverage the existing structure of IFFCO-Tokio General Insurance — a joint venture between Indian Farmers Fertiliser Co-operative (IFFCO) and Japan’s Tokio Marine Group.
“Currently, cooperative sector has no direct presence in Insurance sector, first round of discussions has begun with IFFCO which has a major share in general insurance company IFFCO Tokio to expand services to cooperative sectors,” a senior official in the Ministry of Cooperation told ThePrint on the condition of anonymity.
IFFCO holds a 51 percent stake in the joint venture, while Tokio Marine Group owns the remaining 49 percent. The company offers a range of non-life insurance products, including motor, health, travel and home insurance.
As part of the plan, District Central Cooperative Banks (DCCBs), State Cooperative Banks (StCBs) and Urban Cooperative Banks (UCBs) are expected to be onboarded as corporate agents for insurance companies by the Insurance Regulatory and Development Authority of India (IRDAI), the country’s insurance regulator.
“We want a maximum number of cooperative banks to register as corporate agents for insurance companies including IFFCO Tokio,” the official said.
As of early 2026, India has around 34 State Cooperative Banks, 351 District Central Co-operative Banks and 1,469 Urban Co-operative Banks.
Under IRDAI regulations, corporate agents – including banks and brokers – can partner with up to nine insurance companies in each category (life and non-life). This framework is designed to widen consumer choice and deepen insurance penetration across the country.
A corporate agent is eligible to sell insurance products of all nine companies. The official clarified that while the ministry would prefer customers opt for IFFCO-Tokio products, there would be no compulsion.
“It is advisory and not mandatory,” the official said.
He added, “While we prefer cooperation among cooperatives, we do not want to take away the right of competition from customers.”
The proposal is still at an early stage, with only preliminary discussions held so far. “Currently, only discussions have taken place, it may take another one or two years before things start to formalise,” the official said.
Once formalised, the insurance products would be available to cooperative societies and customers across more than 30 sectors operating under the cooperative umbrella.
Larger expansion plan
Last year, Union Home and Cooperation Minister Amit Shah announced plans to introduce “Sahakari Insurance Services” as part of efforts to strengthen the cooperative sector and broaden its operational scope.
The move is in line with the National Cooperation Policy (NCP) 2025, unveiled last year, which seeks to modernise India’s cooperative ecosystem and expand its footprint into emerging sectors such as insurance, healthcare, ride-hailing, tourism among others.
Earlier this month, Shah rolled out Bharat Taxi — described as India’s first cooperative-driven ride-hailing platform — under the newly created Multi-State Sahakari Taxi Cooperative Ltd.
The service is currently operational in Delhi-NCR and parts of Gujarat, marking the ministry’s first significant step into app-based platform services.
However, unlike the Bharat Taxi model, the ministry is not considering the creation of a separate cooperative entity for insurance.
“When a cooperative society like IFFCO is already providing insurance services through IFFCO-Tokio and has a wide market presence, then creating a new one currently does not make sense,” the official said.
Notably, IFFCO-Tokio has already partnered with Bharat Taxi to provide insurance coverage for drivers (Sarathis). The arrangement includes personal accident cover of up to Rs 5 lakh and group health insurance for drivers and their families at nominal rates.
(Edited by Ajeet Tiwari)
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