Seethakka highlights financial shield for women SHGs

Hyderabad: The accident and loan insurance schemes introduced for women’s Self-Help Groups (SHGs) have emerged as a strong financial safeguard, said Danasari Anasuya nee Seethakka, Minister for Panchayat Raj, Rural Development and Women and Child Welfare.

The Minister stated that the government’s objective is to provide financial security to SHG members and their families, preventing them from falling into distress due to unforeseen circumstances.

She noted that in the event of the sudden demise of a woman member, families often struggle to repay bank loans, placing an additional burden on other group members and sometimes leading to associations being blacklisted by banks.

To address this issue, the State government implemented both accident insurance and loan insurance schemes. Under the Accident Insurance Scheme, each SHG member is covered for Rs 10 lakh in case of accidental death. Since its launch in 2024, 231 claims have been settled, with Rs 23.1 crore disbursed to beneficiary families.

Similarly, under the Loan Insurance Scheme, outstanding bank loans of up to Rs.2 lakh taken by SHG members are covered. So far, 2,993 claims have been processed, and Rs.223.7 crore has been paid by the government. In total, Rs 246 crore has been disbursed under both schemes.

The Minister said the initiatives have revived many inactive SHGs, encouraged new memberships, and enabled women to expand their businesses confidently. She reiterated that women’s empowerment remains a priority for the government, emphasiding that the development of women forms the foundation of the state’s overall progress.