This article describes the trajectory of moral and social upliftment of villagers in the Sevagram region of Maharashtra that had its roots from the initiation and success of a micro health insurance scheme first introduced to ensure uniform health care to the poor and needy in a Nagpur village. With its increasing acceptance across more villages, the scheme was extended to cover income generation programmes as well as women's self-help groups addressing the village as one social unit for development. At the next stage, the health insurance scheme moved towards action-oriented individuals who could play leadership roles in the community. This empowerment and leadership conferred on select individuals helped initiate the anti-liquor movement in the villages around Sevagram.