On September 18, 2023, the Ministry of Finance approved a set of welfare measures aimed at benefiting Life Insurance Corporation of India (LIC) agents and employees.
These measures encompass several key changes, including increasing the gratuity limit for LIC agents from Rs 3 lakh to Rs 5 lakh, enabling reappointed agents to receive renewal commission, expanding the term insurance cover for agents from Rs. 3,000-10,000 to Rs. 25,000-1,50,000, and introducing a uniform family pension rate of 30% for LIC employees.
These measures, designed to enhance the financial well-being and working conditions of LIC agents and provide greater security to their families, will positively impact over 13 lakh agents and more than 1 lakh regular employees, contributing to the growth and expansion of LIC’s services and insurance penetration in India.
Ministry of Finance
Ministry of Finance approves welfare measures for LIC agents and employees
Welfare measures include increase in gratuity limit, eligibility for renewal commission, term insurance cover for LIC agents; and a uniform rate of family pension for LIC employees
18 SEP 2023
The Ministry of Finance today approved a series of welfare measures for the benefit of Life Insurance Corporation of India (LIC) agents and employees. The welfare measures are related to the amendments to LIC (Agents) Regulations, 2017, Enhancement of Gratuity Limit, and Uniform Rate of Family Pension among others.
The following welfare measures w.r.t. LIC agents and employees were approved:
- Enhancement of the gratuity limit from Rs 3 lakh to Rs 5 lakh for LIC agents. It will bring substantial improvements to the working condition and benefits of LIC agents.
- Enabling reappointed agents to be eligible for renewal commission, thereby providing them with increased financial stability. Currently, LIC agents are not eligible for renewal commission on any business completed under the old agency.
- The term insurance cover for the agents has been expanded from the existing range of Rs. 3,000-10,000 rupees to Rs. 25,000-1,50,000. This enhancement in term insurance will significantly benefit the families of deceased agents, offering them a more substantial welfare benefit.
- Family pension at a uniform rate of @30% for the welfare of the families of LIC employees.
More than 13 lakhs agents and more than 1 lakh regular employees, who play a pivotal role in the growth of LIC and deepening of insurance penetration in India, will benefit from these welfare measures.
Source – PIB