Govt approves welfare measures for LIC agents, employees
Life Insurance Corp. of India (LIC), such as increase in gratuity limit, eligibility for renewal commission, term insurance cover and a uniform rate of family pension.
The measures follow amendments to LIC (Agents) Regulations, 2017, that proposed enhancement of gratuity limit, and uniform rate of family pension among others. The move will benefit more than 1.3 million agents, and over 100,000 regular employees, who play a pivotal role in the growth of LIC and deepening of insurance penetration in India, the finance ministry said in a statement.
For LIC agents, the gratuity limit has been raised from ₹3 lakh to ₹5 lakh. Also, reappointed agents will now 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 welfare measures for agents also include enhanced term insurance cover which has been expanded from the existing ₹3,000-10,000 rupees to ₹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, the finance ministry said. With regard to family pension, it has been decided that it would be paid at a uniform rate of 30%.
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