Ministry of Finance approves welfare measures for LIC agents and Employees
On September 18, 2023, the Ministry of Finance made a landmark decision to approve a comprehensive set of welfare measures for the Life Insurance Corporation of India (LIC) agents and employees. These measures encompass significant enhancements to the gratuity limit, eligibility for renewal commission, term insurance coverage for LIC agents, and the establishment of a uniform family pension rate for LIC employees. These changes are expected to greatly improve the working conditions and financial well-being of over 13 lakh LIC agents and more than 1 lakh regular employees, thus contributing to the growth of LIC and the expansion of insurance coverage in India.
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.
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