Centre approves welfare measures for LIC agents, employees
Increase in gratuity limit, eligibility for renewal commission, term insurance cover and a uniform rate of family pension for LIC agents and employees are among the welfare measures
The Finance Ministry on Monday (September 18) approved a series of welfare measures, including enhancement of the gratuity limit and family pension, 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, Union Ministry of Finance said in a statement.
As part of the measures, the government has enhanced the gratuity limit for LIC agents from ₹3 lakh to ₹5 lakh.
“It will bring substantial improvements to the working conditions and benefits of LIC agents,” the ministry said.
The government has also enabled the 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.
That apart, the term insurance cover for the agents has been expanded from the existing range of ₹3,000-10,000 to ₹25,000-1,50,000, the statement said, adding this enhancement in term insurance will significantly benefit the families of deceased agents, offering them a more substantial welfare benefit.
With regard to LIC employees, the ministry has also approved family pension at a uniform rate of 30 per cent for the welfare of the families.
“More than 13 lakh 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,” the statement said.
Incorporated in 1956 with an initial capital of ₹5 crore, LIC has an asset base of ₹45.50 lakh crore with a life fund of ₹40.81 lakh crore as of March 31, 2023.