New Delhi: The Finance Ministry on Monday approved several welfare measures, including gratuity limit and increase in family pension, for the benefit of agents and employees of Life Insurance Corporation of India (LIC). According to a statement issued by the Finance Ministry, these welfare measures relate to amendments to the LIC (Agent) Regulations 2017, increase in gratuity limit and uniform rate of family pension, among others.
Sharing its details in the statement, it was said that the ministry has increased the gratuity limit for LIC agents to Rs. 3 lakhs to Rs. 5 lakhs, with a view to significantly improving working conditions and benefits for them. There is also a provision to qualify hired agents under Renewal Commission, which will improve their financial stability.
Currently LIC agents are not eligible for renewal commission based on any work completed under the old agency. According to the statement, the existing limit of the agent’s term insurance cover has been increased from Rs 3,000-10,000 to Rs 25,000-1,50,000. This increase in term benefit will greatly benefit the families of agents who are no longer in this world. This will give them more substantial welfare benefits.
In respect of LIC employees, the Ministry has also sanctioned family pension at the same rate of 30 per cent for the welfare of families. More than 13 lakh agents and over one lakh regular employees will benefit from these welfare measures, which play an important role in LIC’s growth and deepening insurance penetration in India, the statement said. LIC, established in 1956 with an initial capital of Rs 5 crore, by March 31, 2023 will be Rs. 40.81 lakh crore with a life fund of Rs. 45.50 lakh crores worth of assets.
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