The Ministry of Finance has given its approval for a new set of welfare measures aimed at benefiting both Life Insurance Corporation of India (LIC) agents and employees. These measures are associated with revisions to the LIC (Agents) Regulations of 2017, the enhancement of gratuity limits, and the establishment of a uniform family pension rate, among other provisions.
The approved welfare measures for LIC agents and employees include raising the gratuity limit from Rs 3 lakh to Rs 5 lakh, a change that promises to significantly enhance the working conditions and overall benefits for LIC agents. Furthermore, reappointed agents will now be eligible for renewal commission, ensuring greater financial stability for these individuals who were previously excluded from renewal commission on business conducted under the old agency model.
The term insurance cover for LIC agents has been expanded, with the range now extended from the existing Rs. 3,000-10,000 to Rs. 25,000-1,50,000. This enhancement in term insurance is expected to provide substantial welfare benefits to the families of agents in the event of their unfortunate demise.
To further bolster the welfare of LIC employees and their families, a uniform family pension rate of 30% has been introduced. This ensures that the families of LIC employees receive consistent support.
These welfare measures will directly benefit more than 13 lakh agents and over 1 lakh regular employees who play pivotal roles in the growth of LIC and the expansion of insurance penetration in India, marking a significant step towards improving their overall well-being.