On September 18, 2023, the Ministry of Finance gave its approval to a set of welfare measures aimed at benefiting both Life Insurance Corporation of India (LIC) agents and employees. These measures encompass modifications to the Enhancement of Gratuity Limit, the Uniform Rate of Family Pension, and the LIC (Agents) Regulations, 2017, among others.
Specifically, these welfare measures for LIC agents and employees include:
1. Increasing the gratuity limit for LIC agents from INR 3 lakh (equivalent to USD 3,600.28) to INR 5 lakh (USD 6,000.47). This substantial raise in the gratuity limit enhances the working conditions and benefits for LIC agents.
2. Granting reappointed agents eligibility for renewal commission. This change ensures increased financial stability for reappointed agents, addressing the current limitation where LIC agents aren’t entitled to renewal commission on business completed under the old agency.
3. Expanding the term insurance coverage range for agents from INR 3,000-10,000 (USD 36.00-120.01) to INR 25,000-1.5 lakh (USD 300.02-1,800.14). This enhancement in term insurance benefits the families of deceased agents significantly, offering them more substantial welfare support.
4. Introducing a uniform family pension rate of 30% for the families of LIC employees, ensuring consistent financial assistance.
These welfare measures have a positive impact on over 1.3 million agents and more than 100,000 regular employees, all of whom play a pivotal role in the growth of LIC and the expansion of insurance coverage in India.
