Sharing its details in the statement, it was said that the Ministry has approved increasing the gratuity limit for LIC agents from Rs 3 lakh to Rs 5 lakh, with the aim of substantially improving the working conditions and benefits for them.
The Finance Ministry on Monday approved a number of welfare measures, including increase in gratuity limit and family pension, for the benefit of agents and employees of Life Insurance Corporation of India (LIC). According to the statement issued by the Finance Ministry, these welfare measures are related to amendment in LIC (Agent) Regulations 2017, increase in gratuity limit and uniform rate of family pension etc.
Sharing its details in the statement, it was said that the Ministry has approved increasing the gratuity limit for LIC agents from Rs 3 lakh to Rs 5 lakh, with the aim of substantially improving the working conditions and benefits for them. There is also a provision for the hired agents to be eligible under renewal commission, which will improve their financial stability.
At present LIC agents are not eligible for renewal commission on the basis of any work completed under the old agency. According to the statement, the existing limit of 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 those agents who are no longer in this world. This will provide them with more significant welfare benefits.
In respect of LIC employees, the Ministry has also approved family pension at a uniform rate of 30 per cent for the welfare of families. More than 13 lakh agents and more than 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, had an asset base of Rs 45.50 lakh crore with a life fund of Rs 40.81 lakh crore as of March 31, 2023.
