The Indian government has recently given its approval for a set of welfare measures aimed at benefiting agents and employees associated with the Life Insurance Corporation of India (LIC). These measures include an increase in gratuity limits, eligibility for renewal commission, improved term insurance cover, and a uniform rate of family pension. These changes follow amendments made to the LIC (Agents) Regulations of 2017.
Enhanced Gratuity Limits:
One of the significant changes in these welfare measures is the increase in gratuity limits for LIC agents. The gratuity limit has been raised from ₹3 lakh to ₹5 lakh. This adjustment seeks to provide financial security and recognition to the hard work put in by the agents.
Renewal Commission for Reappointed Agents:
Another noteworthy change is that reappointed agents will now be eligible for renewal commission. This is a significant financial boost for agents who were previously not entitled to renewal commission for business completed under the old agency system. This change aims to enhance the financial stability of LIC agents.
Improved Term Insurance Cover:
Term insurance cover has also been significantly improved as part of these welfare measures. Previously, the coverage ranged from ₹3,000 to ₹10,000. With the new measures, the coverage has been expanded to a range of ₹25,000 to ₹1,50,000. This enhancement ensures that the families of deceased agents receive more substantial welfare benefits, providing them with greater financial security during challenging times.
Uniform Family Pension Rate:
In an effort to streamline benefits for LIC agents and employees, it has been decided that family pension will be paid at a uniform rate of 30%. This simplification ensures that all beneficiaries receive equal financial support, promoting fairness and equity among LIC’s workforce.
These welfare measures are expected to positively impact over 1.3 million agents and more than 100,000 regular employees associated with LIC. The government recognizes the pivotal role played by these individuals in the growth of LIC and the expansion of insurance services in India. With increased gratuity limits, renewal commissions, enhanced term insurance coverage, and uniform family pension rates, LIC agents and employees can look forward to improved financial security and well-deserved recognition for their contributions to the insurance sector.
