Ministry of Finance Approves Welfare Measures to Boost Benefits for LIC Agents and Employees
In a significant move aimed at improving the well-being of Life Insurance Corporation of India (LIC) agents and employees, the Ministry of Finance has given the green light to a series of welfare measures. These measures encompass amendments to LIC (Agents) Regulations, 2017, an increase in the Gratuity Limit, and the introduction of a Uniform Rate of Family Pension, among other initiatives.
The following welfare measures, designed to enhance the lives of LIC agents and employees, have been officially approved:
1. Gratuity Limit Enhancement: The gratuity limit for LIC agents has been raised from Rs 3 lakh to Rs 5 lakh. This substantial increase is expected to significantly improve the working conditions and benefits enjoyed by LIC agents.
2. Eligibility for Renewal Commission: The new regulations now enable reappointed agents to qualify for renewal commissions. This change provides these agents with a much-needed boost in financial stability. Until now, LIC agents were ineligible for renewal commissions on business completed under their old agency.
3. Expanded Term Insurance Cover: The term insurance coverage for LIC agents has been expanded from the previous range of Rs. 3,000-10,000 to a more extensive range of Rs. 25,000-1,50,000. This expansion of term insurance coverage is anticipated to bring significant benefits to the families of agents in case of their unfortunate demise, offering them substantial welfare support.
4. Uniform Family Pension: The welfare of LIC employees’ families will be enhanced through the implementation of a uniform family pension rate of 30%. This measure ensures that the families of LIC employees receive consistent and improved financial support.
These welfare measures are set to benefit more than 13 lakh agents and over 1 lakh regular employees who play a pivotal role in the growth of LIC and the expansion of insurance coverage in India. The Ministry of Finance’s approval signifies the government’s commitment to the welfare and financial security of LIC agents and employees, thereby further strengthening the insurance sector in the country.
