NEW DELHI: Approving a range of welfare measures for the agents and employees of the Life Insurance Corporation of India (LIC), the Ministry of Finance on Monday raised the gratuity limit for the agents of the insurer from Rs 3 lakh to Rs 5 lakh.
Another important change is the eligibility of reappointed agents to receive renewal commissions. Previously, LIC agents were ineligible for renewal commission on any business completed under the old agency. This modification aims to provide enhanced financial stability to reappointed agents.
Furthermore, the term insurance cover for the agents has been extended from the existing range of Rs 3,000-10,000 to Rs 25,000-1,50,000. This expansion of coverage will benefit the families of deceased agents, providing them with more substantial welfare support.
In addition, the welfare measures include the introduction of a uniform rate of 30% for family pensions, ensuring equitable benefits for the families of LIC employees. “More than 13 lakh agents and more than 1 lakh regular employees, who play a pivotal role in the growth of LIC and deepening of insurance penetration in India, will benefit from these welfare measures,” said the release.