Finance Ministry Approves New Welfare Perks For LIC Agents
The move is set to benefit over 13 lakh agents and more than 1 lakh regular employees of the country's largest insurer.
The Finance Ministry approved several new welfare schemes for agents of Life Insurance Corp. of India on Monday.
These include an increase in the gratuity limit, eligibility for the renewal commission, the expansion of term insurance coverage, and a uniform rate of family pension for LIC agents and employees.
The move is set to benefit over 13 lakh agents and more than 1 lakh regular employees of the country's largest insurer, according to a PIB release.
Part of the changes includes a provision where agents can now be eligible for renewal commissions on any business completed under the old agency.
The following measures have been approved by the ministry:
Gratuity limit enhancement from Rs 3 lakh to Rs 5 lakh for LIC agents
Enabling reappointed agents to be eligible for renewal commissions
The term insurance cover for the agents has been expanded from the existing range of Rs 3,000–Rs 10,000 to Rs 25,000–Rs 1.5 lakh.
Family pension at a uniform rate of 30% for the welfare of the families of LIC employees
According to LIC data, the agency's strength grew from 13,26,432 in FY22 to 13,47,325 in FY23. While private insurers, too, have been stepping up hiring, LIC agents currently dominate over 50% of the industry force.
