Indian Economy News

The Ministry of Finance approved the welfare measures for LIC agents and employees

On September 18, 2023, the Ministry of Finance approved a series of welfare measures for the benefit of Life Insurance Corporation of India (LIC) agents and employees. The welfare measures include the amendments of the Enhancement of Gratuity Limit, Uniform Rate of Family Pension, and LIC (Agents) Regulations, 2017, among others.

The welfare measures with respect to LIC agents and employees that were approved include- (i) Increasing the gratuity limit for LIC agents from Rs. 3,00,000 (US$ 3,600.28) to Rs. 5,00,000 (US4 6,000.47), which will significantly improve LIC agents' working conditions and benefits, (ii) Enabling reappointed agents to be eligible for renewal commission, thereby providing them with increased financial stability, as currently LIC agents are not eligible for renewal commission on any business completed under the old agency, (iii) The existing range of Rs. 3,000-10,000 (US$ 36.00-120.01) has been increased to Rs. 25,000-1,50,000 (US$ 300.02-1,800.14) for the term insurance coverage for the agents. The families of deceased agents will significantly benefit from this improvement in term insurance because it will provide them with a more substantial welfare benefit. (iv) For the benefit of the families of LIC employees, a family pension at a uniform rate of 30% is provided.

These welfare measures will help more than 13 lakh agents and more than 1 lakh regular employees, who are essential to the growth of LIC and the development of insurance coverage in India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.