The Finance Ministry on Monday approved a series of welfare measures, including enhancement of the gratuity limit and family pension, for the benefit of Life Insurance Corporation of India (LIC) agents and employees.
The welfare measures are related to the amendments to LIC (Agents) Regulations, 2017, Enhancement of Gratuity Limit, and Uniform Rate of Family Pension, among others, the finance ministry said in a statement.
Sharing the details, the statement said the ministry has enhanced the gratuity limit from Rs 3 lakh to Rs 5 lakh for LIC agents aimed at bringing substantial improvements to the working conditions and benefits for them.
It has also enabled the reappointed agents to be eligible for renewal commission, thereby providing them with increased financial stability.
Currently, LIC agents are not eligible for renewal commission on any business completed under the old agency.
The term insurance cover for the agents has been expanded from the existing range of Rs 3,000-10,000 to Rs 25,000-1,50,000, it said, adding this enhancement in term insurance will significantly benefit the families of deceased agents, offering them a more substantial welfare benefit.
With regard to LIC employees, the ministry has also approved family pension at a uniform rate of 30 per cent for the welfare of the families.
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, it said.
Incorporated in 1956 with an initial capital of Rs 5 crore, LIC has an asset base of Rs 45.50 lakh crore with a life fund of Rs 40.81 lakh crore as of March 31, 2023.