 "Life Insurance Corporation")
The Ministry of Finance on Monday okayed a series of welfare measures for the benefit of Life Insurance Corporation of India (LIC) agents and employees, such as a raise in gratuity limit, eligibility for renewal commission, and term insurance cover.
The measures are related to the amendments made to the LIC (Agents) Regulations, 2017, Enhancement of Gratuity Limit, and Uniform Rate of Family Pension among others.
The finance ministry increased the gratuity limit from Rs 3 lakh to Rs 5 lakh for LIC agents. It made reappointed agents eligible for renewal commission. Currently, LIC agents are not eligible for renewal commission on any business completed under the old agency.
The ministry also hiked the term insurance cover for agents from the current range of Rs 3,000-10,000 to Rs 25,000-1,50,000. This will significantly benefit the families of deceased agents, the ministry said.
The ministry also approved family pensions at a uniform rate of 30 per cent for the families of LIC employees.
"More than 1.3 million agents and more than 100,000 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," the ministry said in a release.
