Ministry of Finance approves Welfare measures for LIC Agents and Employees

The Ministry of Finance today approved a series of welfare measures for the benefit of Life Insurance Corporation of India (LIC) Agents and Employees.

The welfare measures include amendments to the LIC (Agents) Regulations, 2017, an increase in the gratuity limit, and a uniform rate of family pension, among other things.

The following welfare measures w.r.t. LIC agents and employees were approved:-

• Enhancement of the gratuity limit from Rs 3 lakh to Rs 5 lakh for LIC agents. It will bring substantial improvements to the working condition and benefits of LIC agents.
• Enabling reappointed agents to be eligible for renewal commission, thereby providing them with increased financial stability. LIC agents are currently ineligible for renewal commission on any business completed under the previous agency.
• The term insurance cover for the agents has been expanded from the existing range of Rs. 3,000-10,000 rupees to Rs. 25,000-1,50,000. This term insurance enhancement will significantly benefit the families of deceased agents, providing them with a more substantial welfare benefit.
• Family pension at a uniform rate of @30% for the welfare of the families of LIC employees.

These welfare measures will benefit over 13 lakh agents and over 1 lakh regular employees who play a critical role in the growth of LIC and the deepening of insurance penetration in India.