Centre announces new welfare measures for LIC agents and employees
What's the story
The Indian government has announced a slew of welfare measures for over 13 lakh agents and one lakh regular employees of Life Insurance Corporation of India (LIC). These measures include a rise in gratuity limit, a uniform rate of family pension, eligibility for renewal commission, and term insurance cover. The aim is to provide financial stability and enhanced benefits to those who play an intrinsic role in LIC's growth and insurance penetration in India.
Details
Amended regulations enhance financial stability
The welfare measures follow amendments to the LIC (Agents) Regulations, 2017, which proposed enhancements to the gratuity limit and a uniform rate of family pension, among other benefits. The amendments will provide increased financial stability to agents who will now be eligible for renewal commissions. Till now, LIC agents were ineligible for renewal commission on any business completed under the old agency.
Measure
Gratuity limit raised to Rs. 5 lakh
The gratuity limit for LIC agents has been increased from Rs. 3 lakh to Rs. 5 lakh, providing them with greater financial stability. Separately, term insurance cover for LIC agents has been expanded from Rs. 3,000-10,000 to Rs. 25,000-1.5 lakh, offering substantial welfare benefits to the families of deceased agents. The family pension will now be paid at a uniform rate of 30%.