The Ministry of Finance announced a series of welfare reforms for the benefit of Life Insurance Corporation of India (LIC)’s agents and employees. The ministry revealed via a social media post on X (formerly known as Twitter) on Monday that it has approved some changes for the welfare of LIC agents and employees regarding gratuity limit, family pension, insurance coverage, and other things.
The ministry in it’s official release stated that these reforms are related to amendments to LIC (Agents) Regulations, 2017, Enhancement of Gratuity Limit, and Uniform Rate of Family Pension among others.
👉 Ministry of Finance @FinMinIndia approves welfare measures for LIC agents and employees @LICIndiaForever
👉 Welfare measures include:
✅ Increase in gratuity limit
✅ Eligibility for renewal commission
✅ Term insurance cover, and
✅ Uniform rate of family pension for LIC… pic.twitter.com/tEzLiQPMsq
— Ministry of Finance (@FinMinIndia) September 18, 2023
The welfare reforms include an amendment to the gratuity limit for LIC agents. Under the approved changes, the finance ministry has increased the gratuity limit for the insurance company’s agents from Rs 3 lakh to Rs 5 lakh. This change has been adopted by the ministry to help bring substantial improvements in the working conditions and benefits of LIC agents.
Another change approved by the ministry involves helping the agents secure financial stability. The release states that reappointed agents will be eligible for renewal commission. Currently, LIC agents are not permitted to renew commissions on any business completed under the old agency.
A major change has been introduced in the term insurance coverage for the insurer’s agents. The release notes that the term insurance cover for LIC agents has been increased from the existing range of Rs 3,000-10,000 to Rs 25,000-1,50,000. The ministry hopes to help provide enhanced coverage and benefits to the families of deceased agents, facilitating them with a more significant welfare benefit.
Further, the finance ministry has set a uniform rate of 30 per cent for family pension to ensure the welfare of families of LIC employees. The ministry further noted that these welfare measures have been introduced to help over 13 lakh agents and more than 1 lakh regular employees, associated with LIC. It added that these people have played a significant role in the growth of India’s largest insurance company and helped boost insurance penetration in the country.
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