 "Finance ministry raises gratuity limit and insurance cover for LIC agents")
The finance ministry on Monday approved the enhancement of gratuity limit from Rs 3 lakh to Rs 5 lakh for Life Insurance Corporation (LIC) agents benefitting more than 1.3 million of them.
The ministry also increased the term insurance cover for agents from the existing Rs 3,000-10,000 to Rs 25,000-1,50,000.
“This enhancement in term insurance will significantly benefit the families of deceased agents, offering them a more substantial welfare benefit,” the ministry said in a statement.
The ministry also enabled reappointed agents to be eligible for renewal commissions, thereby providing them with increased financial stability. Currently, LIC agents are not eligible for renewal commission on any business completed under the old agency.
With regard to LIC employees, the ministry has also approved family pension at a uniform rate of 30 per cent for the welfare of families. This demand was raised by various public insurance pensioner bodies to increase and bring uniformity in the family pension rate.
In the past, LIC Agents’ Association had demanded that gratuity be increased from Rs 3 lakh to Rs 20 lakh.
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“More than 1.3 million agents and more than 0.1 million 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.
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.