On September 18, the Ministry of Finance approved several welfare measures aimed at benefiting Life Insurance Corporation of India (LIC) agents and employees. These measures include amendments to LIC (Agents) Regulations, 2017, an enhancement of the gratuity limit, and the introduction of a uniform rate of family pension, among others.
Key highlights of the approved measures include:
Enhancement of Gratuity Limit: The gratuity limit for LIC agents has been increased from Rs 3 lakh to Rs 5 lakh. This change is expected to significantly improve the working conditions and benefits of LIC agents.
Renewal Commission for Reappointed Agents: Reappointed agents will now be eligible for renewal commission, providing them with increased financial stability. Previously, LIC agents were not eligible for renewal commissions on business completed under the old agency.
Expanded Term Insurance Cover: Term insurance cover for LIC agents has been expanded from the existing range of Rs 3,000-10,000 to Rs 25,000-1,50,000. This expansion will benefit the families of deceased agents by providing them with more substantial welfare benefits.
Uniform Family Pension: Family pension will now be provided at a uniform rate of 30 percent for the welfare of LIC employees’ families.
These welfare measures are expected to benefit more than 13 lakh agents and over one lakh regular employees of LIC. The move is seen as an effort to improve the working conditions and financial stability of LIC agents, who play a crucial role in the growth and penetration of insurance in India.
LIC has been facing increased competition in the insurance sector, and its market share has been declining. The government’s decision to implement these welfare measures is aimed at ensuring the satisfaction and well-being of LIC agents, who are vital to the company’s success.
The LIC Agents Regulations, 2017, have been amended accordingly to enact these changes. Additionally, the introduction of a uniform family pension rate aligns with similar measures already enacted for banks and aims to provide consistent support to LIC employees’ families.
Read More: https://cioworldindia.com/