On 18 September 2023, the Ministry of Finance granted approval to a set of welfare initiatives aimed at benefiting the agents and staff of the Life Insurance Corporation of India (LIC). These measures include an increase in the gratuity limit, extending eligibility for renewal commissions, and providing term insurance coverage.
The Finance Ministry has raised the gratuity limit for LIC agents from Rs 3 lakh to Rs 5 lakh. It has also made reappointed agents eligible to receive renewal commissions. Currently, LIC agents do not qualify for renewal commissions on any business conducted under their previous agency.
These measures are associated with modifications made to the LIC (Agents) Regulations of 2017, including the enhancement of the gratuity limit and the introduction of a uniform rate for family pensions, among other changes.
Additionally, the Ministry has increased the term insurance coverage for agents from the previous range of Rs 3,000-10,000 to Rs 25,000-1,50,000. This change is expected to provide substantial benefits to the families of deceased agents.
Furthermore, the Ministry has approved a uniform rate of 30 per cent for family pensions for the families of LIC employees.
The Ministry has also emphasised that these welfare measures will benefit more than 1.3 million agents and over one lakh regular employees, who play a crucial role in LIC’s growth and the expansion of insurance coverage in India.