STATE TIMES NEWS
MUMBAI: Over 1 lakh employees and nearly 13 lakh agents of the Life Insurance Corporation of India (LIC) will have something to cheer, as the Finance Ministry on Tuesday approved welfare measures, including enhancing the family pension and gratuity limit.
Ministry of Finance raised the gratuity limit for the agents of the insurer from Rs 3 lakh to Rs 5 lakh.
Another important change is the eligibility of reappointed agents to receive renewal commissions.
Previously, LIC agents were ineligible for renewal commission on any business completed under the old agency. This modification aims to provide enhanced financial stability to reappointed agents.
Furthermore, the term insurance cover for the agents has been extended from the existing range of Rs 3,000-10,000 to Rs 25,000-1,50,000.
This expansion of coverage will benefit the families of deceased agents, providing them with more substantial welfare support.
In addition, the welfare measures include the introduction of a uniform rate of 30 per cent for family pensions, ensuring equitable benefits for the families of LIC employees.
“More than 13 lakh agents and more than 1 lakh 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,” said the release.
Siddhartha Mohanty, Chairperson, LIC of India thanked the Finance Minister for extending the benefits of Agents and employees of Life Insurance Corporation of India. This move will boost the morale of LIC employees and agents of the Corporation, he said.