In a significant move, the Finance Ministry has increased the gratuity limit for LIC agents from Rs 3 lakh to Rs 5 lakh.
This decision aims to enhance the working conditions and benefits for LIC agents, improving their financial stability.
Hired agents will now be eligible for renewal commission, a significant enhancement compared to the previous setup.
Enhanced Insurance Cover for Agents
The Ministry has also raised the limit for agents’ term insurance cover from Rs 3,000-10,000 to Rs 25,000-1,50,000.
This increase will provide more substantial welfare benefits to the families of agents who have passed away.
Uniform Family Pension Benefit
For LIC employees, the Ministry has approved a uniform family pension rate of 30 percent. This measure is designed to improve the welfare of employees’ families.
More than 13 lakh agents and over one lakh regular employees will benefit from these welfare measures, contributing to LIC’s growth and the expansion of insurance coverage in India.
LIC, founded in 1956 with an initial capital of Rs 5 crore, now boasts assets totaling Rs 45.50 lakh crore and a life fund of Rs 40.81 lakh crore as of March 31, 2023.