LIC Agents, Employees to Get Increased Gratuity Limit, 30% Uniform Rate of Family Pension

The government has decided to increase incentives for Life Insurance Corporation of India (LIC) agents and employees, including an increase in gratuity limit, renewal commission for reappointed agents, term insurance cover, and family pension. According to the Ministry of Finance, over 1.3 million agents and over 100,000 regular employees will benefit from the measures.

The announcement comes as LIC looks to deepen the penetration of insurance in the country. The gratuity limit for LIC agents has been raised from Rs. 3 lakh to Rs. 5 lakh. The ministry believes that this will significantly enhance the working conditions of the agents. With the new measures, reappointed agents can receive renewal commission, providing them with increased financial stability.

Moreover, the term insurance cover for agents has been enhanced from the current Rs. 3,000-10,000 to Rs. 25,000-1,50,000. According to the government”s statement, the increase in term insurance will significantly benefit the families of deceased agents, offering them a more substantial welfare benefit.

The government also announced that a uniform rate of 30% family pension will be offered for the “welfare of LIC employees.” In the June quarter, LIC registered a multifold jump in net profit, rising from Rs. 683 crore to Rs. 9544 crore. Total income also jumped from Rs. 168,881 crore to Rs. 1,88,749 crore. However, the company saw first-year premium being dragged down from Rs. 7429 crore to Rs. 6811 crore.