The enhanced term insurance cover will also provide much-needed financial support to the families of deceased agents.
NEW DELHI: The Ministry of Finance has approved a slew of welfare measures for Life Insurance Corporation (LIC) agents and employees, including a significant increase in the gratuity limit for agents from Rs 3 lakh to Rs 5 lakh.
Other measures announced on Tuesday include a uniform family pension rate of 30% for LIC employees, expansion of the term insurance cover for LIC agents from Rs 3,000-10,000 to Rs 25,000-1,50,000, and enabling reappointed agents to be eligible for renewal commission.
The government said the measures are part of amendments to the LIC (Agents) Regulations, 2017, and are aimed at benefiting over 13 lakh agents and 1 lakh employees of the state-run insurance company.
“These individuals play a pivotal role in the growth of LIC and the deepening of insurance penetration in India,” the government said in a statement.
The increase in the gratuity limit is a major boon for LIC agents, who play a crucial role in selling insurance products and expanding the company’s reach. The enhanced term insurance cover will also provide much-needed financial support to the families of deceased agents.
The other welfare measures are also significant, as they will provide LIC employees and agents with a more secure future. For example, the uniform family pension rate of 30% will ensure that the families of deceased employees receive a consistent income. The extension of renewal commission eligibility to reappointed agents will also provide them with an additional source of income.