The over 100,000 employees and nearly 1.3 million agents of the Life Insurance Corporation of India (LIC) will have something to cheer about as the Finance Ministry on Monday approved welfare measures including hike in family pension and gratuity limits.
According to a statement from the finance ministry, the tip limit for agents has been increased from Rs 3 lakh to Rs 5 lakh. “This will bring about substantial improvements in the working conditions and welfare of LIC agents,” the statement said. It also approved a proposal to make re-appointed agents eligible for renewal commission, thereby providing them with higher Financial stability. Currently, LIC agents are not eligible for renewal commission on any business done under the old agency, the ministry said.
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It was further observed that LIC acquired a 51% majority stake in IDBI Bank through a preferential allotment of shares on January 21, 2019
Another measure provides for expansion of term insurance cover for agents to Rs 25,000-1,50,000 from the existing Rs 3,000-10,000. “The enhancement to term insurance will significantly benefit the dependents of deceased agents, providing them with more generous benefits,” the statement added.
An important measure is related to family pension, where LIC employees will now receive family pension at a flat rate of 30 per cent. Previously, this limit was 15%.
The welfare measures involve amendments to the LIC (Agents) Regulations 2017, increase in tipping limit, flat rate for family pension, etc.
