The government announced a series of welfare measures for Life Insurance Corporation of India (LIC) agents and employees. These measures include enhancement of gratuity limit, renewal commission for reappointed agents, term insurance cover and family pension.
According to the Ministry of Finance, over 13 lakh agents and over 1 lakh regular employees will benefit from these welfare measures as LIC looks to deepen the penetration of insurance in the country.
As per the welfare measures, the gratuity limit has been increased from Rs 3 lakh to Rs 5 lakh for LIC agents. “It will bring substantial improvements to the working condition and benefits of LIC agents,” said the ministry in a statement.
LIC agents are not eligible for a renewal commission on any business completed under the old agency currently. But with the new measures, reappointed agents will be eligible for renewal commission. The government said that this will provide agents with increased financial stability.
Moreover, term insurance cover for agents has been expanded from the current Rs 3,000-10,000 to Rs 25,000-1,50,000. “This enhancement in term insurance will significantly benefit the families of deceased agents, offering them a more substantial welfare benefit,” the ministry added.
The government said that family pension will be offered at a uniform rate of 30 per cent for the “welfare of LIC employees”.
Separately, LIC reported a multifold jump in net profit in the April-June quarter of Rs 9,544 crore, from the net profit of Rs 683 crore in the year-ago period. The total income increased to Rs 1,88,749 crore for the June quarter as against Rs 1,68,881 crore in the year-ago period, LIC said in a regulatory filing. However, the first-year premium for the reporting quarter came down to Rs 6,811 crore as against Rs 7,429 crore in the year-ago period.