The finance ministry announced a series of steps that will benefit around one lakh employees of LIC and 13 lakh agents of the state-run company.
In the package for employees which is seen as a precursor for public sector bank employees, the finance ministry will allow an increase in the gratuity limit from Rs 3 lakh to Rs 5 lakh for LIC agents. “It will bring substantial improvements to the working conditions and benefits of LIC agents,” an official statement said.
It also provided for enabling reappointed agents to be eligible for renewal commission, a move that will provide them with increased financial stability. Currently, LIC agents are not eligible for renewal commission on any business completed under the old agency, the statement said.
Further, the term insurance cover for the agents has been expanded from the existing range of Rs 3,000-10,000 to Rs 25,000-1.5 lakh. “This enhancement in term insurance will significantly benefit the families of deceased agents, offering them a more substantial welfare benefit,” the statement said.
For the spouses of retired employees, the government permitted family pension at a uniform rate of 30%. “The welfare measures are related to the amendments to LIC (Agents) Regulations, 2017, Enhancement of Gratuity Limit, and Uniform Rate of Family Pension among others,” the government said.