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Ministry of Finance approves Welfare Measures Increase in Gratuity Limit and a Uniform Rate of 30% Family Pension for LIC Employees

September 19, 2023

Ministry of Finance approves welfare measures for LIC agents and employees

Welfare measures include increase in gratuity limit, eligibility for renewal commission, term insurance cover for LIC agents; and a uniform rate of family pension for LIC employees

18 SEP 2023 2:04PM by PIB Delhi

The Ministry of Finance today approved a series of welfare measures for the benefit of Life Insurance Corporation of India (LIC) agents and employees. 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 following welfare measures w.r.t. LIC agents and employees were approved:

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  • Enhancement of the gratuity limit 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.
  • Enabling reappointed agents to be eligible for renewal commission, thereby providing them with increased financial stability. Currently, LIC agents are not eligible for renewal commission on any business completed under the old agency.
  • The term insurance cover for the agents has been expanded from the existing range of Rs. 3,000-10,000 rupees 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.
  • Family pension at a uniform rate of @30% for the welfare of the families of LIC employees.

More than 13 lakhs agents and more than 1 lakh regular employees, who play a pivotal role in the growth of LIC and deepening of insurance penetration in India, will benefit from these welfare measures.

Source: PIB

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