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MoF increases Gratuity Limit and Term Insurance Cover for LIC agents

ministry of finance

ministry of finance

On 18-9-2023, the Ministry of Finance approved a series of welfare measures for the benefit of Life Insurance Corporation of India (‘LIC’) agents and employees with an aim to benefit more than 13 lakh agents and more than 1 lakh regular employees.

Key Points:

  1. The welfare measures relate to amendments to:

    • LIC (Agents) Regulations, 2017;

    • Enhancement of Gratuity Limit;

    • Uniform Rate of Family Pension.

  2. Approved welfare measures:

    • Enhancement of gratuity limit from Rs. 3 lakhs to Rs. 5 lakhs which will improve the working conditions and benefits of LIC agents.

    • Enabling reappointed agents to be eligible for renewal commission which will increase their financial stability.

    • Term insurance cover has been raised from Rs. 3,000- 10,000 to Rs. 25,000- 1.5 lakhs which will benefit the families of deceased agents.

    • Family pension has been fixed at a uniform rate of 30% for the welfare of the families.

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