Sep 18, 2023 04:07 PM IST
The finance ministry on Monday unveiled a series of welfare measures for the benefit of agents and employees of the Life Insurance Corporation of India (LIC).
The finance ministry on Monday unveiled a series of welfare measures for the benefit of agents and employees of the Life Insurance Corporation of India (LIC). According to a statement by the ministry, the measures are related to the amendments to LIC (Agents) Regulations, 2017, enhancement of the gratuity limit, and uniform rate of family pension among others.
“More than 13 lakh 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,” the ministry said in the statement.
List of LIC measures approved by finance ministry:
- Enhanced gratuity: According to an official release, there will be an enhancement of the gratuity limit to ₹5 lakh from the current 3 lakh for the LIC agents. This will bring substantial improvements to the working conditions and benefits of LIC agents, the ministry said.
- Eligibility for renewal commission: In order to provide the LIC employees and agents with increased financial stability, the finance ministry has enabled all reappointed agents to be eligible for renewal commission. Currently, LIC agents are not eligible for renewal commission on any business completed under the old agency.
- Expanding term insurance cover: The ministry has expanded the term insurance cover for the LIC agents and employees from the existing range of ₹3,000-10,000 to ₹25,000-1,50,000. According to the ministry, 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: The government has introduced the family pension at a uniform rate of 30 percent for the welfare of the families of the LIC employees.
LIC presents dividend cheque to Nirmala Sitharaman
On Thursday, the LIC presented a dividend cheque of ₹1,831.09 crore to finance minister Nirmala Sitharaman. In a picture posted by the finance minister’s office on X, formerly known as Twitter, LIC chairman Siddhartha Mohanty can be seen presenting the dividend cheque as the government’s share of dividend in the presence of department of financial services additional secretary MP Tangirala.
Notably, the dividend was approved by the shareholders in the annual general meeting held on August 22.