New Delhi. There is good news for about one lakh employees and 13 lakh agents of Life Insurance Corporation of India (LIC). LIC has increased the gratuity and pension.
Notification has also been issued in this regard. Besides, LIC has also informed the stock market about this. The new rules have come into effect from December 6. It is noteworthy that in September 2023, the Finance Ministry had made several announcements for LIC agents and employees.
The Finance Ministry had announced increase in gratuity limit and family pension and restoration of renewal commission for the benefit of LIC agents and employees. Now a notification has been issued to increase gratuity from Rs 3 lakh to Rs 5 lakh, increase the rate of family pension to 30 percent and reintroduce renewal commission.
Term insurance cover also increased
According to a report the term insurance cover for agents was Rs 3,000 to Rs 10,000, which has been increased to Rs 25,000-1,50,000. This will provide better security cover to the families of the agents. Approval has also been given to give family pension at the rate of 30 percent to the families of LIC employees.
Renewal commission reinstated
By making changes in the LIC (Agents) Rules 2017, not only has the gratuity limit for LIC agents been increased from Rs 3 lakh to Rs 5 lakh, but the renewal commission has also been restored. This reinstatement will provide a lot of relief to the agents. Now LIC has considered the re-appointed agents also entitled to receive renewal commission. As per the current LIC rules, agents are not entitled to renewal commission on any business under the old agency.
Important contribution of agents in increasing business
LIC is the largest insurance company in the country. LI has an agent network across the country. About 13 lakh agents of LIC have an important contribution in increasing the business of the company. The market capitalization of LIC is around Rs 5 lakh crore.
