On September 1, BJP MP GVL Narasimha Rao wrote a letter to the Hon’ble Prime Minister Shri Narendra Modi Ji announcing welfare measures like enhancement of Gratuity and Term Insurance for LIC agents. MP GVL has also repeatedly raised earlier in Parliament seeking early announcement of pending welfare measures for LIC agents and employees.
On September 16, in a general council meeting of the Life Insurance Agents Federation of Indoa (LIAFI), MP GVL Narasimha Rao announced that he had brought this issue before the Hon’ble PM for his attention.
In response to MP GVL’s efforts, in a big announcement today, the Ministry of Finance, Government of India has approved welfare measures for LIC agents and employees including increase in gratuity limit, eligibility for renewal commission, term insurance cover and a uniform rate of family pension for 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 with respect to LIC agents and employees were approved:
1) 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.
2) Enabling reappointed agents to be eligible for renewal commission, thereby providing them with increased inancial stability. Curently, LIC agents are not eligible for renewal commission on any business completed under the old agency.
3) 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.
4) 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.
Expressing satisfaction at the immediate resolution of the pending welfare decisions, MP GVL Narasimha Rao thanked Hon’ble Prime Minister Shri Narendra Modi Ji for his immediate intervention that would help over 15 lakh families of the LIC Parivar.