Gratuity Limit Increased
Employees and agents of the Life Insurance Corporation of India (LIC) have good news to look forward to. The Indian government has announced several measures, including an increase in the gratuity limit from INR 3 lakhs to INR 5 lakhs for agents. The Financial Ministry stated that these steps would bring a significant improvement in the working conditions and benefits for LIC agents.
Eligibility for Renewal Commissions
Previously, LIC agents were not eligible for renewal commissions under their old agencies. Now, reappointed agents will be eligible for these commissions, providing them with increased financial stability.
Term Insurance Coverage Extended
The government has also increased the term insurance coverage for agents. The new coverage has been raised from the existing INR 3,000-10,000 to INR 25,000-1,50,000. According to sources, this increment in term insurance will provide substantial financial assistance to the families of deceased agents.
Uniform Family Pension at 30% Rate
The government has also declared that the family pension will be offered at a uniform rate of 30% for the welfare of LIC employees.
Stellar Quarterly Results
LIC has shown impressive performance in the recent quarterly results. The net profit for the April-June quarter showed a multi-fold increase, standing at INR 9,544 crores, compared to INR 683 crores a year ago. According to a report by Business Today, the total income for the June quarter increased to INR 1,88,749 crores, compared to INR 1,68,881 crores during the same period last year.
|Parameter||Old System||New System||Beneficiaries|
|Gratuity Limit||INR 3 Lakhs||INR 5 Lakhs||Agents|
|Renewal Commission||Not Eligible||Eligible for reappointed agents||Agents|
|Term Insurance Coverage||INR 3,000 – 10,000||INR 25,000 – 1,50,000||Agents|
|Family Pension Rate||Varied||Uniform 30%||Regular Employees|
|Net Profit (April-June)||INR 683 Crores||INR 9,544 Crores||Company|
|Total Income (April-June)||INR 1,68,881 Crores||INR 1,88,749 Crores||Company|
The financial benefits announced by the government are expected to have a positive impact on over 13 lakh agents and more than 1 lakh regular employees of LIC, as it aims to deepen its footprint in the insurance sector in India.