Good news for Life Insurance Corporation of India (LIC) agents! LIC has increased the amount of money agents can receive, called gratuity, from Rs 3 lakh to Rs 5 lakh.
This change, effective from December 6, was made through an update in the LIC (Agent) Regulation, 2017.
Even agents who are re-appointed are now eligible for Renewal Commission. These decisions will bring relief to the agents and their families.
LIC shared this information with the stock market on Friday. The Finance Ministry approved these changes in September to benefit LIC agents and employees.
The renewal commission will help agents earn more by allowing them to benefit from previous business. This change is significant as it increases their income.
The Finance Ministry aims to improve the workload and benefits for LIC agents by raising the gratuity limit.
LIC, a public sector company, has over one lakh employees and more than 13 lakh agents nationwide, all of whom will benefit from this decision.
In September, LIC also increased the term insurance cover for agents from Rs 3,000 to Rs 10,000 to a new range of Rs 25,000 to Rs 1,50,000.
Additionally, a family pension at a uniform rate of 30 percent was announced for the welfare of LIC agents’ families.
It’s important to note that only 5 percent of India’s population has insurance, while 95 percent do not prioritize it.
This information was revealed in a recent report by the Insurance Regulatory and Development Authority of India (IRDAI).
IRDAI Chairman Devashish Panda has urged insurance companies to make greater efforts, acknowledging that agents play a crucial role in increasing insurance coverage in the country.
