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.

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LIC Agents: Life Insurance Corporation of India (LIC) has given good news to its agents. Gratuity of LIC agents has increased. Now the gratuity of LIC employees has increased from Rs 3 lakh to Rs 5 lakh. The government has also issued a notification for this. Public sector company LIC has also informed the stock market about this. These new rules have come into effect from 6th December. In the month of September, the Finance Ministry had made several announcements for LIC agents and employees.

Announced in September

The government has increased the gratuity limit in September. Apart from this, the conditions related to renewal commission and term insurance cover were also changed. For this, changes have been made in LIC (Agents) Rules 2017 etc. Gratuity limit for LIC agents has been increased from Rs 3 lakh to Rs 5 lakh.

Information given to stock market

The Finance Ministry in September had approved several welfare measures for the benefit of LIC agents and employees, including increase in gratuity limit and family pension. Restoration of renewal commission will provide a lot of relief to the agents. At present he was not able to take advantage of any business done by the old agency. This will increase their income significantly.

Agents will get renewal commission

LIC has also considered the re-appointed agents 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. 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. The Ministry has approved giving family pension at the rate of 30 percent to the families of LIC employees.

13 lakh LIC agents will benefit

More than 13 lakh agents and more than 1,00,000 employees of LIC will benefit from the new rules. These agents play an important role in increasing the business of LIC.

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