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Over 1 lakh employees and nearly 13 lakh agents of the Life Insurance Corporation of India (LIC) will have something to cheer, as the Finance Ministry on Monday approved welfare measures including enhancing the family pension and gratuity limit.
According to a statement by the Finance Ministry, gratuity limit for agents have been raised to ₹5 lakh from ₹3 lakhs. “It will bring substantial improvements to the working condition and benefits of LIC agents,” the statement said. It also approved a proposed to enable reappointed agents to be eligible for renewal commission, thereby providing them with increased financial stability. Currently, LIC agents are not eligible for renewal commission on any business completed under the old agency, the Ministry said.
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It was further observed that LIC acquired majority stake of 51 per cent in IDBI Bank on January 21, 2019, by way of preferential allotment of equity shares
Another measure prescribes the term insurance cover for the agents expanded from the existing range of ₹3,000-10,000 rupees to ₹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,” added the statement.
One important measure is related with family pension which will now be available at a uniform rate of 30 per cent for LIC employees. Earlier, this limit was 15 per cent.
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.
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