The finance ministry on Monday approved a series of welfare measures for the benefit of the employees and agents of state-run Life Insurance Corporation of India (LIC).
More than 1.3 million agents and over 100,000 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, the ministry said in a release.
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.
Under the welfare measures approved was an enhancement of the gratuity limit from Rs. 300,000 to Rs. 500,000 for the agents.
The ministry has approved renewal commission for reappointed agents, 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 term insurance cover for the agents has been expanded from the existing range of Rs. 3,000-10,000 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, the release said.
Family pension at a uniform rate of 30% for the welfare of the families of the employees was also approved.
Notably, for the last financial year, the life insurer’s standalone net profit stood at Rs. 36,397.39 crore. As on March 31, 2023, its asset under management (AUM) increased by 7.65% year-on-year to Rs. 43.97 trillion.
LIC retained its market leadership with a share of 62.58% in terms of first year premium income (FYPI) and 71.76% in terms of number of policies (NOP) for FY23.
The company last week presented a dividend cheque of Rs. 1831.09 crore to finance minister Nirmala Sitharaman as the government’s share of dividend for the last financial year.
The life insurance major declared a final dividend of Rs. 3 per equity share for the financial year ended on March 31, 2023. Currently, the government holds a 96.50% stake in LIC.