On September 18, 2023, the Press Information Bureau (PIB), released an official statement regarding LIC agents welfare measures, which was expected to benefit over 1.3 lakh LIC agents all across India. The press release changed the LIC landscape forever. Since then, it has been noticed that people have been actively pursuing LIC careers as agents.
So, if you’re confused about whether to pursue a career in LIC or not, then this blog is going to significantly help you. It highlights all the Government benefits you’re going to get if you become a LIC agent.
Table of Contents
What Are the Recent LIC Agents Welfare Measures Taken by the Government?
Here’s a list of the most recent LIC agents welfare measures as taken by the Government:
Gratuity Limit Enhancement
The gratuity limit for the LIC agents was enhanced from ₹3 lakh to ₹5 lakh. This will significantly impact the working conditions of the LIC agents positively. Now, what is gratuity? Gratuity showcases the financial gratefulness of the employer towards his/her employees.
As a result, the employer tends to give a financial token to the employee, based on the minimum number of working years (usually 5 years). A gratuity is usually presented on a one-time payment basis, after the employee’s death or resignation. A higher gratuity signifies a higher financial safety.
Eligibility for Renewal Commission
The reappointed LIC agents are now eligible for the renewal commission based on the policies sold in their previous agency. Let’s break this down in very simple terms. Imagine you’re a LIC agent, and one day you decide to leave LIC. A few months later, you again decided to join LIC.
Now, previously what would have happened was you would have lost out on the commissions that you earned by selling the policies in your previous agency, i.e., after joining afresh. But, now, you’re eligible to reclaim that previous commission as you join LIC freshly. Consider this one of the most unique LIC agents welfare measures taken by the Government of the Finance Department.
Expansion of Term Insurance Cover
The term insurance cover for the LIC agents was expanded from ₹3,000 – ₹10,000 to ₹25,000 – ₹1,50,000. This made a huge difference for all the LIC agents across India. In this context, the PIB has asserted that “this enhancement in term insurance will significantly benefit the families of deceased agents, offering them a more substantial welfare benefit”.
Now, what is term insurance cover? It is more like life insurance. It offers financial coverage for the policyholder for a certain period of time, and upon that, the financial coverage can be claimed by the policyholder’s beneficiary. To put it simply, the relevant expansion has evoked a sense of lifelong security for the LIC agents.
Uniform Family Pension Rate
All the other LIC agents welfare measures were made specifically targeting the LIC agents only. But, this one is for the LIC employees. The uniform family pension rate for all the LIC employees was set at 30% of the employee’s last drawn salary. This was to provide support to the deceased employee’s dependent family members. Such predictability, in turn, evoked a sense of lifelong security within the LIC employees as well.
Impact of The LIC Agents Welfare Measures on Employees/Agents
| Benefits | Description |
| Increased financial security | Benefits like the gratuity limit enhancement and the expansion of the term insurance cover significantly improved the financial security quotient for the LIC agents. |
| Enhanced agent retention and recruitment | Financial reward sits at the top of the motivation hierarchy. Such financial schemes possess the potential to drive significant agent retention. Such schemes can further attract good talents. |
| Improved job satisfaction and morale | Financial motivators further improve the job satisfaction quotient as well as employee/agent morale. This can lead to enhanced performance. |
| Greater sense of security for families | Financial coverage for the family can go a long way, especially in India, as it has a collectivistic society. It enhances the overall security quotient of the employees. |
Impact of The LIC Agents Welfare Measures on LIC’s Business
Not only the agents or the employees, but the LIC agents welfare measures also benefited LIC’s business significantly. The relevant advantages are as follows:
Benefits | Description |
Increased agent productivity and sales | Secured and productive agents have the potential to generate more sales and eventual profit for LIC. |
Stronger agent loyalty and commitment to LIC | The financial schemes and benefits can create a strong agent loyalty for LIC, driving more brand commitments as well. |
Improved brand image and reputation as an employer | By advancing the above-mentioned agent benefit schemes, LIC has successfully created a strong brand reputation and brand image as an employer. |
Potential for attracting higher-caliber agents | All the above-mentioned factors collectively have enhanced LIC’s chances of attracting potent and high-caliber agents and employees. |
Conclusion & Key Takeaways
The LIC agents welfare measures have been a game-changer. As mentioned previously, not only does it possess the potential to benefit 1.3 lakh LIC agents, but also has the strength of positively impacting approximately over 100,000 regular LIC employees.
It can further influence the growth of the LIC business as well. Let’s break down the key Government schemes once again at a glance – (i) gratuity limit enhancement, (ii) eligibility for renewal commission, (iii) expansion of term insurance cover, and (iv) uniform family pension rate.
