Page 12 - Insurance Times October 2023

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LIC employees, agents to LIC launches campaign for lapsed policies
benefit from finmin steps LIC has launched a special campaign to revive lapsed policies at a discounted
The finance ministry announced a premium. The campaign, to mark the insurer's 67th anniversary, will run
series of steps that will benefit around from September 1 to 30.
one lakh employees of LIC and 13 lakh During the campaign week, agents and employees of the corporation will
agents of the state-run company. reach out to holders of lapsed policies with the terms of revival.
In the package for employees which is "We express our gratitude to policyholders, shareholders and employees for
seen as a precursor for public sector their unwavering support and commitment throughout the years. LIC's
bank employees, the finance ministry journey has been nothing short of extraordinary - we owe our success to
will allow an increase in the gratuity the trust and confidence reposed in us by our loyal stakeholders," said
limit from Rs 3 lakh to Rs 5 lakh for LIC Siddhartha Mohanty, chairperson LIC.
agents. "It will bring substantial
improvements to the working For the spouses of retired employees, titled 'Demystifying the Consumer's
conditions and benefits of LIC agents," the government permitted family Illusions,' surveyed 5,000 respondents
an official statement said. pension at a uniform rate of 30%. "The across 41 cities in India and uncovered
welfare measures are related to the critical insights.
It also provided for enabling
reappointed agents to be eligible for amendments to LIC (Agents) Some of the key findings of this study
Regulations, 2017, Enhancement of
renewal commission, a move that will are that 71 per cent of uninsured
Gratuity Limit, and Uniform Rate of
provide them with increased financial respondents recognise the absolute
stability. Currently, LIC agents are not Family Pension among others," the necessity of insurance for achieving
government said.
eligible for renewal commission on any 'financial immunity'.
business completed under the old As many as 83 per cent of insured
agency, the statement said. SBI Life Insurance finds big
individuals acknowledge the critical
Further, the term insurance cover for gap in Indians' financial role of insurance in attaining financial
the agents has been expanded from preparedness resilience.
the existing range of Rs 3,000-10,000
A study by SBI Life Insurance, Despite 68 per cent believing they are
to Rs 25,000-1.5 lakh. "This
conducted in collaboration with adequately insured, only 6 per cent
enhancement in term insurance will
Deloitte, highlights a concerning gap in have sufficient coverage.
significantly benefit the families of
the financial preparedness of Indian
deceased agents, offering them a Shockingly, 47 per cent of insured
more substantial welfare benefit," the consumers. individuals surrendered their life
statement said. The Financial Immunity Study 3.0, insurance policies in the last five years.

12 October 2023 The Insurance Times