LIC Notifies Hike in Gratuity Limit to Rs 5 lakh from Rs 3 lakh for Agents

Current Context: The Life Insurance Corporation (LIC) of India has indeed notified an increase in the gratuity limit for its agents from Rs 3 lakh to Rs 5 lakh.

• This increase was effected by amending the Life Insurance Corporation of India (Agents) Regulations, 2017.
• These regulations may be called the Life Insurance Corporation of India (Agents) Amendment Regulations, 2023, and they came into force on the date of their publication in the Official Gazette dated December 6, 2023.
• This move is part of a series of welfare measures approved by the Finance Ministry in September 2023, which included enhancement of the gratuity limit and family pension, for the benefit of LIC agents and employees.
• The ministry had enhanced the gratuity limit from Rs 3 lakh to Rs 5 lakh for LIC agents aimed at bringing substantial improvements to the working conditions and benefits for them.

Question:

Q.1 What is the new gratuity limit for LIC agents as notified by the Life Insurance Corporation (LIC) of India?
a. Rs 1 lakh
b. Rs 3 lakh
c. Rs 5 lakh
d. Rs 7 lakh