Life Insurance Corporation of India (LIC) net profit fell 50% to Rs 7,925 crore in Q2 due to reduced income. Ministry of Finance authorized LIC agent and employee welfare measures, including gratuity limit and term insurance coverage increases…
LIC’s net profit fell 50% to Rs 7,925 crore for the quarter ended September 30 on Friday due to reduced income. LIC declared a Rs 15,952 crore net profit last year in a regulatory filing.
Net premium income dropped to Rs 1,07,397 crore in the second quarter of the current fiscal from Rs 1,32,631.72 crore.
LIC reported a September quarter income of Rs 2,01,587 crore, down from Rs 2,22,215 crore.
Centre authorizes LIC agent, employee measures
The Ministry of Finance authorized LIC agent and employee welfare measures in September, including gratuity ceiling increases and term insurance coverage expansion.
An official announcement states that the new welfare measures will help over 13 lakh LIC agents and 1 lakh regular workers. The initiatives include modifications to the LIC (Agents) Regulations, 2017, Gratuity Limit Enhancement, and Uniform Family Pension Rate.
The Finance Ministry raised the gratuity maximum for LIC agents from Rs 3 lakh to R5 lakh, improving their working conditions and benefits. Reappointed agents can now renew commission, which will boost their finances.
Conclusion
LIC’s net profit fell 50% to Rs 7,925 crore for the quarter ended September 30, mostly due to reduced income. The insurer earned Rs 15,952 crore last year. Net premium income fell to Rs 1,07,397 crore in the second quarter of the current fiscal from Rs 1,32,631.72 crore a year earlier. LIC’s September quarter income fell to Rs 2,01,587 crore. To improve LIC agents’ and employees’ welfare, the Ministry of Finance increased gratuity limits and term insurance coverage. These measures benefit nearly 13 lakh LIC agents and 1 lakh regular workers. LIC agents’ gratuity maximum would rise to R5 lakh, boosting working conditions and benefits.
