(a): Life Insurance Corporation of India (LIC) has informed that LIC has launched a Defined Contribution Group Superannuation Scheme (Samvardhan) for its agents on 1st February, 2011 to help them accumulate corpus during their productive period which can be used for providing pension in a structured way after the accumulation period. Membership to the scheme is voluntary.
(b) : All the active agents between the age 18 to 65 years with minimum agency tenure of 1 year and annual commission of Rs.1 lakh can join the scheme. Minimum contribution by the agent is Rs 500/- per month and in multiples of Rs 500/- thereafter. Member agent will be eligible for pension which will be dependent on the age at vesting, accumulation of the contribution to his account and Annuity rates at the time of vesting.
(c) and (d): LIC has further informed that it has not received any such demand from the policyholders to dispense with the services of agents and thereby seek reduction in the premium to the extent of commission set apart for agents.
The abvoe statement was submitted by MoF in reply of undermentioned Lok Sabha Q&A:
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
UNSTARRED QUESTION NO3232
ANSWERED ON 30.08.2013
PENSION FOR LIC AGENTS
3232 .Shri JOSE K. MANI
Will the Minister ofFINANCE be pleased to state:-
(a) whether LIC has started/proposes to start a special pension scheme for its agents;
(b) if so, the details and the salient features thereof;
(c) whether there has been persistent demand from the policy holders to dispense with the service of agents and thereby seek reduction in the premium to the extent of commission set apart for agents; and
(d) if so, the details thereof and the reaction of the Government/Insurance Regulatory and Development Authority (IRDA) thereto?
Minister of State in the Ministry of Finance (Shri Namo Narain Meena)