Home India Life Insurance Corporation of India In exercise of the powers conferred by section 49 of the Lif...
Date: 13-Dec-2023 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by section 49 of the Life Insurance Corporation Act, 1956 31 of 1956, the Board, with the previous approval of the Central Government

Issued by Life Insurance Corporation of India · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The gazette notification introduces the Life Insurance Corporation of India (Agents) Amendment Regulations, 2023. These regulations amend the Life Insurance Corporation of India (Agents) Regulations, 2017.

Key Changes

  • Regulation 7, sub-regulation (2) of the Life Insurance Corporation of India (Agents) Regulations, 2017 has been omitted.
  • In Schedule 4, paragraph 2, sub-paragraph (1)(i)(b), the word 'संभावित' (expected) has been replaced with 'अपवादित' (excepted). This change is also reflected in the Explanation of the same paragraph.
  • In Schedule 4, paragraph 2, sub-paragraph (3), the amount '3,00,000/-' has been replaced with '5,00,000/-'.
  • Schedule 4, paragraph 3, sub-paragraph (2) has been substituted with a new table defining the amount of term insurance based on the average annual renewal commission earned by the agent in the three agency years immediately preceding their death. The table specifies different term insurance amounts for varying average commission ranges:
  • If the average commission was up to Rs. 5,000, the term insurance is Rs. 25,000.
  • If the average commission was Rs. 5,001 or more, but less than or equal to Rs. 10,000, the term insurance is Rs. 50,000.
  • If the average commission was Rs. 10,001 or more, but less than or equal to Rs. 50,000, the term insurance is Rs. 1,00,000.
  • If the average commission was Rs. 50,001 or more, the term insurance is Rs. 1,50,000.

Impact Analysis

LIC Agents

  • Action Item: Agents should review their commission earnings from the past three years to understand their potential term insurance coverage under the new regulations.

Life Insurance Corporation of India (LIC)

  • Action Item: LIC should update its systems to calculate the term insurance amounts accurately based on the new commission-based criteria.

Beneficiaries of LIC Agents

  • Action Item: Beneficiaries should be made aware of the updated term insurance benefits and the process for claiming them.

Compliance

  • Action Item: Legal and compliance teams should review the amendments and ensure that all internal processes are aligned.

Key Entities Referenced

Life Insurance Corporation of India (LIC): The primary entity affected by these regulations, responsible for implementing and adhering to the changes. Life Insurance Corporation Act, 1956: The principal act under which the Life Insurance Corporation of India operates and from which the power to make these regulations is derived (Section 49). Life Insurance Corporation of India (Agents) Regulations, 2017: The original regulations that are being amended by this notification. Central Government: The approving authority for the amendments made by the Board of LIC.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-13122023-250647 xxxGIDHxxx CG-MH-E-13122023-250647 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 832] नई ददल्ली, ब धवार, ददसम्बर 13, 2023/अग्रहायण 22, 1945 No. 832] NEW DELHI, WEDNESDAY, DECEMBER 13, 2023/AGRAHAYANA 22, 1945 भारतीय िीवन बीमा जनगम अजधसचू ना म ंबई, 6 ददसम्बर, 2023 फा. स.ं S-11015/01/2019-बीमा–I.—िीवन बीमा जनगम अजधजनयम, 1956 (1956 का 31) की धारा 49 द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, केन्द्रीय सरकार के पूवव अन मोदन स े बोडव, भारतीय िीवन बीमा जनगम (अजभकताव) जवजनयम, 2017 में और संिोधन करने के जलए जनम्नजलजखत जवजनयम बनाता ह,ै अथावत:- 1. संजिप्त नाम और प्रारंभ – (1) इन जनयमों का संजिप्त नाम भारतीय िीवन बीमा जनगम (अजभकताव) संिोधन जवजनयम, 2023 ह ै। (2) ये रािपत्र में उनके प्रकािन की तारीख से प्रवृत्त होंगे। 2. भारतीय िीवन बीमा जनगम (अजभकताव) जवजनयम, 2017 (जिसे इसमें इसके पश्चात ‘मूल जवजनयम’ कहा गया ह)ै - के जवजनयम 7 के उप जवजनयम (2) का लोप दकया िाएगा । 3. मूल जवजनयम के अन सूची 4 के- (क) पैरा 2 म ें- (अ) उप पैरा (1) म ें– खंड (i) के उपखंड (ख) म ें “संभाजवत “ िब्द के स्ट्थान पर “अपवाददत “ िब्द रखा िाएगा ; 7724 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] स्ट्पष्टीकरण म ें“संभाजवत “ िब्द के स्ट्थान पर “अपवाददत “ िब्द रखा िाएगा। (आ) उप पैरा (3) म ें– “3,00,000/- “ अंक के स्ट्थान पर “5,00,000/- “ अंक रखा िाएगा। (ख) पैरा 3 के उप पैरा (2) के स्ट्थान पर जनम्नजलजखत रखा िाएगा , अथावत :- “(2) उपखंड (1) के अधीन संदये रकम (जिसे इसमें इसके पश्चात अवजध बीमा की रकम कहा गया ह)ै उसकी मृत्य से ठीक पूवव तीन अजभकरण वर्षों में अजभकताव द्वारा अर्जित वार्जर्षक नवीकरण कमीिन के औसत पर आधाररत होगी और जनम्नजलजखत सारणी के अन सार होगी, अथावत :- सारणी औसत कमीिन अवजध बीमा की रकम (क) यदद औसत कमीिन रु. 5,000/- तक रु. 25,000/- (ख) यदद औसत कमीिन रु. 5,001/- या उस से अजधक दकन्द्त रु. 50,000/- रु. 10,000/- या उस से कम थी । (ग) यदद औसत कमीिन रु. 10,001/- या उस स े अजधक दकन्द्त रु.1,00,000/- रु. 50,000/- या उस से कम थी । (घ) यदद औसत कमीिन रु. 50,001/- या उस स ेअजधक थी। रु.1,50,000/-” एम. िगन्नाथ, प्रबंध जनदिे क [जवज्ञापन-III/4/असा./614/2023-24] रिप्पण : मलू जवजनयम भारत के रािपत्र, असाधारण म ें संख्या सा.का.जन. 86(अ) तारीख 2 फरवरी , 2017 द्वारा प्रकाजित दकए गए थे तथा फा सं I-13011/03/2021-बीमा-I तारीख 22.07.2021 द्वारा संिोजधत दकए गए। LIFE INSURANCE CORPORATION OF INDIA NOTIFICATION Mumbai, the 6th December, 2023 F.No.S-11015/01/2019-Ins-I.--In exercise of the powers conferred by section 49 of the Life Insurance Corporation Act, 1956 (31 of 1956), the Board, with the previous approval of the Central Government, hereby makes the following regulations further to amend the Life Insurance Corporation of India (Agents) Regulations, 2017, namely:- 1. Short title and commencement.-(1) These regulations may be called the Life Insurance Corporation of India (Agents) Amendment Regulations, 2023. (2) These regulations shall come into force on the date of their publication in the Official Gazette. 2. In the Life Insurance Corporation of India (Agents) Regulations, 2017 (hereinafter referred to as „principal regulations‟), in regulation 7, the sub-regulation (2) shall be omitted. 3. In the principal regulations, in the Fourth Schedule, - (a) in paragraph 2, - (A) in sub-paragraph (1), - (I) in clause (i), in sub-clause (b), for the words “expected reason”, the words “excepted reason” shall be substituted; (II) in clause(ii), for the word “an”, the word “and” shall be substituted; (III) in the Explanation, for the words “expected reason”, the words “excepted reason” shall be substituted;[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 (B) In sub-paragraph (3), for the words “three lakh”, the words “five lakh” shall be substituted. (b) in paragraph 3,for sub-paragraph (2), the following shall be substituted, namely:- “(2) The amount payable under sub-paragraph (1) (hereinafter referred to as the amount of term insurance) shall be based on the average annual renewal commission earned by the agent in the three agency years immediately preceding his death (hereinafter referred to as the average commission) and shall be according to the following Table, namely:- TABLE Average Commission Amount of Term Insurance (a) If the average commission was upto Rs.5,000 Rs.25,000 (b) If the average commission was Rs.5,001 or more, but less than or Rs. 50,000 equal to Rs.10,000 (c) If the average commission was Rs.10,001 or more, but less than Rs.1,00,000 or equal to Rs.50,000 (d) If the average commission was Rs.50,001 or more Rs. 1,50,000”. M. JAGANNATH, Managing Director [ADVT.-III/4/Exty./614/2023-24] Note : The principal regulations were published in the Gazette of India, Extraordinary, vide G.S.R. 86(E), dated the 2nd February, 2017 and subsequently amended vide F.No.I-13011/03/2021-Ins.I dated the 22nd July,2021. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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