LIC plans to retain agents with pension scheme
Life Insurance Corporation of India, the state-run company facing competition from nimble private rivals, will soon have a pension plan for its half a million strong agents to keep the flock together amid large scale poaching.
The special pension plan for its agents who earn commissions of more than 1 lakh per year may benefit about five lakh-odd agents who could be the main target of private companies, many of whom are struggling to profit.
The proposed scheme is expected to be introduced in the next few days.
“Currently, there is a scheme for agents who earn less than 1 lakh of commission per year, but there are no schemes for agents who earn more than a lakh. This scheme will be on the line of the central government’s new pension scheme and will be contributory in nature,” said managing director, AK Dasgupta .
At times, LIC announces cash rewards and benefits for its agents, who sell pension products to others but in most cases do not have any for themselves. “Instead of the cash reward, we may offer them this policy which will come in handy during old age,” said Mr Dasgupta.
“LIC has about 14 lakh agents of which about 30-40% earn commissions of more than a lakh. The scheme will be based on productivity of an agent meaning he has to sell a certain number of policy and earn a certain amount of premium for only then will he be eligible,” said a senior LIC official.
The insurance major has also recently, introduced a new scheme for agents to attract new talents. The scheme, christened, City Career Agents, will offer a monthly stipend to agents who have to cover at least 24 lives and earn a commission of 30,000 per month. This scheme is eligible for a year for a agent and is aimed at making sure that the agent can bring sizeable premium income for LIC.
Source: Economic Times