Agency


LIC formulated the Agents Regulation in 1st May 1972
The Rules and Guidelines for appointment confirmation, training, functions, payment of commission and other benefits and termination etc are laid down in the Agent’s Regulation.

Agency - Qualifications

The person should be at least 18 years of age
He/she should be a matriculate( 12th Pass) if he/she is to be appointed in Urban areas and should have passed at least 10th standard if he/she is to be appointed at any other place.

Agency - Functions

Every Agent shall solicit & procure new life insurance business which shall not be less than the minimum prescribed in these regulations and shall endeavor to conserve the business secured earlier

In procuring new life insurance business, an agent shall
Take into consideration the needs of the proposer for life insurance and their capacity to pay premiums

Make all reasonable inquires in regard to the lives to be insured before submitting proposals for acceptance, and bring to the notice of the Corporation any circumstances which may adversely affect the risk to be underwritten

Take all reasonable steps to ensure that the age of the life assured is admitted at the commencement of the Policy and

Not to interfere with any other Proposal introduced by any other agent.

Every agent shall, with a VIEW TO Conserving the business secured earlier, maintain contact with all the Persons who have become Policyholders of the Corporation through him and shall :

Advise every policyholder to effect nomination or assignment in respect of this Policy & offer necessary assistance in this behalf;

Endeavor to ensure installment premium is remitted by the Policyholder to the Corporation within the Days of Grace;

Endeavor to prevent the Lapsation of a Policy or its conversion into a paid-up policy &
Render all reasonable assistance to the Claimants in filling claim forms and generally in complying with the requirements laid down in relation to settlement of claims.

Nothing contained in these regulations shall be deemed to confer any authority on an agent to collect any moneys or to accept any risk for or on behalf of the Corporation or to bind the Corporation in any manner whatsoever;

Provided that an agent may be authorized by the Corporation to collect and remit renewal premiums under policies on such conditions as may be specified.

Gratuity Benefits


(1) An Agent shall be eligible for gratuity if he has worked continuously for fifteen or more qualifying years and he is not below 60 years of age or his agency stands terminated or ceases under any of the provisions of the Agency Regulations other than for an expected reason or if he has been confirmed in his appointment and he dies while his agency is subsisting.

(2) Gratuity admissible to an agent shall be at the eligible rate for each qualifying year for the first 15 qualifying years and at half the eligible rate for the subsequent ten qualifying years, provided the maximum amount payable shall not exceed RS 30,00 ( amount as per Original Regulations)


Term Insurance Benefits

The amount of term insurance payable to an agent shall be based on the average annual renewal commissions earned by the agent in the three agency years immediately preceding his death and shall be according to the scale.



* The person should take up Agency as a long term career by a conscious choice and should not be a drop out after some initial work
* He should regularly devote a substantial part of his time everyday to his work
* He should study his work well, acquire very sufficient knowledge of it & practice it with competence, faith & devotion.
* He should develop a high degree of professional integrity and character which should give confidence to people who come in contact with him
* He should render continuous service to his clients and society
* He should derive a substantial part of his total income from his profession and not just a marginal portion of it &
* He should be a well motivated person without requiring external motivation to do his work.

Urban Career Agency Scheme
Formulated in 1972
Career agents are selected after an aptitude Test
A monthly stipend is granted to the Agent
The aim of this scheme was to professionalize LIC Agency by giving intensive training to the Career Agent

Rural Career Agency
Launched in 1979
A conscious effort to make a breakthrough in Rural business
Agents selected after an aptitude test
Agents given intensive training
Stipend paid to the Agents during the initial years