Congress MP Raises Alarm Over LIC Policy Restructuring Impact

Congress MP Manickam Tagore has voiced concerns to Finance Minister Nirmala Sitharaman about recent LIC policy changes affecting agents and policyholders, especially in rural areas. The restructuring demands higher premiums and imposes stricter criteria, hurting livelihoods and diminishing commission and benefits, Tagore argues for urgent intervention.

Congress MP Manickam Tagore has raised significant concerns regarding recent Life Insurance Corporation (LIC) policy changes. In a letter to Union Finance Minister Nirmala Sitharaman, he highlighted the adverse effects the restructuring has on LIC agents and policyholders, notably in rural and low-income areas.

Dated November 5, Tagore's letter emphasized that the amendments introduced on October 1, 2024, could jeopardize the livelihood of approximately 14 lakh agents and millions of policyholders. The revised policies demand higher premiums and set a minimum sum assured of Rs 2 lakh, disproportionately affecting vulnerable groups.

Tagore also criticized the unchanged commission rates for agents despite regulatory approvals for hikes, and the reduction in bonuses and policy benefits as regressive. He labeled the 'clawback commission' policy as unfair, expressing concern over its impact on agents' earnings and urging the Finance Minister to reconsider these policies to safeguard accessible insurance for all.

(With inputs from agencies.)