He further noted that LIC’s premium rates are already among the highest in the industry, and the introduction of new policies with even higher premiums makes it nearly impossible for agents to sell policies, especially to the middle and lower-income populations. With these steep premium increases, agents find it extremely challenging to meet sales targets and provide affordable coverage to policyholders, he said.The Congress leader also flagged the issue of reduced bonuses and benefits. He said LIC has reduced the entry age for popular policies to 50 years, a regressive move that will directly impact agents’ ability to procure new business, as many potential policyholders will now fall outside the eligibility criteria for the plans they once had access to.He further criticized the introduction of the “clawback commission” policy by LIC, calling it highly objectionable. Under this clause, agents are held responsible for the surrender of policies and are required to repay the commission they earned. “This is unfair, as the commission is an integral part of the premium, and agents should not be penalized for policyholders’ decisions to surrender policies, which may be influenced by various external factors beyond the agents’ control,” he said.”In light of these developments, I request your urgent intervention to review the changes implemented on October 1, 2024. I urge you to reconsider the policies that adversely affect both agents and policyholders and take corrective action to ensure that LIC can continue to fulfill its mandate of providing accessible and affordable life insurance to all sections of society,” the Congress leader said.”I am confident that, with your support, the concerns of LIC agents and policyholders will be addressed promptly and justly,” Tagore said in his letter to Sitharaman.
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