LIC has reduced its first-year commission from 25% to 20%, and the bonus has been lowered from 10% to 8%, according to sources cited by CNBC TV18. This reduction follows the implementation of higher surrender values, effective from October 1.
Additionally, the total first-year commission for agents has reportedly been reduced from 35% to 28%. LIC has also likely increased its renewal commission to 7.5% from 5%, with the minimum sum assured raised to ₹2 lakh from ₹1 lakh.
Moreover, premiums for LIC policies have increased marginally, with reports suggesting a low single-digit rise across various products. LIC has confirmed that its products are compliant with the new regulations, though an official response is still awaited.
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