In a major move, Life Insurance Corporation of India (LIC) will be releasing over ₹2710 crore as advance to six lakh agents.

``The Corporation has agreed to release ₹50,000 as advance commission for over 6 lakh agents as Covid19 social advance,'' Singarapu Srinivas, President, Life Insurance Agents Federation of India (LICAF) told Business Line on Tuesday.

Those agents who have completed five years of service are eligible to receive advance. Out of 12 lakh agents in the country, 6.65 lakh agents will get benefited by this decision.

The first instalment will be released on April 15 while the remaining ₹25000 will be credited to agents' accounts on May 15. The advance will be recovered by October this year.

The move is timely because most of the business for LIC agents will be in March month every year due to tax savings season.

Another ₹536 crore has also been given to agents as commission bills for the month of March, he added.

According to V Sudheer Kumar, Chief Life Insurance Adviser, due to social distance norms as well as restrictions on physical movement, agents could not get any new business.

When contacted, a senior official of LIC told Business Line on the condition of anonymity that a significant chunk of business for corporation comes in the end of the year. ``The lockdown was a tax-saving period too and we understand that agents could get new business,'' he said.

As the corporation extended the closing of FY books till April 14 due to operational difficulties, the exact business impact on the business will be known only later, he added.

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