Post-resignation commission rights for lic agents (regulation 19 of lic agents regulations 2017)

LIC agent can resign from their agency and still be eligible for renewal commissions on policies they procured, provided they meet certain conditions. 

Specifically, the agent must have served the insurer continually and exclusively for at least ten years and must not directly or indirectly solicit or procure insurance business for any other person after resignation, according to a Madras High Court ruling and Section 44 of the Insurance Act. 

Section 44 of the Insurance Act, 1938, primarily deals with the continuation of commission payments to insurance agents even after they cease to act for an insurer, provided certain conditions are met. 

Specifically, it ensures that if an agent has served an insurer for at least five years, they are entitled to renewal commission on policies they secured, even after discontinuing their agency, unless the cessation is due to fraud. 

LIC agents are generally entitled to renewal commissions on policies they sold even after they resign, as long as the policies remain in force and they meet the stipulated criteria. 

The agent cannot solicit or procure business for another insurance company after resignation to remain eligible for renewal commissions. 

A Madras High Court ruling further clarified that LIC agents are entitled to renewal commissions until the policies they procured expire, even if they resign and join a competitor.