GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
RAJYA SABHA
UN-STARRED QUESTION NO. 2627
ANSWERED ON TUESDAY, AUGUST 11, 2026/ 20 SHRAVANA, 1948 (SAKA)
SERVICE CONDITIONS OF LIC DEVELOPMENT OFFICERS
- SHRI SANJAY SINGH:
Will the Minister of FINANCE be pleased to state:
(a) whether business procurement in LIC is a collective responsibility of all marketing officials including Development Officers (Class-II), ABM, BM, SBM, CM, MM, SDM and RM;
(b) whether Development Officers appointed under the LIC Staff Rules, 1960 are permanent employees, if so, under what statutory provisions they can be terminated or penalised solely for business performance;
(c) whether many Development Officers with over 20–30 years of service have not received time- bound promotions, if so, the reasons therefor; and
(d) the details of official vehicles, fuel reimbursement, laptops and related facilities for ABM to RM, including annual expenditure, post-wise?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) The business procurement is collective responsibility of all the employees of the Corporation, who are posted in marketing assignment.
(b) The Development Officers (DOs) are salaried employees of the Corporation, who are recruited for the marketing functions of the organization. All the Development Officer are governed by Life Insurance Corporation of India Development Officers (Revision of Certain Terms and Conditions of Service) Rules 2009 as amended from time to time for their business performance. These rules inter-alia provide for corrective measures and disincentives wherever the Development Officers are unable to perform within the defined business parameters. Despite being given sufficient opportunities to improve business performance year after year, if the Development Officers are not able to procure the required business in consecutive years, it may lead to termination under Rule 6(8) read with Rule 7 of the above mentioned rules.
(c) Recruitment of Apprentice Development officers is governed by Life Insurance Corporation of India (Recruitment of Apprentice Development Officers) Regulations, 1999. After completion of training, the Apprentice Development Officers are placed on probation and posted to a branch office. The Probationary Development Officers after fulfilling prescribed business criteria, including recruitment of agents are confirmed as a Development Officer. In accordance with LIC (Staff) Rules, 1960, the Corporation has framed the criteria for determining suitability for promotion of Development Officer as Assistant Branch Manager (Agency) in the cadre of Assistant Administrative Officer in Class I. The promotion is taken up once in each Financial Year. During the promotion round 2025-26, out of 18,614 DOs only 834 had applied for the post of ABM (Agency), out of these, 334 candidates were selected for promotion.
(d) The post-wise details of Official vehicles, fuel reimbursement and laptops for ABM to RM is placed at Annexure-A, B and C and the details of annual expenditure at Annexure-D.
Annexure A
Annexure A referred to in reply of part (d) of Rajya Sabha Unstarred Question No.2627 dated 11.08.2026 regarding “SERVICE CONDITIONS OF LIC DEVELOPMENT OFFICERS”
Details of Financial Limit of official vehicles
Annexure-B
Annexure B referred to in reply of part (d) of Rajya Sabha Unstarred Question No.2627 dated 11.08.2026 regarding “SERVICE CONDITIONS OF LIC DEVELOPMENT OFFICERS”
Details of Fuel reimbursement limt
Annexure-C
Annexure C referred to in reply of part (d) of Rajya Sabha Unstarred Question No.2627 dated 11.08.2026 regarding “SERVICE CONDITIONS OF LIC DEVELOPMENT OFFICERS”
Details of cost of laptop reimbursement limit
Annexure-D
Annexure D referred to in reply of part (d) of Rajya Sabha Unstarred Question No.2627 dated 11.08.2026 regarding “SERVICE CONDITIONS OF LIC DEVELOPMENT OFFICERS”
Expenditure Details – Scheme VI Vehicle & Laptop
