Club Rules – 2014-15 F.Y.Club Rules – 2014-15 F.Y.

Chase Your Desire Chase Your Desire Human Can Do AnythingHuman Can Do Anything

I shall explain my prospectsabout the products

truthfully & correctly

I am proud to be “ AGENT “ of L.I.C. of India

I shall respect my “Profession” with

high esteem

I shall faithfully & Promptly serve my

clients & theirdependents

I shall ensure that premiumsare remitted regularly &

prevent them fromLAPSING

I shall plan my work Properly & work hardto realize my plans

I shall strain my every nerveto climb up in the ladderof “Club Membership” &also create new records

year after year

I shall respect the rules& regulations of theCorporation & I willStrictly adhere too

I shall update my knowledge,improve my confidence &

professionalism, by continuousstudies & training, so as torender the right advice to

My clients

Practice These 10 Commandments

While canvassing for Insurance I shall consider my

client’s needs & benefits as most important

Club Crowns An AgentClub Crowns An Agent Agents are the backbone of LIC of India. The agents have therefore to be nurtured and

cultivated to grow up in the profession, acquiring sufficient knowledge, skills and competence to discharge their duties effectively towards policyholders and clients.

To inculcate professionalism in agents, to motivate them for higher production and consistency of business, to encourage them to render service to policyholders and to accord them a higher status in the organisation and society, the introduction of Clubs at 7 levels

Club Crowns An AgentClub Crowns An Agent Distinguished Agent, Branch Manager’s,

Divisional Manager’s, Zonal Manager’s, Chairman’s , MDRT & Corporate Clubs

Brought into existence with effect from 1.4.1971.

This may be hailed as the landmark in raising the status of the profession of insurance salesman in this country.

In order to promote professionalism amongst a larger number of agents and to enhance insurance coverage at a faster pace, Distinguished Agents’ Clubs at Branch Level have been formed w.e.f. 1.4.1999.

Club Crowns An AgentClub Crowns An Agent M.D.R.T. is for one Calendar Year.M.D.R.T. is for one Calendar Year. Current is called M.D.R.T. 2015Current is called M.D.R.T. 2015 On First Year Commission basis: On First Year Commission basis:

Rs.8,45,300 for M.D.R.T. ; Rs.25,35,900 Rs.8,45,300 for M.D.R.T. ; Rs.25,35,900 for C.O.T. & Rs.50,71,800 for T.O.Tfor C.O.T. & Rs.50,71,800 for T.O.T

On First Year Premium basis: On First Year Premium basis: Rs.33,81,200 for M.D.R.T. ; Rs.33,81,200 for M.D.R.T. ; Rs.1,01,43,600 for C.O.T. & Rs.1,01,43,600 for C.O.T. & Rs.2,02,87,200Rs.2,02,87,200

Single Premium credit will be 6%Single Premium credit will be 6%

M.D.R.T. Competition by M.D.R.T. Competition by C.O.C.O.

Level Performance Level Rewards

IT.O.T. (Qualifying Condition Rs. 50,71,800 FYC or Rs.2,02,87,200 FYP )

Participation in convention with spouse & honor by CO Dignitary with memento worth Rs. 25,000.

IIC.O.T. (Qualifying Condition Rs. 25,35,900 FYC or Rs.1,01,43,600 FYP )

Participation in convention & honor by CO Dignitary with memento worth Rs. 20,000.

IIIDouble MDRT (Qualifying Condition Rs. 16,90,600 FYC or Rs. 67,62,400 FYP)

Participation in convention & honor by CO Dignitary with memento worth Rs. 15,000.

IVM.D.R.T. (Qualifying Condition Rs. 8,45,300 FYC or Rs. 33,81,200 FYP )

Participation in convention & honor by CO Dignitary with memento worth Rs. 7500.

Period: 01.01.2014 To 31.03.2014

Club Crowns An AgentClub Crowns An Agent A premium Agents Club called the

“CORPORATE CLUB” has been formed w.e.f. M.Y. 2004-05 to motivate and recognize high performers.

Continues two financial year commission taken

For the above club, only First Year Commission alone is taken (First & First Year Renewal) and not bonus commission.

Current condition is Rs.18 lakhs commission in 2012-13 & 2013-14.

CLUB MEMBERSHIPCLUB MEMBERSHIPCalendar Year: 1Calendar Year: 1stst Jan to 31 Jan to 31stst Dec Dec

Financial Year: 1Financial Year: 1stst Apr to 31 Apr to 31stst Mar Mar

Club Year : 1Club Year : 1stst Sep to 31 Sep to 31stst Aug Aug

MDRT Year: 1MDRT Year: 1stst Jan to 31 Jan to 31stst Dec Dec

Corporate Club Year: 1Corporate Club Year: 1stst Apr to 31 Apr to 31stst Mar Mar

Agency Year: Will vary from agent to agent Agency Year: Will vary from agent to agent Ex: D.O.A. 14.2.2013, then 1Ex: D.O.A. 14.2.2013, then 1stst Mar to 28 Mar to 28thth Feb is the Agency Year.Feb is the Agency Year.

For 1For 1stst year of agency broken period is year of agency broken period is additionaladditional

To QualifyTo Qualify To declare a club an agent should qualify for To declare a club an agent should qualify for

the “the “Qualifying YearQualifying Year” and “” and “2 out of 3 years2 out of 3 years” ” preceding the Qualifying year or preceding the Qualifying year or continuously continuously for 3 years, for 3 years, inclusive of inclusive of Qualifying YearQualifying Year..

Ex: For Club Year 2014-15, the qualifying Ex: For Club Year 2014-15, the qualifying financial year is 2013-14financial year is 2013-14

Net Lives: Lapses of previous year will be Net Lives: Lapses of previous year will be deducted from that year. i.e. 2010-11 lapses deducted from that year. i.e. 2010-11 lapses will be deducted from 2011-12 lives ; 2011-12 will be deducted from 2011-12 lives ; 2011-12 lapses will be deducted from 2012-13 and so lapses will be deducted from 2012-13 and so onon

Here lapse means, premiums not paid for Here lapse means, premiums not paid for more than 6 months for 1more than 6 months for 1stst Policy Year only. Policy Year only. Subsequent year lapses will not be taken into Subsequent year lapses will not be taken into account for CLUBaccount for CLUB

Club Membership Eligibility CriteriaUp to 100% shortfall,

can be made good with equivalent FY+FYR+ Bonus

commission

Up to 50% shortfall, can be made good

with equivalent Renewal commission

Add 5% on Renewal & FY+FYR+Bonus, for entry only, which is applicable from this financial year

Example: If Renewal Commission for CM is 120000 then FY+FYR+Bonus should be 280000.

If FY+FYR+Bonus is 160000 then Renewal Commission should be 240000

Like above you have to apply for others clubs also

This is for Financial Year

This is for whole agency period, taken from inception

of agencySlSl ClubClub C.M.C.M. Z.M.Z.M. D.M.D.M. B.M.B.M.

11 Min Net LivesMin Net Lives 4040 3030 2020 1515

22 Net Lives Or Net Lives Or

Lives In ForceLives In Force130130

600600100100

4004008080

2502505050

150150

33 RenewalRenewal 200000200000 140000140000 6000060000 3500035000

44 First Year, First First Year, First Year Renewal & Year Renewal & BonusBonus

200000200000 140000140000 9000090000 5000050000

Club Membership Eligibility Criteria

DISTINGUISHED AGENTS’ CLUBDISTINGUISHED AGENTS’ CLUB Minimum fulfilled one Agency YearMinimum fulfilled one Agency Year Business production of 40 LIVES with Business production of 40 LIVES with

Rs.50,000 COMMISSION in a FINANCIAL YEAR.Rs.50,000 COMMISSION in a FINANCIAL YEAR.

DefinitionDefinitionNo. of years for which Criteria will have to be fulfilled: Qualifying Year and in any two out of three financial Years preceding the Qualifying year for both Entry and Continuation

DefinitionDefinition

SlSl ClubClub C.M.C.M. Z.M.Z.M. D.M.D.M. B.M.B.M.

11 Min Net LivesMin Net Lives 4040 3030 2020 1515

Minimum Net Number of Lives: For entry or continuation of any club, an agent has to bring in compulsorily Minimum Net number of Lives for entry/continuation, even in the non-fulfillment of all or other conditions in a particular year.

Net Number of Lives/ Number of Lives in force: An agent can either bring in the Net number of lives or should have number of lives in force in the years.

22 Net Lives Or Net Lives Or

Lives In ForceLives In Force130130

600600100100

4004008080

2502505050

150150

DefinitionDefinition Relaxation Clause: A shortfall in 1st Yr

Commission may be condoned maximum up to 50%, provided it is compensated with the same or higher percentage increase on the basic condition prescribed for Renewal Commission paid

Or A shortfall in Renewal Commission, it may

be condoned up to a maximum of 100% provided it is compensated with the same or higher % increase on the basic condition of 1st Yr Commission paid

DefinitionDefinition Escalation Clause: 5% increase in

each year on the previous year’s Entry criteria in respect of First Year Commission paid & Renewal Commission paid applicable for entry from the Membership Year 2014-15 (Qualifying Financial Year 2013-14).

However, for continuation, 5% increase clause applicable from Membership year 2015-16

DefinitionDefinition

Relaxation in fulfillment of qualifying criteria: An agent who has completed the age of 60 years as on the date of commencement of club membership year and n a continuous member of the same club for not less than 15 membership years can continue the membership of the same club by fulfilling at least 75% of the criteria applicable for that club.

DefinitionDefinition Credit for revived policies: Allowed

credit of ‘lives revived’ in arriving at ‘Net Number of lives’. Revival should be done on or before 31st March and the same should be intimated within 2 months (in Apr or May)

Training: A member of any club and/or one whose membership is continued in the said Membership Year will be required to undergo training at ZTC/STC etc once in 4 years.

DefinitionDefinition

Agency with any other Insurer: The agent working with LIC shall not be eligible for grant / continuation of Membership of any Club if any of his family member having agency with any other life insurer.

Fringe Benefits

Basic Office Basic Office AllowanceAllowance

50% of actual expenses OR 7.5% 50% of actual expenses OR 7.5% of FYC + RC (Total Commission)of FYC + RC (Total Commission)

OR

C.M.C.M. Z.M.Z.M. D.M.D.M. B.M.B.M.

Rs.35,000Rs.35,000 Rs.22,000Rs.22,000 Rs.12,000Rs.12,000 NilNil

Least of the above two will be paid

Low Lapse Additional Office Allowance

Less or Less or equal to equal to

10%10%

Addition Addition 5%5%

Less or Less or equal to 5%equal to 5%

Addition Addition 18%18%

Less or Less or equal to 9%equal to 9%

Addition Addition 8%8%

Less or Less or equal to 4%equal to 4%

Addition Addition 20%20%

Less or Less or equal to 8%equal to 8%

Addition Addition 10%10%

Less or Less or equal to 3%equal to 3%

Addition Addition 22%22%

Less or Less or equal to 7%equal to 7%

Addition Addition 12%12%

Less or Less or equal to 2%equal to 2%

Addition Addition 25%25%

Less or Less or equal to 6%equal to 6%

Addition Addition 15%15%

Less or Less or equal to 1%equal to 1%

Addition Addition 28%28%

0% Lapse Will Get 30% Addition

DefinitionDefinition For existing Club Member Agents:

a) If the lapse is >15% (no rounding off) – No disincentive b) If lapse is >15% consecutive in the next year – No Office Allowance & Convention c) If lapse is >15% consecutive for the 3rd year – Club-membership ceases

Office Allowance for potential CM’s Club

Agents who would satisfy the CM’s club conditions in 1st Year will get Rs.12,000 and qualified in 2nd Year also will get Rs.20,000

Note if the above is less than actual office allowance of existing club, then the actual will be paid

Moral Hazard Report Limit

Thank You