Chase Your Desire Human Can Do Anything Club Rules – 2016-17 F.Y. Chase Your Desire Human Can Do Anything

Club 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 In acquiring sufficient knowledge, skills and competence to discharge their duties effectively towards policyholders and clients The purpose of introduction of Clubs at 9 levels are To inculcate professionalism amongst agents To motivate them for higher production level To do consistent business (PSR 3 MDRTs)

Club Crowns An Agent To encourage to render service to policyholders To accord higher status in L.I.C. and in society 9 Clubs Are: Distinguished Agent, Branch Manager’s, Divisional Manager’s, Zonal Manager’s, Chairman’s , MDRT, Galaxy Club & Corporate Clubs Clubs brought into existence on 1.4.1971. This may be hailed as the landmark in raising the status of the profession of insurance salesman in this country.

CLUB MEMBERSHIP Calendar Year: 1st Jan to 31st Dec Financial Year: 1st Apr to 31st Mar Club Year : 1st Sep to 31st Aug MDRT Year: 1st Jan to 31st Dec Corporate Club Year: 1st Apr to 31st Mar Agency Year: Will vary from agent to agent Ex: D.O.A. 14.2.2013, then 1st Mar to 28th Feb is the Agency Year. For 1st year of agency broken period is additional

CORPORATE CLUB - CONDITIONS A premium Agents Club called the “CORPORATE CLUB” has been formed w.e.f. M.Y. 2004-05 to motivate and recognize high performers of the country. Continues two financial year’s First Year Commission alone is taken (First & First Year Renewal) and not bonus commission. Current condition is Rs.18 lakhs commission for 2016-17 Lapse Ratio < 10% Interview by Zonal Committee Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

CORPORATE CLUB - BENEFITS Office Allowance: Rs.2,00,000 (Max * conditions apply) Gift Items: Nil Letter Heads and Envelopes : 1500 per year Visiting Cards: 1000 per year Conventions: Economy Air Fare Housing Loan at (5.5%) : 18 lakhs Car Advance: Rs.30 Lakhs Group Insurance : Rs.5,20,000 Telephone Charges : Rs.15,000 per year Group Mediclaim Insurance: Rs.1,25,000 Computer Advance : Rs.1,00,000 Blazer : Rs.6,000 Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

GALAXY CLUB - CONDITIONS Started from the f.y. 2013-14 Continues two financial year’s First Year Commission or Premium First Year Commission (w/o Bonus): Rs.10 lakhs or First Year Premium 40 lakhs Lapse Ratio <10% Registration with MDRT (USA) is prerequisite Interview by Zonal Committee Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

GALAXY CLUB - BENEFITS Main: Not clubbed with Fringe Benefits of any club. Car Advance: Rs.10 Lakhs Office Allowance: 50% of Actual Expenses or Rs.1,00,000 whichever is lower) Telephone Charges : Rental + Calls Rs.12,000 per year Letter Heads and Envelopes : 500 per year Visiting Cards: 500 per year Conventions: Air fare upto Rs.60,000 to attend MDRT meet / MDRT Experience meet + Rs.10,000 out of pocket expenses for MDRT meet Blazer : Rs.5,000 once in 3 years Other Benefits: Same as C.M. Club member Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Million dollar round table - mdrt M.D.R.T. is for one Calendar Year. Current is called M.D.R.T. 2017 Single Premium credit will be 6% M.D.R.T. is declared inclusive of Bonus Commission by L.I.C. and not eligible to attend the international convention On First Year Commission & Premium Basis: CLUB COMMISSION PREMIUM T.O.T. Rs.52,44,000 Rs.2,09,76,000 C.O.T. Rs.26,22,000 Rs.1,04,88,000 M.D.R.T. Rs.8,74,000 Rs.34,96,000 (Single Premium Credit = 6%) Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Chairman’s CLUB - BENEFITS Office Allowance: Rs.85,000 (Max * conditions apply) Gift Items: 10,000 Festival Advance: Rs.15,000 Letter Heads and Envelopes : 1000 per year Visiting Cards: 250 per year Conventions: 2nd Ac Train Fare+ Rs.4500 per day Housing Loan : 8.5 (Cadre Loan) + 9.5 lakhs (Extended) Vehicle Advance: Rs.7 Lakhs Telephone Charges : Rs.6,000 per year Group Mediclaim Insurance: Rs.1,25,000 Computer Advance : Rs.45,000 Furniture Advance : Rs.35,000 Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

ZONAL MANAGER’s CLUB - BENEFITS Office Allowance: Rs.22,000 (* conditions apply) Gift Items: 2,000 Festival Advance: Rs.15,000 Letter Heads and Envelopes : 750 per year Visiting Cards: 200 per year Conventions: 2nd Ac Train Fare+ Rs.2500 per day Housing Loan : 7.45 (Cadre Loan) + 8.55 lakhs (Extended) Vehicle Advance: Rs.5 Lakhs Telephone Charges : Rs.4,000 per year Group Mediclaim Insurance: Rs.75,000 Furniture Advance : Rs.35,000 Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

DIVISIONAL MANAGER’s CLUB - BENEFITS Office Allowance: Rs.12,000 (* conditions apply) Gift Items: 1,000 Festival Advance: Rs.15,000 Letter Heads and Envelopes : 500 per year Visiting Cards: 150 per year Conventions: 2nd Ac Train Fare + Rs.400 per day Housing Loan : 6.45 (Cadre Loan) + 7.55 lakhs (Extended) Vehicle Advance: Two Wheeler Only Telephone Charges : Rs.2,400 per year Group Mediclaim Insurance: Rs.55,000 Furniture Advance : Rs.35,000 Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

branch MANAGER’s CLUB - BENEFITS Stationery Allowance: Rs.1,000 Gift Items: 5,00 Festival Advance: Rs.12,000 Letter Heads and Envelopes : 300 per year Visiting Cards: 100 per year Conventions: 2nd Ac Train Fare + Rs.200 per day Vehicle Advance: Two Wheeler Only Telephone Charges : Rs.1,800 per year Group Mediclaim Insurance: Rs.40,000 Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

To Qualify To declare a club an agent should qualify for the “Qualifying Year” and “2 out of 3 years” preceding the Qualifying year or continuously for 3 years, inclusive of Qualifying Year. Ex: For Club Year 2017-18, the qualifying financial year is 2016-17 Net Lives: Lapses of previous year will be deducted from that year. i.e. 2010-11 lapses will be deducted from 2011-12 lives ; 2011-12 lapses will be deducted from 2012-13 and so on Here lapse means, premiums not paid for more than 6 months for 1st Policy Year only. Subsequent year lapses will not be taken into account for CLUB Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Club Membership Eligibility Criteria This is for whole agency period, taken from inception of agency This is for Financial Year Sl Club C.M. Z.M. D.M. B.M. 1 Min Net Lives 40 30 20 15 2 Net Lives Or Lives In Force 130 600 100 400 80 250 50 150 3 Renewal 200000 140000 90000 50000 4 First Year, First Year Renewal & Bonus 60000 35000 Up 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 5% escalation clause yet to be implemented 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 Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Club Membership Eligibility Criteria DISTINGUISHED AGENTS’ CLUB Minimum fulfilled one Agency Year Business production of 40 LIVES with Rs.50,000 premium in a FINANCIAL YEAR. Definition Minimum Net Number of Lives: For entry or continuation of any club, an agent has to bring in compulsorily Minimum Net number of Lives, even non-fulfillment of all/other conditions in a particular year. Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Definition But condoned once, if continuous for 5 years & twice for 10 years in the same club. But fulfilled other conditions Sl Club C.M. Z.M. D.M. B.M. 1 Min Net Lives (Original) 40 (130) 30 (100) 20 (80) 15 (50) 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 starting from his/her agency period. 2 Net Lives Or Lives In Force 130 600 100 400 80 250 50 150 In a financial year duplicate lives are taken as ONE only. Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Percentage of lapsation Should be less than 15% (no rounding off) If > 15% for a year, no disincentive, but no fresh advance for vehicle or housing will be given If > 15% for continuous 2 years, then no convention and Office/Stationary allowance If >15% for continuous 3 years, then he/she will loose the CLUB MEMBERSHIP. 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). Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Definition However, for continuation, 5% increase clause applicable from Membership year 2015-16 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 continuous member for not less than 15 membership years (or) immaterial of age continuous 25 years in the same club, can continue the membership of the same club by fulfilling at least 75% of the criteria applicable for that club. If any agent is elevated to next higher club, then continuation for lower club is taken Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Definition 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. Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Least of the above three will be paid Definition 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 Allowance 50% of actual expenses OR 7.5% of FYC + RC (Total Commission) OR C.M. Z.M. D.M. B.M. Rs.35,000 Rs.20,000 Rs.12,000 Nil Least of the above three will be paid Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Low Lapse Additional Office Allowance (Only for C.M. Club) Less or equal to 10% Addition 5% Less or equal to 5% Addition 18% Less or equal to 9% Addition 8% Less or equal to 4% Addition 20% Less or equal to 8% Addition 10% Less or equal to 3% Addition 22% Less or equal to 7% Addition 12% Less or equal to 2% Addition 25% Less or equal to 6% Addition 15% Less or equal to 1% Addition 28% 0% Lapse Will Get 30% Addition Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Additional Office Allowance based on lives (Only for C.M. Club) Net No. Of Lives & Commission In Qualifying Year Total Office Allowance Telephone Reimbursement Sales Gift Items Lives 1000 & RC = 600000 (OR) RC +FYC = 1000000 Rs.50000 Rs.8000 (Actual 6000) Rs.5000 (Actual 3000) Lives 1500 & RC = 900000 (OR) RC +FYC = 1500000 Rs.70000 Rs.10000 Rs.7500 (Actual 3000) Lives 2000 & RC = 1200000 (OR) RC +FYC = 2000000 Rs.100000 Rs.12000 Rs.10000 (Actual 3000) Note: The maximum Office Allowance will be 50% of actual expense or 7.5% of total commission earned in previous year or as per above slab, whichever is less will be paid. Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

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 Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Group Mediclaim Only for agent (not family) Group INSURANCE (For > 1 yr service) Ex-1: If agent age at entry is 25, he will get after completing age 60. Ex-2: If agent age at entry is 55, he will get after completing age 70. Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Club benefits Details C.M. Z.M. D.M. B.M. 1 Office/Stationery 35,000 22,000 12,000 Nil 2 Sales Gift Items 3,000 2,000 1,000 500 3 Festival Advance 15,000 4 Certificates Yes 5 Badge Colour Red Blue Green Orange 6 Letter Head & Envelope 1000 750 300 7 Visiting Cards 250 200 150 100 8 Travelling Expense Econ Air Fare 2nd AC 9 Daily Allowance for Convention 800 700 375 10 Out of Pocket Expenses 1,100 400 11 Housing Loan Total 18 laks 16 laks 14 laks 12 Vehicle Advance 7,50,000 5,00,000 2 Wheeler 13 Computer Advance No 14 Furniture Advance 15 Telephone Charges p.a. 6,000 4,000 2,400 1,800 Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

Club benefits - Continuation Details C.M. Z.M. D.M. B.M. 16 Group Term Assurance 2,40,000 1,20,000 60,000 30,000 17 Group Mediclaim Insurance 1,25,000 75,000 55,000 40,000 18 Samwardhan Pension Scheme 14,000 Nil 19 Additional Office Allowance based on Lives & Lapse Ratio Yes No 20 Attestation Age Proof 21 Attestation of Claim Papers 22 M.H.R. Limit 50 laks 30 laks 20 laks 10 laks 23 L.I.C. Guest House Facility Wide Range Of Benefits Be Minimum C.M. Club Member Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

An agent statistics taken from lic (This is available intra-net & can check any time) Exclusive of Maturity, Death Claim, Surrender, Lapse (Net Lives In Force) Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com

I have taken this in F.Y. 2013-14 The figures are position of that year (current) as on that date You can also see your past & current position in LIC intro-net If possible I send later how to do it

Example -2 (Another Agent) Result: ZM Club Member On Continuous 3 years Net No. Of Lives Needed = 100 If not Min = 30 Lapse Ratio < 15% OR Renewal Commn >= 1,40,000 Total Net No. Of Lives Needed = 400 1st Year Commn >= 1,40,000 Qualifying Year 3 Contin-ous Years OR 3 Out Of 4 Years

Example -3 (Another Agent) YEAR CLUB QUALIFIED 2012-13 CM 2011-12 2010-11 2009-10 ZM 2008-09 DM 2007-08 BM In 2013-14 will be declared as C.M. In this year will be declared as Z.M. In this year will be declared as D.M. In this year will be declared as B.M. Very Important Note: By chance if you go out of club (non-club member), then you have to start afresh. Past position or service will not be taken

10 Lives & 1.2 Lks Reglar Premium Per Month Start Today. Its Right Time You Have 350 Days C.M. Club Qualify For 1st Year Simple Thumb Rule For C.M. Club 10 Lives & 1.2 Lks Reglar Premium Per Month The End Rtn. P.S. Ravindiran, S.B.A. (Retd), Chennai ; 9444407791 ; nalurpsr@nalurpsr.com