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

I shall explain my prospects about 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 & their dependents I shall ensure that premiums are remitted regularly & prevent them from LAPSING I shall plan my work Properly & work hard to realize my plans I shall strain my every nerve to climb up in the ladder of “Club Membership” & also create new records year after year I shall respect the rules & regulations of the Corporation & I will Strictly adhere too I shall update my knowledge, improve my confidence & professionalism, by continuous studies & training, so as to render 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 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 Agent Distinguished Agent, Branch Manager’s, Divisional Manager’s, Zonal Manager’s, Chairman’s, MDRT & Corporate Clubs Brought into existence with effect from 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

Club 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 Current is called M.D.R.T On First Year Commission basis: Rs.8,45,300 for M.D.R.T. ; Rs.25,35,900 for C.O.T. & Rs.50,71,800 for T.O.T On First Year Commission basis: Rs.8,45,300 for M.D.R.T. ; Rs.25,35,900 for C.O.T. & Rs.50,71,800 for T.O.T On First Year Premium basis: Rs.33,81,200 for M.D.R.T. ; Rs.1,01,43,600 for C.O.T. & Rs.2,02,87,200 On First Year Premium basis: Rs.33,81,200 for M.D.R.T. ; Rs.1,01,43,600 for C.O.T. & Rs.2,02,87,200 Single Premium credit will be 6% Single Premium credit will be 6%

M.D.R.T. Competition by C.O. LevelPerformance LevelRewards I T.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. II C.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. III Double 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. IV M.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 Period: To

Club Crowns An Agent A premium Agents Club called the “CORPORATE CLUB” has been formed w.e.f. M.Y 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 &

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

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. 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 , the qualifying financial year is Ex: For Club Year , the qualifying financial year is Net Lives: Lapses of previous year will be deducted from that year. i.e lapses will be deducted from lives ; lapses will be deducted from and so on Net Lives: Lapses of previous year will be deducted from that year. i.e lapses will be deducted from lives ; lapses will be deducted from and so on Here lapse means, premiums not paid for more than 6 months for 1 st Policy Year only. Subsequent year lapses will not be taken into account for CLUB Here lapse means, premiums not paid for more than 6 months for 1 st Policy Year only. Subsequent year lapses will not be taken into account for CLUB

Club Membership Eligibility Criteria 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 Add 5% on Renewal & FY+FYR+Bonus, for entry only, which is applicable from this financial year Example: If Renewal Commission for CM is then FY+FYR+Bonus should be If FY+FYR+Bonus is then Renewal Commission should be 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 agency SlClubC.M.Z.M.D.M.B.M. 1 Min Net Lives Net Lives Or Lives In Force Lives In Force Renewal First Year, First Year Renewal & Bonus

Club Membership Eligibility Criteria DISTINGUISHED AGENTS’ CLUB DISTINGUISHED AGENTS’ CLUB Minimum fulfilled one Agency Year Minimum fulfilled one Agency Year Business production of 40 LIVES with Rs.50,000 COMMISSION in a FINANCIAL YEAR. Business production of 40 LIVES with Rs.50,000 COMMISSION in a FINANCIAL YEAR. Definition No. 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

DefinitionSlClubC.M.Z.M.D.M.B.M. 1 Min Net Lives 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.2 Net Lives Or Lives In Force Lives In Force

Definition 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

Definition 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 (Qualifying Financial Year ). However, for continuation, 5% increase clause applicable from Membership year

Definition 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.

Definition Credit for revived policies: Allowed credit of ‘lives revived’ in arriving at ‘Net Number of lives’. Revival should be done on or before 31 st 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.

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) ORC.M.Z.M.D.M.B.M.Rs.35,000Rs.22,000Rs.12,000Nil Least of the above two will be paid

Low Lapse Additional Office Allowance 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

Definition 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 3 rd year – Club-membership ceases

Office Allowance for potential CM’s Club Agents who would satisfy the CM’s club conditions in 1 st Year will get Rs.12,000 and qualified in 2 nd 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

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