club rules
TRANSCRIPT
(updated upto 15.07.2005)
LIC OF INDIA::CENTRAL OFFICE
Prepared by:
Marketing/Field Personnel Desk
Compendium of various Rules and Instructions issued
from time to time in respect of
(For departmental reference only)
Club MembershipRules and Benefits
2
Index
Sl.No. Topic Page Nos. 1 Introduction 3 2
Qualifying Conditions for Membership of Agents Clubs(C.M,Z.M,D.M and B.M)
4-13
3
Application for Membership into Agents Club Annexure I
14-15
4
Application for claiming credit for revival of policies Annexure II
16
5 Lapsation Clause 17-19 6 Distinguished Agents Clubs 20 7 Life Membership of Clubs, Honorary Membership 21-22 8 Mementos to Club Member Agents 23 9 Group Insurance Scheme for Club Member Agents 24
10 Functional Privileges to Club Member Agents 25 11 Interviews for Club Membership 26-27 12
Corporate Identity Programme and printing of stationery for club member agents
28-29
13
Sales promotional Gift Items,Guest House facility Complimentary copies of Diaries/Calendars
30-31
14 Office Allowance/Addl.Office allowance,Annexure 32-36 15 Telephone Facility 37-38 16
Income Tax on Office Allowance and Fringe Benefits, Issue of Club Membership Certificates/Badges
39
17 Authorities for Admission/Termination of Agents Clubs 40 18 Group Mediclaim Scheme for Club Member Agents 41-44 19 Invitation for Annual Convention 45 20 Travelling Expenses to Agents 46 21 Daily Allowance to Agents 47-48 22
Credit for different plans of assurance for Clubmembership
49-50
23 Corporate Club 51-58 24
Application for Membership into Corporate Club Annexure III
59-60
3
Club Membership -- Rules and Benefits
Introduction:
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 institution of Clubs at 4 levels viz., Branch Manager’s Club, Divisional Manager’s Club, Zonal Manager’s Club and Chairman’s Club was 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.
A premium Agents Club called the “CORPORATE CLUB” has been formed w.e.f. M.Y. 2004-05 to motivate and recognize high performers.
Qualifying conditions and other Criteria prescribed for Membership of Agents Clubs
(Chairman’s, Zonal Manager’s, Divisional Manager’s and Branch Manager’s)
The qualifying criteria for entry as well as continuation of membership of
different clubs under both the Conditions ‘A’ and ‘B’ effective from the qualifying
financial year 1.4.2001 to 31.3.2002 and in consequence thereof club membership
eligibility for the Membership Year 2002-2003 onwards, are as mentioned below:
CRITERIA FOR MEMBERSHIP OF
Entry/continuation condition Chairman’s
Club
Zonal
Manager’s
Club
Divisional
Manager’s
Club
Branch
Manager’s
Club
* Entry under Condition ‘A’
Net Sum Assured
(Rs. In lacs)
Net No. of Lives
100
170
60
115
40
90
15
45
** Entry under Condition ‘B’
Renewal Commission
paid (Rs.)
F.Y. Commission Paid
No. of Lives in force
1,10,000
1,00,000
550
80,000
70,000
370
55,000
35,000
230
30,000
20,000
120
@ Continuation under
Condition ‘A’
Net Sum Assured
(Rs. In lacs)
Net No. of Lives
85
120
55
100
35
70
12
35
@ Continuation under
Condition ‘B’
Renewal Commission
paid (Rs.)
F.Y. Commission Paid
No. of Lives in force
1,10,000
1,00,000
550
80,000
70,000
370
55,000
35,000
230
30,000
20,000
120
5
Entry and continuation conditions will have to be fulfilled for the number of
years as specified below:
1. *Entry under Condition ‘A’ : The criteria is to be fulfilled in the
Qualifying Year and 3 out of 4 Financial Years preceding the Qualifying Year.
2. ** Entry under Condition ‘B’ : The criteria is to be fulfilled in the
Qualifying Year and 2 Financial Years preceding the Qualifying Year (i.e.
same as 3 Financial Years immediately preceding Membership Year as at
present).
3. @ Continuation under Condition ‘A’ or ‘B’ : The respective criteria is to be
fulfilled in 3 out of 4 Financial Years preceding the Membership Year.
2. Transitional arrangements:
Agents who are already members of different clubs during the membership
year 2001-2002 and those who are not members of any club but have fulfilled
the criteria for club membership for one or more relevant years for entry either
under Conditions ‘A’ or ‘B’ prior to Financial Year 2001-2002 according to the
rules prevailing immediately prior to this revision, will be allowed transitional
arrangements for two financial years 2001-2002 and 2002-2003. The
transitional arrangements are mentioned in Table I.
“Relevant years referred to herein are all those financial years prior to
Membership Years in which the qualifying criteria is to be fulfilled for gaining
entry or continuation into the club membership under either Condition ‘A’ or
‘B’.”
The transitional arrangements allowed to the eligible Agents for the
F.Ys. 2001-02, 2002-03 shall continue to be applicable till such time either one
or both these Financial Years are reckoned for considering Entry or Continuing
in a particular club.
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CRITERION FOR CLUB MEMBERSHIP UNDER TRANSITIONAL ARRANGEMENT
EFFECTIVE FROM FINANCIAL YEAR 1.4.2001 TO 31.03.2002
Table I
Chairman’s Club Zonal Manager’s Club Divisional Manager’s Club Branch Manager’s Club
Financial Year 2001-02 2002-03 2003-04 2001-02 2002-03 2003-04 2001-02 2002-03 2003-04 2001-02 2002-03 2003-04
* Entry under Condition ‘A’
Net Sum Assured (Rs. in lacs)
Net No. of Lives
75
165
85
170
100
170
48
110
54
115
60
115
30
75
35
85
40
90
11
35
13
40
15
45
** Entry under Condition ‘B’
Renewal Commission paid (Rs.)
F.Y. Commission Paid
No. of Lives in force
75000
70000
510
90000
85000
530
1,10,000
1,00,000
550
55000
45000
345
65000
55000
360
80000
70000
370
38000
20000
210
46000
27000
220
55,000
35000
230
20000
12000
108
25000
16000
114
30000
20000
120
@ Continuation under Condition ‘A’
Net Sum Assured (Rs. in lacs)
Net No. of Lives
65
114
75
118
85
120
40
85
47
90
55
100
25
55
30
60
35
70
9
26
10
30
12
35
@ Continuation under Condition ‘B’
Renewal Commission paid (Rs.)
F.Y. Commission Paid
No. of Lives in force
75000
70000
510
90000
85000
530
1,10,000
1,00,000
550
55000
45000
345
65000
55000
360
80000
70000
370
38000
20000
210
46000
27000
220
55,000
35000
230
20000
12000
108
25000
16000
114
30000
20000
120
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3. 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 had been a continuous member
of the same club for not less than 15 membership years can continue the
membership of the same club under the same condition (A or B) by fulfilling at
least 75% of the criteria applicable for that condition.
4. Condonation Clause:
The condonation clause is available for entry into all the clubs under Condition
‘A’ only. With effect from the Membership Year 2002-2003 failure to the
extent of 25% to satisfy the condition in respect of either ‘Net sum assured’ or
‘Net Number of Lives’ may be condoned if the performance on the other count,
registers an increase by at least the same percentage.
The condonation clause is to be applied only after the ‘Net Sum
Assured’ and ‘Net Number of Lives’ during any financial year, as mentioned in
previous Para are determined and such ‘Net Sum Assured’, or the ‘Net Number
of Lives’ during the year is found to be falling short of the required criteria.
5. Fulfilment of Minimum Net Business during years of failure:
Effective from Financial Year 2001-2002 an agent aspiring to enter into
or continue membership of any club must bring in the following net minimum
business in the year of failure and keep the agency in force.
Chairman’s Club
ZM’s Club DM’s Club BM’s Club
25 lacs 15 lacs 10 lacs 5 lacs
The provision of 25% concession for aged Club Member Agents as
stated in Para 3 above is meant only in respect of basic criteria for continuation
of membership under Condition ‘A’ and ‘B’ only and it is not meant to be
granted to the eligible members in the prescribed ‘Minimum Net Business’ viz.
Rs. 25 lacs, Rs. 15 lacs, Rs. 10 lacs and Rs. 5 lacs for Chairman’s, Zonal
Manager’s, Divisional Manager’s and Branch Manager’s clubs respectively.
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They will have to comply with the requirement of ‘Minimum Net Business’ in
full on par with other agents. However, only under Condition ‘A’ for entry this
Minimum Business condition will be inoperative in the first relevant year (eg.
If the Qualifying year is 2005-06, the first relevant Financial Year is 2001-02).
6 Continuation of Club Membership in the year/s of failure:
If an agent does not fulfill the condition of minimum ‘net sum assured’
prescribed in the financial year reckoned to allow him/her to continue in any of
the clubs, relaxation shall be allowed on one/two occasion/s as the case may be,
depending on the number of years the agent has been a continuous member in
the same club as per the table given below. In such a case the club membership
will be treated as continued for the number of years for which he/she has not
fulfilled the condition of ‘net sum assured’.
No. of years of continuous membership in the same
club
Relaxation allowed
05 One occasion 10 Two occasions.
However, the agent in the next Financial Year should not only make
good the shortfall but should also show an increase of at least 10% of such
shortfall. For example; the minimum ‘Net Sum Assured’ to be fulfilled by an
agent for Chairman’s Club is Rs.25 lacs. However, if there is a shortfall of Rs.
5 lacs in one year, the agent should not only make good the shortfall of Rs.5
lacs in the next year, but should also bring in an additional ‘Net Sum Assured’
of Rs. 50,000/-. In other words the ‘Net Sum Assured’ in the next year should
be Rs.30,50,000/-.
The agent during the suspended years shall continue as a non-regular
member of the club and will not be eligible for any monetary benefits including
attendance at the Convention. He/she will be eligible for functional privileges
only, provided Sr./Divisional Manager is satisfied on the basis of an interview
that the failure to bring in the minimum Net Sum Assured was due to genuine
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difficulties. In such a case Sr./Divisional Manager will issue necessary
authorisation in writing to the concerned agent.
7. Training:
Every agent who is admitted as 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/IFSERT/Jeevan Vidya Trust or training by
similar other training institute/s or by institutes engaged in on-line training as
may be approved from time to time, failing which the club member agent shall
render himself/herself ineligible for continuation of the benefit of the Office
Allowance and interest free loan/advances in the following year. The
Competent Authority, may however, at its sole discretion, allow reimbursement
of the Office Allowance and condone interest in exceptional circumstances if it
is satisfied that requirement of training could not be fulfilled due to reasons
beyond the control of the agent. The reasons for allowing the benefit etc shall
be recorded in writing.
In the latter case, the said agent shall have to undergo training positively in the
following year of continuation failing which recovery of amount so reimbursed
and/or interest condoned together with interest @ 12% shall be recovered from
his/her commission.
Note 1: The Life Members are not governed by this provision.
Note 2: Club Members aged 60 years and above are exempted.
Note 3: An agent who has undergone training at any of the above institutions even as a non-club member is deemed to have fulfilled this training requirement. Note 4:The training taken shall be valid for for a period of 4 years from the date of completion of the training. Notes 5: The MDRT Training given to MDRT Qualifiers at the Zonal Training Centres would also be counted as an approved training imparted to the agent and the certificate issued by ZTCs will be recognised as proper for the purpose of Club Membership benefits.
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8. General:
1. For the purpose of complying with the requirements of Condition ‘A’ the net
number of lives assured and the net sum assured there under (i.e. qualifying
business) should be completed from the territory of the home Branch to qualify
for membership of BM’s Club; from the territory of the home Division to
qualify for membership of DM’s Club, and from the territory of the home Zone
to qualify for membership of Zonal Manager’s Club. The net qualifying
business completed in any part of India will count for qualifying for
membership of Chairman’s Club. This clause is not applicable for the business
completed in the financial year commencing from 1.4.2004 to 31.3.2005 and
onwards which means that the business done by an agent in any part of India
will be considered for reckoning the eligibility for qualifying for membership
of any club.
2. Only a ‘Qualified Agent’ i.e., an agent who has completed the minimum
business quota as per the Agents Regulations, 1972 is eligible to enter or
continue as a member of any Club.
3. For new entrant to any club, he/she should have completed the minimum quota
of business in the last agency year which ended prior to the commencement of
membership year and in each one of the four preceding agency years.
4. If the agency is terminated for any reason whatsoever the club membership
including life membership will automatically cease. On reinstatement of
agency, the Club membership including life membership may be revived
depending on the merits of the case. If as a result of any disciplinary action
against the agent, the agency is terminated and subsequently it is reinstated by
the higher authority, then both the club membership and life membership may
be restored unless otherwise decided.
5. An agent will also lose his/her club membership if his/her agency is terminated
on account of non-renewal of license. In such a case, the Sr./Divisional
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Manager (I/C) may reinstate the club membership and life membership in
deserving cases provided the license is renewed in chain within a period of 1
year from the date of expiry of the licence. This applies to membership of all
clubs i.e, C.M,Z.M,D.M and B.M. Club.
6. Minimum business guarantee will not apply to an agent who has been
exempted from the same under the Agents Regulations, 1972.
7. Nothing contained in this set of rules shall affect the right of the Managing
Director to deny Club- membership to an agent without assigning any reason
even if he/she has become eligible to join the club or terminate the membership
of an agent from a Club if he/she is already a member of one.
8. The Managing Director reserves the right to amend, alter, relax, modify or
delete any or all the rules governing the grant or continuation of the
Membership of any or all the clubs including the grant of Life Membership and
the fringe benefits and the functional privileges thereof.
9. For continuation in the club either under condition ‘A’ or ‘B’ the club member
need to satisfy the condition for continuation under that particular condition by
which he had secured entry in to the club. A member having entered the club
under a particular condition cannot take advantage of the continuation criteria
under the alternative condition for continuation without first fulfilling the entry
criteria under the alternate condition. An agent who wants take advantage of
the continuation criteria under the alternative condition for continuation has to
fulfil the entry condition of the alternative condition with the applicable
lapsation clause also.
9. Agency with any other Insurer :
If any member/s of the family of an agent of Life Insurance Corporation of
India has taken agency with any other insurer, then the agent who is working
for LIC of India will not be eligible for grant/continuation of membership of
any Club. For the purpose of this Rule, the definition of “members of the
family” in relation to an agent will include –
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a) the spouse and children whether residing with him/her or not.
b) All immediate in-laws and first cousins staying under the same
roof with the agent .
Various terms that are used in the Club Rules:
1. The year in which an agent becomes member of a Club is known as the Membership
Year. It runs from 1st September to the following 31st August. The Financial year
immediately preceding the Membership Year is known as the Qualifying Year.
2. ‘Net Sum Assured’ and ‘Net Number of Lives’ under Condition’A’ and ‘Number of lives in force’ under Condition ‘B’
i) ‘Net Sum Assured’ in each qualifying financial year will be arrived at
by deducting from the total completed business in that financial year,
such amount of sum assured out of the business completed by the agent
in the financial year preceding the qualifying year as is treated as pucca
lapsed as on 31st March of the said qualifying financial year.
ii) ‘Net Number of Lives’ are distinct lives insured (not number of
policies) during the qualifying financial year reduced by the Number of
lives who had been insured in the financial year preceding the
qualifying financial year whose policies are lapsed as on 31st March of
the said qualifying financial year.
Credit for revived policies:
Any agent who has revived policies in respect of business completed by
him/her during the preceding financial year is allowed to claim credit to
the extent of ‘Sum assured/lives revived’ in arriving at ‘Net Sum
Assured’ and ‘Net Number of lives’ if such policies are in force as on
31st March of the qualifying financial year. However, the agent must
submit the full details of such policies revived by him/her as per the
Proforma ‘Annexure I’ and make a representation to the Branch Office
for allowing such credit within a period of 2 months from the close of
the qualifying financial year. The Branch Office after due verification
of the particulars, shall grant credit in arriving at ‘Net Sum Assured’
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and ‘Net Number of Lives’ under Condition ‘A’, only if the agent is
falling short of the required norm.
The period of 2 months from the close of the qualifying
financial year is for making a representation to the office and not for
reviving the policies upto 31st May.
iii) Number of Lives in Force:
‘Number of lives in force’ are the number of lives in force at the end of
each relevant year out of the total business completed by the agent from
the inception of the agency to the end of each such financial year. If
more than one insurance is taken on the same life in the same financial
year, it will be counted as one life only.
3. Pucca lapsed policies:
The policies under which overdue premium/s remain unpaid for more
than six months from the date of the first unpaid premium are deemed
to be pucca lapsed for the purpose of arriving at Net Sum Assured and
Net Number of Lives in determining agents eligibility for membership
of any club. All policies issued in the previous financial year which
stand pucca lapsed as on 31st March of the subsequent financial year are
to be deducted from the policies issued in the subsequent year to arrive
at the 'Net' figure for considering the agent's eligibility for Club
Membership under Condition 'A' irrespective of whether the first unpaid
premium was due in the previous financial year or the subsequent
financial year.
4. First Year Commission includes Bonus Commission paid in the financial year.
5. Commission ‘earned’ means Commission actually ‘paid’ to the agents during any
financial year.
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ANNEXURE - I
APPLICATION FOR MEMBERSHIP INTO CM/ZM/DM/BM/DISTINGUISHED AGENTS CLUB ENTRY / CONTINUATION
I request you to admit/continue me in _________ Club for the Membership Year _________ I give below the necessary data regarding my agency/business/commission etc. for your consideration :
Name of the Agent ___________________________ Code No. _________________ Address :___________________________________ ___________________________________________ ___________________________________________ Phone No. Office :_____________ E-mail ______________ Cell No._____________ Resi. :_____________ Date of Birth :__________________ Nature of conveyance ____________________ Date of Appointment : ___________ Date of supply :__________________________ Qualifi. Academic _______________ Are you having PC _______________________ Professional ______________ Bank A/c - Name of Bank __________________ Insurance _______________ SB/Current __________________ A/c No._____ __________________ Training Attended Institute Period STC/ZTC/MDC/IFSERT/ JEEVAN VIDYA/OTHERS Name of the Agent
Name of other member of the family who is an agent.
B.O. Code No.
Date of Appointment
Club Membership
Relationship
Club Membership of _____________________ (Name of Club) since______________
MDRT Membership since ____________________
NEW BUSINESS DATA (last 5 Agency Years ending before the close of Qualifying Financial Year )
Agency Year ending Policies Sum Assured(Rs) F.P.I. (Rs)
In last 5 Financial Years
F.Y. ending (1)
No. of Policies (2)
No. of lives (3)
Sum Assured (Rs) (4)
F.P.I. (Rs) (5)
Net No. of lives (6)
Net Sum Assured (Rs) (7)
Net F.P.I. (Rs) (8)
Commission earned
(other than prescribed plan) NB under Pension Plan
FYC BC RC TOTAL (Rs) LIVES. PREM. (Rs) COMM. (Rs)
15
(Rs) (9)
(Rs) (10)
(Rs) (11)
(12) (13)
(14) (15)
Net No. of lives in No. of policies No. of policies lapsed during the year
Force (16)
Revived (17)
First year lapse (18)
Others (19)
No. of claims arisen during the year Total non early
claim since agency Total (20)
Non early (21)
Early (22)
Repudiated (23)
Appointment (24)
I declare that the above details are true and correct for the best of my knowledge. I agree to abide by the rules of Club membership. I agree that my selection as Club Member/continuation as a Club Member is based on my performance/interview. I also confirm that I am not subjected to any disqualification under any provisions or Regulations of Agency Rules, 1972, Amended Agency Rules, 2000, Insurance Act, 1938, IRDA Regulations, 2000. Witness : Signature Observations/recommendations of Sr/BM : Sr/DM : RM(Mktg) : ZM :
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ANNEXURE II
Form of Application by an agent for claiming credit for Sum Assured and
Number of Lives in respect of policies revived in terms of Circular Ref: dated: .
(This form is applicable to the Qualifying F.Y. 2001-02 only. Appropriate changes be made in the form
for its use in the subsequent years.)
To, The Branch Manager, LIC of India, Branch Office, ---------------. Dear Sir,
Re: Credit for S.A., & Number of lives in respect of Policies revived for
Club Membership Year (2002-2003).
I wish to inform you that during the financial year 2001-2002, I have been instrumental in
reviving the undermentioned policies which were influenced by me in the financial year 2000-2001 and
which stood pucca lapsed in the qualifying financial year 2001-2002.
I now claim credit for sum assured and number of lives in respect of the aforesaid revived
policies for the qualifying year 2001-2002. To enable you to consider my claim, I furnish here in below
the requisite information:
Sl.No. (1)
Policy No. (2)
Name of Life Assured (3)
Sum Assured (4)
Date of comme-ncement (5)
Date of Lapse (6)
Date of revival (7)
Position of the Policy as at 31.3.2002. (8)
Kindly examine my claim and allow me credit for S.A.& No. of Lives as above for
determination of membership of ------------ club for the Membership Year 2002-2003.
Yours faithfully,
Signature of the Agent Code No.__________.
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Lapsation Clause Lapsation Clause has been introduced in the revision of club rules, 2001. Lapsation
for this purpose will be the ratio of the number of policies lapsed without payment of full first year’s premiums as at 31st March of the qualifying year out of the total number of policies issued during a financial year to the total number of policies issued during that financial year. For example, if the Membership Year is 2003-2004, the qualifying year will be 2002-2003 and the lapsation for the F.Y. 2001-02 will be the ratio of No. of Policies lapsed without payment of full first year’s premiums as at 31.3.2003 out of the total number of policies issued during 2001-02.
Illustration:- F.Y. Total No. of
Policies introduced in F.Y.(A)
No. of Policies Lapsed without payment of Full First Years’ Premium (B)
% of Lapse Ratio B/A x 100
2002-03 106 No. of Policies lapsed as at 31.3.2004 out of (A) : 12
11.32
2001-02 141 No. of Policies lapsed as at 31.3.2003 out of (A): 28
19.85
The clause for lapsation will be reckoned prospectively from the Membership
year 2002-2003 i.e. qualifying year 2001-2002. Lapsation will not be reckoned for the F.Ys prior to 2001-02 and the same has to be ignored even if it is more than 15%.
Cases where lapsation of policies secured by an agent is more than 15% are to
be dealt with as follows: a) For Existing Club Member agents: i) Where Lapsation is > 15% (no rounding off) for one year, there will not be any disincentive for the agent. ii) If the Lapsation continues to be more than 15% for two consecutive years, the agent will not be able to attend the club convention also besides this he will not be given any fresh advance for fast conveyance or housing loan till such time the lapse ratio remains greater than 15%. (iii) If the Lapsation continues to be more than 15% for three consecutive years, the agent will neither be eligible for attending the convention nor the office allowance (Stationery Allowance in case of BM’s Club Member Agent) for that particular Membership year. (iv) If the Lapsation is over 15% for four consecutive years, the agent will loose his Membership of the club.
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Lapsation is > 15% (F.Y.) M.Y. 2001-2002 2003-2004 (i) No effect 2002-2003 2004-2005 (ii) mentioned above 2003-2004 2005-2006 (iii) mentioned above 2004-2005 2006-2007 (iv) Loose Membership
Any existing club member agent whose lapsation is more than 15% continuously may loose his club membership only in the M.Y.2006-2007.
(b) For such agents who are aspiring to become Club Members:
If the lapsation of policies secured by such an agent is more than 15% for any financial year then that year will not be considered for reckoning the eligibility for entry into any club even if/she meets all the other conditions. The agent will have to qualify for one more year. If the lapsation of policies by such an agent is more than 15% for two consecutive financial years proceeding the qualifying year, then the agent shall have to start afresh. No credit will be given for the years during which he/she would have already qualified.
The agent whose lapsation is more than 15% for the F.Y.2001-2002 will not be eligible for the club membership for the M.Y.2003-2004. They have to qualify for one more year. However for the years qualified already prior to the F.Y.2001-2002 even if the lapsation is more than 15% there will not be any effect.
If an agent is qualified for entry into a club under condition ‘B’ and the lapsation
is high(15%) in any year preceding the qualifying year, the same has to be ignored then after his qualifying for one more year, he can be considered for entry into the club. In such a situation the agent should be allowed to enter the club under condition ‘B’ even if he qualifies in the Q.F.Y and 2 out of 3 F.Yrs. preceding the Q.F.Y as against the original entry condition under ‘B’. (Q.F.Y and 2 F.Ys preceding the Qualifying Year).
One time relaxation applicable for the M.Y.2003-04 in respect of Lapse ratio more than 15% but less than 18% for the F.Y. 2001-02
The following one time relaxation to all the aspirants to Chairman’s/Zonal Manager’s Club for the M.Y.2003-04 has been given:- 1. All the aspirants to C.M’s/Z.M’s/D.M’s/B.M’s club may be invited to appear for the interview even where the lapsation is more than 15% but less than or equal to 18% for the F.Y.2001-02.
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2. Revivals upto 31.3.2004 out of business for F.Y.2001-02 may be taken into account for considering the Net Lapse Ratio.
The agents who have been awarded the club membership by availing one-time relaxation in respect of lapsation (>15% but <18%) for the F.Y.2001-02 (M.Y.2003-04) are eligible for entry into higher club for the later years i.e, M.Y.2004-05 and later if they other wise satisfy the respective criteria. This is applicable only for those agents who have become club members for the M.Y.2003-04 by availing one-time relaxations in respect of Lapsation.
The relaxation (15% to 18%) under lapsation for the F.Y.2001-02 is not applicable
for those agents who qualify for any club for the M.Y.2004-05 and onwards. Treatment of Lapse ratio to the promoted/demoted club members within the club:- The Existing club member Agents who qualify for a higher club will be treated as a “New Agent” and conditions of Lapsation applicable for agents aspiring to become club members would be applicable. However, in cases of existing club member agents who are sliding down to a lower club they will be treated as an existing member of the lower club and conditions of lapsation applicable for existing club member (of the lower club) would be applicable.
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Distinguished Agents Clubs The following criteria has been prescribed for Distinguished Agents’ Clubs: The agent should have completed minimum two agency years and should be a confirmed agent. The entry condition as well as continuation would be reckoned on the basis of Agents’ performance during the financial year. The membership would also commence on 1st April following completion of two agency years provided the agent satisfies the eligibility criteria. Rural career agents/Urban career agents: The R.C.A and U.C.A would become eligible only after they have completed two agency years after stipendiary support comes to an end. The following benefits are payable to the members of the distinguished club. 1. Sales promotional Gift items -- Rs. 150/- per year. 2. Supply of letterheads, envelops and visiting cards as mentioned in the CIP 3. Reimbursement of stationery expenses. Rs. 400/-. A convention of Distinguished Agents’ club members’ along with the Branch Managers club members should be held. During such convention the members of clubs should be requested to contribute their ideas on various aspects of selling and servicing Life Insurance Business. The rules should be published in the divisional house bulletin and steps should be taken to draw a list of prospective club members so that a larger number of agents are enrolled in the said club.
CRITERION FOR (NEW & CONTINUING MEMBERSHIP) FOR DISTINGUISHED AGENTS' CLUB EFFECTIVE FROM FINANCIAL YEAR 1.4.2001 TO 31.3.2002 Entry:
Net Sum Assured (Rs. In lakhs) - 15
Net Number of Lives - 45
Continuation:
Net Sum Assured (Rs. In lakhs) - 12
Net Number of Lives - 35
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LIFE MEMBERSHIP OF CLUBS
Club Membership is a personal honour for the agent. It is earned by the agent with consistency in business for a number of years and also as a result of rendering effective service to the policyholders. It is, therefore, thought appropriate that if an agent continues his membership in a club for certain number of years he should be recognised as a life member of that particular club. With effect from the M.Y. 1986-87 the facility of awarding the Life membership is available to Chairman’s and Zonal Manager’s Clubs only.
Beginning from the Membership Year 2002-2003, Life Membership for Chairman’s and Zonal Manager’s Clubs will be granted on fulfilment of any of the following conditions:
A) Minimum age of 60 completed years as on the date of commencement of Club Membership year; and Continuous membership in the same club (either Chairman’s or Zonal Manager’s club) for not less than 15 membership years
O R B) Continuous membership in the same club (either Chairman’s or Zonal Manager’s Club) for not less than 25 membership years.
If an agent after having been a continuous member of the Zonal Manager’s Club for less than 15 years and then becomes a member of the Chairman’s Club and he/she continually retains his/her membership of CM’s Club for at least that many years that is falling short to reach 15/25 years, for being a Life Member, then in such a case Life Member of Z.M Club shall be awarded to that agent by clubbing those years in which he/she was a member of the C.M’s Club.
It may be noted that while reckoning the number of membership years
completed in either Chairman’s Club or Zonal Manager’s Club though the suspended membership year will not be counted for eligibility for life membership, but it will not be treated as a break in the continuity of membership in the club.
A non-regular life member is the one who has not fulfilled the eligibility criteria prescribed for the Chairman’s/Zonal Manager’s Club. A non-regular life member will not be eligible for any monetary benefits including participation in the Convention. Such an agent will be eligible for functional privileges only.
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Notes:-
1. An, agent who becomes a life member of a club and also qualifies for the membership of a higher club, will have the option to avail of the benefits and functional privileges of either the life membership of the lower club or the benefits and functional privileges as a regular member of the higher club. He shall not be entitled to the benefits of both the clubs concurrently.
2. The agent will continue to be a life member as long as he is an agent and does the MBG (unless he is an exempted there from) and will be entitled to exercise all functional privileges of the club concerned with reference to servicing etc. If at any point of time, he fulfils the requirements for condition of membership, he will automatically be restored to full fledged membership.
3. For continuing as an ordinary member a life member should be a “Qualified Agent” (i.e, an agent who has fulfilled the MBG as per (Agents) Regulations for continuing his life membership, unless he has been exempted under the Regulations from the annual business quota (MBG).
Honorary Membership of Chairman’s Club: Chairman may admit, at his sole discretion, an agent as an Honorary Member of Chairman’s Club, on such terms and conditions, as Chairman may lay down from time to time. Once an agent is admitted as an Honorary Member of the Chairman’s Club, he will continue to remain as such unless his Honorary Membership is withdrawn by the Chairman. An Honorary Member of Chairman’s Club shall enjoy all the privileges of the Chairman’s Club.
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Mementos to Club Member Agents The club member agents who are not covered under the Group Insurance Scheme(GIS) for club member agents shall get the memento. The value of the memento to be given to the club member agents who are not covered under the GIS scheme w.e.f. M.Y 2002-03 is as under:
Club Membership
Amount (Rs.) inclusive of taxes
packaging etc. Chairman’s 750 Zonal Manager’s
375
Divisional Manager’s
200
Branch Manager’s
100
The Life Members of Chairman’s/Zonal Manager’s Club who are covered
under GIS and non-regular Life Members ( i.e, not qualified as a regular member) are not entitled for the Mementos.
The respective Branch Offices shall arrange for the purchase and distribution of the Mementos to all the eligible Club Members. The cost of Mementos is to be absorbed by the respective Divisional Offices under the head ‘Club Expenses’. The Branch Offices will send the necessary Debit Advices to their controlling Divisional Offices. Necessary budget provisions are to be made under this account by the Divisional Offices in respect of all the Club Member Agents who are not covered under the GIS Scheme. The distribution of the Mementos should be completed before the close of the Financial Year falling in the Membership Year. For example for the M.Y.2004-2005 the distribution of the Mementos and absorption of the expenses should be completed before 31.3.2005.
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GROUP INSURANCE SCHEME FOR CLUB MEMBER AGENTS
The Group Insurance Scheme was introduced w.e.f. 1.9.1991 to provide group insurance cover to the members of the various clubs (in lieu of the annual memento).
The Manager (Sales) is designated as the ‘Master Policyholder’. The Divisional Offices should maintain proper record of all those covered by the group insurance. The sales dept. of the Divisional Office shall pay the requisite amount of premium to P&GS Unit at each Divisional Office.
The scheme is compulsory for all eligible new entrants to different clubs
provided their age is not above 64(as at the beginning of the Membership Year). A club member agent who is not eligible to join the scheme or members who have been discontinued from the scheme on account of age restriction will continue to get the benefit of the memento. Satisfactory evidence of health as required by the Corporation shall be furnished by every eligible member, at the time of his entry into the scheme. As such at the time of interview for admission to various clubs, a D.G.H. together with the form of appointment of beneficiary will be got completed. Since, at present there is no requirement of interview for agents entering into B.M’s Club, the afore said two requirements may be got completed at the time of finalising their entry into B.M’s Club.The club member agent who has joined the scheme will not be allowed to withdraw from the scheme later on unless he is disqualified to continue as a member to any of the clubs or crossed the maximum age.
Accident cover will be available under the said GIS scheme. The nature of the accident benefit will be similar to one admissible under life policy i.e. double the basic sum assured in case of death by accident. However, disability benefit is not allowed. No additional premium is to be charged for the Accident Benefit. The G.I Cover allowed to members of various clubs is as shown below:-
S.A coverage available to different clubs upto age
60(nearer birthday)
S.A coverage available to different clubs upto age
65(nearer birthday)
Club Membership
W.e.f.M.Y. 94-95 to 2002-03 W.e.f. M.Y. 2004-05 and onwards
Chairman’s 125000 240000 Zonal Manager’s 75000 120000 Divisional Manager’s 37500 60000 Branch Manager’s 18750 30000
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Functional Privileges to Club Member Agents:
The following functional privileges are allowed to Agents who are members of D.M’s Club and above.
1. Attest the signatures and thumb impressions of policyholders and claimants or
identify policyholders. 2. To receive loan/claim cheques on behalf of their policyholders/clients on
production of required authority letter from the claimant. 3. Members of the Club at the level of the Z.M’s and C.M’s Club are eligible to
attest copies of university or matriculation/higher secondary examination/SSLC certificates after satisfying that the certificate is genuine and pertains to the life proposed.
In order to facilitate the club members in the matter of quicker attention to their new business for high sum assured, the corporation has vested authority in the club members to submit moral hazard reports as per particulars given below:
MMHHRR LLiimmiittss ffoorr CClluubb MMeemmbbeerr AAggeennttss
Limits upto
Rs. A
i) ii) iii) iv)
Career agents or direct agents or agents working under a Development Officer. Members of Branch Manager's Club and Distinguished Agents' Club. Divisional Manager’s Club Zonal Manager’s Club Chairman’s Club
SUC
10 lacs
20 lacs 30 lacs 50 lacs
B i) ii)
Introduction of proposers to medical examiners and for special reports. Zonal Manager’s Club Chairman’s Club
Sum Proposed
30 Lacs 50 Lacs
The authority as mentioned above shall continue so long as they continue to be a
respective Club Member. The guidelines regarding the above are to be followed as per the instructions given by respective departments of Central Office from time to time.
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Interviews for Club Membership
The membership to the Divisional Manager’s/Zonal Manager’s/Chairman’s
Club will not be automatic. Such of those agents who qualify for membership for these clubs will be interviewed and only after their being found suitable they will be admitted to the club to which they are eligible based on their performance.
Mere fulfillment of criteria for entry to any club does not confer upon an agent the club membership unless he/she has been interviewed and found suitable for admission to the club by the Competent Authority. Every agent who is to be admitted to any club for the first time or who is to be promoted to the higher club shall be subjected to an interview by the Competent Authority. This is true even for promotion of a Zonal Manager’s Club Member to the Chairman’s Club or Divisional Manager’s Club Members to Zonal Manager’s Club. Interview for entry into the Chairman’s/Zonal Manager’s club shall be conducted by a committee constituted as per the guidelines issued by the Central Office from time to time.
More than one committee depending upon the number of candidates to be interviewed can be formed so that interviews are completed as quickly as possible.
The agent/s who do not fit into the philosophy of these clubs meant for professionals should not be admitted. It may however happen that though a few agents, who may be quite conversant with the various plans of insurance, may not be actually working in the field and selling life insurance. Such agents would not be suitable for entry to the clubs and are to be weeded out at the time of interview for entry into these clubs. The real touchstone for membership into these senior clubs is that the agent should be one who besides being conversant with the fundamentals of life insurance, various plans of the Corporation and other saving instruments and market especially Insurance market, should be working in the field and selling life insurance and providing due services to policyholders. In addition, his/her conduct and behaviour shall also be taken into account while granting the membership.
The agents who have been relegated to a lower club due to non fulfilment of
business conditions should not be called for the interview.
There will be no interview for an agent who becomes eligible for admission into B.Ms Club/Distinguished Club.
An agent who becomes eligible for admission to Divisional Manager’s Club will be interviewed by the Sr./ Divisional Manager (I/C) of the Division.
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The Regional Manager (Mktg.) in the cadre of the Zonal Manager will hold the
interviews and admit the agents into Z.M’s/C.M’s Club. The interview committee constituted for this purpose will be one R.M from the Zonal Office preferably one who has worked on the Marketing side (to be nominated by Zonal Manager), Sr./Divisional Manager(I/C) of Divisional Offices and Marketing Manager of the Division.
If an agent who has appeared for an interview before the interview committee has failed to satisfy the committee for two successive years, then such an agent may be given a third opportunity to appear for the interview. However the competent authority for allowing this will be the Zonal Manager(I/C) for interviews to the C.M’s Club and Z.M’s Club and the Sr./Divisional Manager(I/C) of the Division for the Divisional Manager’s Club. The Zonal Manager (I/C) of the Zone or the Sr./Divisional Manager (I/C) of the Division as the case may be should record the reasons in writing for allowing third opportunity. If such an agent fails to satisfy the interview committee on the third occasion then such an agent has to be debarred for two years from appearing for the interview. However, thereafter the agent may be called for an interview, in the third year, provided he/she is still satisfying the conditions of entry into the club and Sr./Branch Manager make special recommendations stating as to how he considers the agent has improved and is worth considering for entry into the club. In case of an agent who is called for an interview for the third year, as stated above, no T.A or D.A is payable to such an agent, even though the interview takes place outside his/her headquarters.
The debarring of an agent for two years from appearing for the interview in the event of failure on his/her part to satisfy the interview committee for three successive years holds good irrespective of the levels of club for which he/she was interviewed.
The interviews shall be completed in such a way that the results are declared by 31st July every year.
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Corporate Identity programme and printing of stationery for club members. The number of visiting cards, letter heads and Envelops to be supplied to club member agents are specified below:
Total number to be supplied every year
Letterheads envelops
Type of the
club Visiting cards 210mm x
297 mm 145mm x 227 mm
9” x 4” 6” x 3.5”
Chairman’s 250 250 750 250 750 Zonal Manager’s
200 250 500 250 500
Divisional Manager’s
150 250 250 250 250
Branch Manager’s
100 150 150 150 150
Distinguished 100 100 100 100 100 After the agents are made aware of Corporate Identity Programme (CIP), they may get the job of printing of stationery and visiting cards at their own level subject to confirming the parameters laid down in the CIP. Declaration of having got the job done along with the specimen copy of the stationery/visiting card shall be submitted for claiming reimbursement. However, Sr./Divisional Manager in-charge are authorised to ascertain and approve a particular rate for printing letterheads, envelops and visiting cards depending upon the printing charges prevailing at the division. Agents are the first line of contact with the general public and it is imperative that they create a proper impression among their clientele. To create uniformity and consistency in the usage of visiting cards and other official stationery used by the club member agents a Corporate Identify Programme has been designed. Part V of the said CIP deals with the design system of visiting cards and stationery that will help enhance the desirable visual impact idenfiable with LIC in the minds of their public. It is necessary that --
1. These being corporate instructions, no deviation of any nature, which may be contrary to the said guidelines is permissible.
2. All our offices are advised to keep all CIP folders properly filed so that they are readily available for the purpose of official reference.
3. The O.S dept. and Marketing dept. in particular should ensure that printing of fresh stock of all stationery items and visiting cards being used by club member agents, is strictly in according with the guidelines designs and measurements given in this CIP.
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4. All efforts should be made to impress upon the printers to strictly follow dimensions of our corporate logo, emblem and club membership logos as also to match the colours with the corporate blue and respective club membership logo colour while printing.
5. the Marketing dept. at the zonal and divisional office should ensure strict implementation of the CIP in letter and spirit.
The colour prescribed below will be used for printing the logo identifying the club
Club Membership Colour
Chairman’s Red Zonal Manager’s Blue Divisional Manager’s Green Branch Manager’s Orange Distinguished Yellow
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Sales promotional Gift items
As the name itself implies, these items are given to the club members so that they can present them to their policyholders and prospects. The Corporation is bringing out various sales promotional items such as policywallets, key chains, purses, pen sets etc. and these are sold to the agents at prescribed prices. They help agents to build up good relationship with clients and also contribute to further sales. Although priced, as a part of the fringe benefit, club members are given these gift items free of cost up to the value of such gift items as mentioned under:
Club Membership
Sales promotional gift items (including Diaries and calendars) up to the
value of Rs. Chairman’s 1400 Zonal Manager’s 840 Divisional Manager’s 500 Branch Manager’s 180
The following guidelines are to be followed while purchasing/placing order/s for sales promotional gift items:
1. Rules regarding approval and purchase as per the stores code should be followed for which adequate number of quotations to decide on lowest quotation may be called.
2. Appropriate number of items should be ordered so that there is not unnecessary accumulation of items in the office.
3. “Sales promotional Gift” items should have logo/emblem of LIC. 4. While calling for quotations quality and other specifications are to be made
clear, so that all quotations are comparable.
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LIC Guest House Facility:- “Members of clubs at each level (Chairman’s, Z.M’s, D.M’s or B.M’s clubs) would be permitted to stay at guest houses, if any, of the LIC maintained in the area of the respective offices (Central Office, or the Zonal Office or Divisional or Branch Offices) according to the level of the Club of which they are members, at the same rate and subject to the same conditions as are applicable to the employees of the Corporation”. Complimentary copies of Diaries and Calendars LIC produces diaries and calendars every year for sale to agents to help them to give as present to their clients, prospects etc. For personal use of members of the various clubs they are supplied diary/calendar every year, free of cost as per the particulars below for the year:- Applicable for the club member agents (Club Membership Year 2003-04)
Club Membership
Items given free of cost
Corporate Club
1 Table Diary(Premium), 1 Pictorial Calendar
Chairman’s 1 Table Diary( Ordinary), 1 Pictorial Calendar. Zonal Manager’s
1 Table Diary (Ordinary), 1 Pictorial calendar.
Divisional Manager’s
1 Table Diary (Ordinary), 1 Pictorial calendar.
Branch Manager’s
1 Table Diary (Ordinary).
Distinguished Club
1 Pictorial calendar.
Complimentary copy of ‘Yogakshema’ Members of Chairman’s and Z.M’s Club are entitled to a free copy of ‘Yogakshema’ every month.
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Office Allowance
It is acknowledged that maintaining an office of his/her own helps the agent to render better and efficient service to policyholders. It also helps to further his sales of new business and increase the income. It helps the policyholder and the public of the area to approach the agent and meet him/her in office for advice, assistance or help. It adds status and raises the agent’s standing in the eyes of the public. Maintaining an office, therefore, applies with greater emphasis in the case of club members. The club members have a much greater standing as compared to the ordinary agents, and therefore, an office is a must for them. With a view to help our club member, who maintains an office of his/her own for the purpose of rendering service to policyholders and claimants, the Corporation is granting Office Allowance.
Reimbursement of Office Allowance is done to the CM’s ZM’s and DM’s club members for maintaining an “Office” depending on the expenses incurred during the Membership Year which includes--
• Rent paid (Actual) • Salaries paid to Staff (Actual) • Postage incurred (Actual) • Amount spent on stationery upto a certain fixed maximum amount • Amount spend on Office maintenance and Electricity upto a certain fixed
maximum amount • Expenses on entertainment upto a certain maximum amount
“Office” should at least have the following minimum infrastructure – 1. Room of decent size that can be called an ‘office’ and should have seating
space for the agent, his staff and customers. 2. At the entrance a visible board specifying the name of the Agent, his/her club
membership, Name of the Corporation. 3. Furniture – Chairs, Table, Almirah / Other storage cabinets for keeping the
records/documents of the clients. 4. Adequate publicity of our existing/new products should be made in the office.
Needless to mention, that the office should not be indicative of the agent indulging into showing any kind of interest in the sale of products of our competitors.
5. All important stationery/manuals/relevant brochure/pamphlets/documents that would enable him to canvass business.
Care has to be taken to ensure that the office is being properly maintained by the agent before his office allowance is released. The rules regarding payment/reimbursement of Office Allowance applicable to different clubs w.e.f. M.Y.2002-03 have been envisaged in Annexure.
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The Branch Manager’s Club Members will be reimbursed stationery expenses
for a value not exceeding Rs. 1000/-. These items will enable them to maintain relevant basic records useful for running an agent’s office and render better service to policyholders and to set up an office as soon as he enters the D.M’s club.
The Sr./Branch Manager(In-charge) or an Admn. Officer to be nominated by the Sr./Branch Manager of the Branch Office where the agent is working will inspect the office/related bills/books of accounts for reimbursement of Office Allowance. The papers for sanction of reimbursement will however be sent to the controlling Divisional Office. Additional Office Allowance on account of lesser Lapsation:-
A Chairman’s/Zonal Manager’s/Divisional Manager’s Club Member agent will be eligible for ‘Additional Office Allowance’ (in addition to the Office Allowance an agent actually earns) at the following rates if the percentage of lapsation of policies is 10% or less in each of the last 3 financial years preceding the qualifying year at the following rates:
Percentage of lapsation %
Additional Office Allowance %
10 or less 5 9 or less 8 8 or less 10 7 or less 12 6 or less 15 5 or less 18 4 or less 20 3 or less 22 2 or less 25 1 or less 28
0 30
The Additional Office Allowance shall be calculated on the total Office Allowance payable to him. Branch Manager’s Club Member Agent will be eligible for Additional Stationery Allowance and the same shall be calculated on the aforesaid lines.
Additional Office Allowance will be calculated on the basis of the average of the lapsation percentages of the last three financial years preceding the Qualifying Year. The Lapsation has to be less than or equal to 10% in each of the last three years. Since the additional office allowance has been introduced during the revision of club rules, 2001 the same has to be released taking into account the lapsation percentage for –
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• Financial Year 2001-02 (for one year only) for the M.Y. 2003-04 • Financial Year 2001-02 and Financial Year 02-03 (average for two
financial years only) for the M.Y.2004-05 • M.Y. 2005-06 and onwards the calculation of “Additional Office
Allowance” three years lapsation percentage is to be taken into account i.e, F.Y.2001-02, Financial Year 2002-03 and F.Y.2003-04.
The Additional Office Allowance up to Rs. 6000 (if eligible and paid) for
maintenance of personal computer is also to be included in the Total Office allowance for the purpose of calculation of Additional Office Allowance for lapsation less than 10%. Branch Manager’s Club Member Agent will be eligible for additional Stationery Allowance and the same will be calculated on the aforesaid basis. Claiming the office allowance:-
1. The office allowance as above should be claimed by the member during the Club Membership Year but not later than six months after the expiry of Club Membership Year.
2. The reimbursement of Office Allowance shall be subject to the inspection of office, related bills, books of accounts, etc., by the Sr./Branch Manager in-charge or an officer not below the rank of Administrative Officer to be nominated by the Sr./Manager in-charge of the Branch Office where the agent is working. 3. The concerned Club Member Agent will have to submit all the original bills/receipts to the office and our offices while making the payment will affix a stamp (only on those original bills/receipts for which the reimbursement/payment has been made) to the effect that so much amount has been paid as office allowance after deducting TDS. Thereafter the original bills/receipts may be returned to the Club Member Agent after retaining the copies of the same duly certified by a Class I officer of the Corporation. The same procedure may be followed for payment/reimbursement of Telephone Expenses to the eligible Club Member Agents. The wording of the stamp to be affixed on the Bills/receipts may be as follows:
“Rs…………….. reimbursed as office allowance for M.Y…….. TDS Rs……………………….”
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Annexure i)Present rules for computing total expenses of club member agents (CM's, ZM's & DM's) for maintaining an office during the membership year include (i) Rent Paid (actual), (ii) Salaries paid to staff (actual), (iii) postage incurred (actual) and (iv) amount spent on 'stationery' upto a certain fixed maximum amount. From membership year 2002-2003, while revising the maximum limit for expenditure on stationery, expenses up to a certain maximum amount towards (i) Office Maintenance and Electricity and (ii) Entertainment, in addition to above existing items, would be included for the purpose of determining office expenses during the membership year to a club agent as provided below: Chairman's Club ZM's Club DM's Club
Expenses on Stationery
Maximum Limit
Rs.700.00 Rs.550.00 Rs.330.00
Expenses on Office Maintenance and Electricity (Expenses allowable on electricity alone will be limited to 1/4th of the actual electricity bill provided office is not at residence of the club member.
Maximum Limit
Rs.1400.00 Rs.850.00 Rs.400.00
Expenses on Entertainment.
Maximum Limit
Rs.1700.00 Rs.1000.00 Rs.550.00
ii) (a) The amount payable as 'Office Allowance' to members of CM's/ZM's/DM's Clubs with effect from Membership Year 2002-2003 would be - 50% of actual expenses determined as in (i) above
OR 7 1/2 % of total commission (FYC + RC) earned by the agent in the preceding financial year
OR
Rs.30,000.00 in the case of CM's Club Member, Rs.17,000.00 for ZM's Club Member and Rs.8,500.00 for DM's Club Members,
WHICHEVER IS THE LEAST
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NOTE: Where both the agent and his/her spouse are Club Member Agents, and then in such a case Office Allowance will be payable to only one Club Member Agent. If both the agent and his/her spouse are Club Member Agents of different clubs, then in such a case only one Office Allowance as applicable to the Higher Club will be reimbursed. In view of this the facility of payment of Office Allowance for maintaining joint office by the club member agents will no longer be available.
(b) Chairman's Club Member maintaining a personal computer shall be paid an additional office allowance at the rate of 5% of the amount in excess of the total commission over Rs.1,85,000.00 subject to a maximum of Rs.6,000.00
Note: The above additional office allowance is paid to CM’s Club Member for maintaining a personal computer i.e, expenses incurred for using the computer. This will be paid even the PC is not under AMC and no loan/advance has been taken by the agent from the corporation for purchase of the same.
iii) Branch Manager's Club Members will be entitled to reimbursement of stationary expenses upto Rs.1000.00.
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Telephone Facility
The C.M’s/Z.M’s Club Member Agents maintaining the telephone are allowed reimbursement as under:- (W.e.f. the M.Y.2004-2005 and onwards) (a) Actual amount spent on Call Charges/Rentals irrespective of the Type of Connection/ Service Provider, subject to the maximum as specified below depending on the place of the Telephone Exchange where they are maintaining the telephone.
Max. Amount to be Reimbursed/Year
Sr. No.
Place Classification
C.M’s Club Member
Z.M’s Club Member
1. Cities/ Places where MTNL operates and the number of calls inclusive of free calls allowed is 3600 viz., Mumbai & Delhi
Rs. 5310 + ST
Rs. 2310 + ST
2. Cities/ Places where BSNL operates and the number of calls inclusive of free calls allowed is 3600 viz., Bangalore; Bhopal; Chennai; Hyderabad; Ahmedabad; Lucknow; Kanpur; and Kolkata.
Rs. 6000 + ST
Rs. 3000 + ST
3. Cities/ Places where MTNL operates and the number of calls inclusive of free calls allowed is 2700. viz. Thane
Rs. 4600 + ST
Rs. 1600 + ST
4 Other Cities where the existing BSNL General Package Rent is Rs 250/- pm
Rs. 5100 + ST Rs. 2100 + ST
5 Cities where the existing BSNL General Package Rent is Rs 180/- pm
Rs. 4260 + ST Rs. 2100 + ST
6 Cities where the existing BSNL General Package Rent is Rs 120/- pm
Rs. 3540 + ST Rs. 2100 + ST
7. Rural Centers where the existing BSNL General Package Rent is Rs 210/- pm
Rs. 3960 + ST Rs. 1440 + ST
8 Rural Centers where the existing BSNL General Package Rent is Rs 150/- pm
Rs. 3240 + ST Rs. 1440 + ST
9 Rural Centers where the existing BSNL General Package Rent is Rs 110/- pm
Rs. 2760 + ST Rs. 1440 + ST
10. Rural Centers where the existing BSNL General Package Rent is Rs 50/- pm
Rs. 2040 + ST Rs. 1440 + ST
*S.T:- Service Tax
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In case there is any classification other than what is mentioned in the above chart the B.Os have to fix the maximum amount of Reimbursement taking into account the Annual Rental charges applicable to BSNL’s General Package plus the call charges @ Rs. 1/- for Urban Centers and @ Rs.0.80 for Rural Centers (as fixed by the BSNL for the place of the Telephone Exchange where the Telephone is maintained) for 3600/ 2700 calls after excluding the free calls (50 calls per month in Urban areas, 75 calls per month in rural areas) allowed per year. In case of Z.M Club Member Agent, the quantum has to be fixed by taking only the call charges. b) Actual Installation charges will be reimbursed only to the C.M’s Club Members for the Landline phone. The Z.M’s Club Member Agents are eligible for reimbursement of actual call charges only subject to the maximum fixed as above. c) No activation charges etc. will be reimbursed in case of Mobile Phones. Only the Actual Rentals plus call charges and service charges will be reimbursed subject to the maximum amount specified above as applicable to the place of the Exchange where the phone is maintained. In case of pre-paid phones the agent has to submit the cash voucher/bill along with the counterfoil of the pre-paid voucher containing the distinctive number. d) The ceiling on the maximum reimbursement (as decided above) will be revised proportionately if the rates of call charges/rentals are subsequently decreased/increased. Time Limit for Reimbursement:-
The Telephone call charges and rental charges etc. as stated above will be settled (or reimbursed) every quarter as soon as the bill is received. The claim for payment will have to be submitted within six months from the expiry of the club membership year.
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Income Tax on Office Allowance & Fringe Benefits to Club Members
I.T at the appropriate rates has to be deducted as per rules on all payments including reimbursements made to the agents towards office allowance, telephone and other items such as letterheads, visiting cards, sales promotional gift items etc.
Income Tax should also be deducted at source as per rules on the payment/reimbursement made to Branch Manager’s/Distinguished Club Member Agents towards stationery items.
However, a mention should be made in the yearly Income-Tax certificate
issued to the agent about the tax deducted at source on such items. The agents may be suitably advised to claim the expenses incurred by them while filing their Income-tax returns to the satisfaction of the assessing officer.
The above instructions will have effect from 1st of April, 2005.
Certificate of Membership:-
The members of the Agents Clubs will get a duly signed certificate of membership from the Chairman, Zonal Manager, Divisional Manager or the Branch Manager depending upon the club in which the membership is enjoyed. It is necessary that the club member agent displays the ‘certificate of membership (alongwith the Agents’ Licence) in Office maintained by them as this will impress the visitors and clients about the stature in the profession. In respect of C.M’s Club the Membership Certificates will be issued to the New Entrants to the Club only and ‘a letter certifying the continuing Membership’ will be issued to all the existing Members of the C.M’s Club by the respective Zonal Offices.
Club Membership Badges:-
The Club Membership Badges will be given only to the New Entrants to the Club.
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Various authorities for admission/termination of Agent Clubs
Competent Authority Name of the Club For admission to club For termination of
Membership of club Branch Manager’s Club/Distinguished Club.
Officer in-charge of Branch
Officer in-charge of Division
Divisional Manager’s Club
Officer in-charge of Division
Zonal Manager(I//C) of the Zone
Zonal Manager’s Club
Regional Manager(Mktg.) duly authorised by the Z.M(I/C) of the Zone. Life Membership will be awarded by Z.M(I/C) of the Zone.
Zonal Manager(I//C) of the Zone
Chairman’s Club
Regional Manager(Mktg.) duly authorised by the Z.M(I/C) of the Zone. However, Life Membership will be awarded by Chairman.
Zonal Manager(I//C) of the Zone
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Group Mediclaim to Club Member Agents
Group Mediclaim is allowed to Club Member Agents and some of the salient features are as follows: Cover for various Agent Groups are as follows:
Club Cover
Chairman’s Club Rs. 1 lakh Zonal Manager’s Club Rs. 60,000 Divisional Manager’s Club Rs. 40,000 Branch Manager’s Club Rs. 25,000
The premium for the above is shared by the club member agent and LIC on
50:50 basis. Since this is a welfare scheme, the scheme is mandatory for all the Club Member Agents. The coverage is allowed to the club member agents upto the age of 80.
All the Branch Offices are required to deduct the premium from all the Club
Member Agents from their commission in one lump sum latest by December every year and the premiums deducted should be credited to A/c code No. 3212.
It should be made clear to all the Club Member Agents that all diseases/injuries which are pre-existing are not covered .
Only such agents who are joining the scheme for the first time or joined earlier but discontinued and are again joining are required to fill in the ‘Health Declaration form’. Other agents are not required to fill in the ‘Health Declaration Forms’. Documents required for settlement of claims: (To be submitted to the designated office of the GIC/TPA as specified and informed from time to time) i) Filled and signed Claim Form ii) Original Discharge Summary iii) Original Final Hospital Bill iv) Original Cash Receipts establishing proof of payment to the hospital v) Original prescriptions from the attending doctor for the medicines purchased (alternately the Pharmacy bills can be endorsed by the doctor on the reverse)
42
vi) Original pharmacy bills vii) Reports for the investigative procedures undertaken viii) Doctor’s requisition for the investigative procedures ix) Signed blank discharge voucher x) Certificate from LIC Divisional Office (signed and stamped by the Nodal Officer) confirming Club Membership of the insured person.(Format of the certificate given at Annexure-A)
All the Zonal offices are required to send the data to Central Office and also to
the office of the General Insurer with whom the policy is renewed (details will be intimated) in the format given in the Annexure-B on a floppy (in Excel) in respect of all the Club Member Agents of their Zone (Division wise).
Important Points to be noted by the Divisional Offices.
1. Manager (Sales) to act as Nodal Officer for the Division. 2. Premium to be deducted from the commission of ALL the Club
member agents by the month of December every year. 3. List (as per the enclosed Annexure-II) to be prepared in Excel and
be given to the respective Zonal offices by the 30th November every year.
4. Health Declaration Forms of ONLY new members/discontinued but joined again to be sent in one lot to the office of the General Insurance Company by the 31st December every year.
5. Under no circumstances the claim papers etc. have to be sent to Central Office. Important Points to be noted by the Zonal Offices.
1. Consolidated list of all the Divisions in the Zone to be sent in a floppy (in Excel) to the Agency Section, Marketing Department, CO and to office of the General Insurance Company the by the 31st December every year.
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Health Declaration Form (To be filled by the agent only while joining the scheme or rejoining the scheme after a gap.)
Group Mediclaim Insurance
Member's Personal Statement Form NAME OF THE AGENT ADDRESS FOR COMMUNICATION
AGENCY CODE NO. DATE OF BIRTH SEX MALE / FEMALE DETAILS OF ANY KNOWLEDGE OF ANY POSITIVE EXISTENCE OF PRESENCE OF ANY AILMENTS, SICKNESS OR INJURY WHICH MAY REQUIRE MEDICAL ATTENTION IN IMMEDIATE FUTURE AND / OR DETAILS OF ANY AILMENT. SICKNESS OR INJURY WHICH HAD BEEN TREATED DURING THE PRECEEDING 12 MONTHS.
PARTICULARS OF ANY OTHER ILLNESS / INJURY / ACCIDENT / OPERATION SUSTAINED BY YOU IN THE PAST. NATURE OF ILLNESS / DISEASE / INJURY AND TREATMENT RECEIVED
NAME OF ATTENDING MEDICAL PRACTITIONER WITH ADDRESS AND TEL. NO.
DATE FIRST TREATED
WHETHER FULLY RECOVERED STATE YES / NO
DECLARATION - I hereby declare and warrant that the above statements are true and complete. I consent and authorize the Insurers to seek medical information from any Hospital / Medical Practitioner who has at any time attended or may attend concerning any disease or illness which affects my physical or mental health. I agree that this proposal shall from the basis of the contract should the insurance be effected. If after the insurance is effected, it is found that the statements, answers or particulars stated in this personal statement form are incorrect or untrue in any respect the Insurance Company shall incur no liability under this insurance. PLACE DATE
SIGNATURE OF MEMBER
P.S. For terms and conditions and exceptions for this insurance please be guided by Our Policy issued to LIC. Health declaration form
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Ref: LIC/ Medi Claim Annexure ‘A’
__________________ __________________ __________________ __________________
Dear Sir, Date:
Re: Settlement of Claim
This is to certify that Shri/ Ms. __________________________, Ag. Code ______________, BO _________________ under Division _________________ is a member of the Group Mediclaim Insurance Policy No. -------------------------------since ________________ . He is a member of the ___________________ Club and mediclaim premium has been deducted from his/ her commission.
Your’s faithfully,
Nodal Officer (Manager (Sales)
Stamp to be affixed
Annexure ‘B’
Format of the Data to be prepared In Excel 1. Sr. No. 2. Name 3. Ag. Code 4. BO 5. Division 6. Zone 7. Club Membership (eg.:MY 2004-2005) 8. Premium deducted (Rs.)
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Invitation for Annual Convention
A convention of the respective club members will be arranged every year. The idea of such a convention is to promote a spirit of camaraderie amongst members of a club and also to help them to share their experience and new ideas with their colleagues. Discussions/seminars on topics of importance like Underwriting, New Products and subjects of importance concerning of insurance agency are normally arranged in such conventions. Such professional conventions will help in enriching the knowledge of the participants for scientific selling.
Rules of T.E and other expenses for attending club conventions are as under: (w.e.f. MY.2002-03 and onwards)
Club Membership category
Mode of Travel allowed Out of Pocket Expenses
1. Chairman’s Air Fare (Economy Class) or II/III A.C.Sleeper.
Rs. 2500
2. Zonal Manager’s 1st Class or second class Two Tier AC or Three Tier AC Sleeper (if reservation in first class is not available)
Rs. 1400. However, in respect of club members belonging to the place where the convention is held will be paid an amount of Rs. 250/- as local conveyanceand these agents shall not be paid Rs.1400/- as out of pocket expenses.
3. Divisional Manager’s
1st Class or second class Two Tier AC or Three Tier AC Sleeper (if reservation in first class is not available)
Rs. 400. However, in respect of club members belonging to the place where the convention is held shall not be paid any out of pocket expenses.
4. Branch Manager’s 1st Class or second class Two Tier AC or Three Tier AC Sleeper (if reservation in first class is not available)
Rs. 200. However, in respect of club members belonging to the place where the convention is held shall not be paid any out of pocket expenses.
Note:-
1. Journeys to be undertaken by the shortest route. Otherwise the reimbursement would be made limiting the fare to the shortest route.
2. No separate T.E./D.A will be paid. 3. No separate Conveyance charges are allowed. 4. No Lodging/Boarding expenses are allowed
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Re: Travelling Expenses to Agents The revised rules for reimbursement of Travelling Expenses to Agents if not
specified otherwise will be as under:
Category
Eligibility
For all Agents who attend Training at various Training Centres
By train (other than Rajadhani/Shatabdi) First Class or AC III Tier. Wherever the facility of AC III tier is not existing or where reservation is not available, the agent may travel by AC II Tier (in trains other than Rajadhani/Shatabdi) and the Competent Authority to decide this will be the Sr./Divisional Manager(I/C). In case of travel by any other mode(higher/lower), the actuals incurred will be reimbursed subject to the maximum limit of III A/C(ord. train)
For all Agents who attend Educational Seminars, Conventions (other than annual club conventions), Competitions, get-together etc. at various levels.
The entitlement will be decided by the controlling office which should be within the budget sanction of the concerned office.
Whenever agents are sponsored for any Training programme or for any other purpose their entitlement of the T.E. as above or other wise is to be specifically mentioned in the communication sent to them.
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Daily Allowance allowed to Agents
The Daily Allowance payable to Agents who are required to undertake tours for Official purposes depending upon their club membership and the classification of cities are as shown hereunder : Category of Club “A” Class City “B” Class City “C” Class City Member Agent (Rs.) (Rs.) (Rs.)
Chairman’s 270 240 200
Zonal Manager’s 270 240 200
Divisional Manager’s 190 145 125
Branch Manager’s 170 125 110
Other Agents 150 100 80
1. The Members of the various Clubs as also other agents who are paid lump sum amounts towards “Out-of-pocket” expenses for club conventions, training, various developmental meets or any other occasion at the rate approved from time to time no separate daily allowance shall be admissible. 2. Classification of cities and other terms and conditions with regard to payment of Daily Allowance are as under:-
CLASSIFICATION OF CITIES:
The classification of cities viz., “A”, “B” and “C” is same as that of applicable
from time to time to the employees of the Corporation while on tour.
APPLICABILITY OF DAILY ALLOWANCE:
(i) Where free lodging and boarding are provided to an Agent at the place of halt, only 1/4th of the Daily Allowance will be admissible.
(ii) Where free boarding is provided to an Agent at the place of halt, half of the Daily Allowance will be admissible.
(iii) Where free lodging is provided at the place of halt, 3/4th of Daily Allowance will be admissible.
(iv) Daily Allowance for journey period will be paid at the rate applicable at the place of destination i.e, the place of tour.
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METHOD OF CALCULATION OF DAILY ALLOWANCE:
(i) Where the total period of absence from headquarters is more than 24 hours, each period of 24 hours or any subsequent part thereof, reckoned from the scheduled time of departure from headquarters to the actual time of arrival at headquarters will be treated as a ‘day’ and D.A paid accordingly.
(ii) Where the absence from headquarters is 24 hours or less:- (a) Where the total period of absence is less than 8 hours but more than
4 hours, D.A at half the rate will be payable. (b) Where the total period of absence is 8 hours or more, D.A at full
rate will be payable. INCIDENTAL CHARGES:
The method of allowing the incidental charges are same as those are applicable
to the employees of the Corporation while on tour i.e., actual incidental expenses, but not exceeding half the Daily Allowance payable to them for each completed journey.
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Club Membership and Credit for Business under different plans of assurance Unless other specified under any plan of assurance, the credit for the business done by any agent should be allowed in full in respect of the number of lives, premium income, commission etc for club membership purpose. Some of the plans of assurance which are to be dealt with in following manner in the matter of credit for club membership purpose.
1. Group Insurance Business will not be taken into account for the purpose of Club Membership.
2. If an agent secured two policies one under Jeevan Saathi Plan on the lives of wife and husband jointly and the other policy under any individual plan on the life of either husband/wife. In such a case the credit of only one life will be given to an agent.
3. (i) Under Bima Nivesh Claim the number of Lives and Sum Assured will be counted while considering entry or continuation of Club Membership under condition ‘A’ of the Club Membership Rules. (ii) 15% of First Year Commission paid under Bima Nivesh Plan will be considered for qualifying and continuation norms under condition (B)
4. 50% of credit for lives and 100% of commission credit to be given while no credit for SA and premium to be allowed under Varishtha Pension Bima Yojana.
5. The credit for business under individual pension plans to the agent for the purpose to qualify or to continue for club membership from the year 2000-01 has been withdrawn. However, the same has been restored again with effect from the Membership year 2002-03 on the same lines as was given earlier prior to the withdrawal the credit.
6. Credit for Bima Plus Plan:- Credit will be given for the number of lives, sum assured and premium income received under the plan.
7. Credit for Future Plus Plan:- No. of Lives Full S.A Full S.A for which the
Life cover is opted for. Commission Full
*For giving any credit the top-up (additional premium) and commission on such top-up premiums are to be excluded.
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Annuity Business for Agents’ Club Membership:
For determining the eligibility for agents for membership of various agents’ clubs credit of sum assured may be given to the extent of purchase price in case of Immediate Annuity policies and to the extent of cash option available at the vesting date in the case of Deferred Annuity policies. As regards number of lives, actual number of lives assured may be taken into account. Further, the commission paid to the agents under the aforesaid policies may also be taken into account for the purpose of condition ‘B’.
1. If annuity policies are sold to different persons (though the purchaser may be the same) the policies will be treated as on different lives.
2. If annuity policies are sold to different purchasers (though the annuitant will be the same) the policies will be treated as on different lives.
3. Regarding sale of more than one policy to a person where-under the purchaser is also the Annuitant, the policies may be treated as on one life only.
4. Joint Life Annuities may be treated as policies on one life. Jeevan Dhara and Jeevan Akshay:
Sum Assured equivalent to purchase price in case of single premium policy, in case of policies other than single premium the total premium payable during the deferment period and the number of lives under Jeevan Dhara/Jeevan Akshay plans will be taken into consideration while considering entry or continuation of club membership under condition ‘A’ of the Club Membership Rules. First Year and/or Renewal Commission under the plans will be considered for qualifying and continuation terms under condition ‘B’. Number of lives in force under Jeevan Dhara Claim before vesting alone will be considered for terms under condition ‘B’. Jeevan Suraksha Plan:-
Sum Assured credit equivalent to 1/3rd of the notional cash option (resultant figure to be rounded off to the nearest multiple of hundred) in case of Jeevan Suraksha Policy will be taken into consideration while considering entry or continuation of Club Membership under condition ‘A’ of the Club Membership Rules. First Year Commission or Renewal Commission will also be considered for entry or continuation under condition ‘B’ of the Club Membership Rules. For the purpose of Number of lives Jeevan Suraksha Plan will be reckoned. It should be noted that number of lives in force under Jeevan Suraksha Plan before vesting alone will be considered for the purpose of the rules under condition ‘B’. As the proposer and annuitant happen to be the same person under Jeevan Suraksha Plan, his multiple policies will mean policies on a single life only and appropriately reckoned.
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Formation of Corporate Club
The Corporate Club has been formed w.e.f. the Membership Year 2004-2005. The
following criteria has been prescribed for Corporate Club.
• The qualifying year for this Club would be a Financial Year. • The first Membership Year would be 01.09.2004 to 31.08.2005 and the first
qualifying financial year would be 2003-2004.
I. The qualifying condition for entry and continuation to the Club would be same and would be as under:
• Agent should be a MDRT qualifier for two consecutive years proceeding the
qualifying financial year. For the M.Y. 2004-05 Agent should be a MDRT qualifier for the Calendar years 2001 and 2002.
• Commission Requirements: (for entry and continuation) (a) First Year Commission paid only on LIC business (excluding
Bonus Commission, Commission on P&GS business/ Commission on Mutual Fund Business) at least double of MDRT Production Requirement (FYC basis) to be fulfilled in the qualifying financial year and also in the financial year preceding the qualifying year.
Eg: If the MDRT Production Requirement (FYC basis) for the
Calendar Year 2002 and 2003 is Rs. 4,97,497/- and Rs 5,19.200/- respectively then the agent can be considered for the Corporate Club only if he has been paid Rs. 9,94,994/- and Rs 10,38,400/- First Year Commission (on LIC business) as stated above in the FY 2002-2003 and FY 2003-2004 respectively. OR
(b) 75% of the First Year Commission paid of what is stipulated as at (a) above AND Rs 10 lacs of Renewal Commission paid during each of the qualifying financial year and also in the financial year preceding the qualifying year.
Eg: If the MDRT Production Requirement (FYC basis) for the Calendar Year 2002 and 2003 is Rs. 4,97,497/- and Rs 5,19.200/- respectively then the agent can be considered for the Corporate Club only if he has been paid at least Rs. 7,46,246/- (i.e. 75% of Rs 9,94,994/-) and Rs 7,78,800/-(i.e. 75% of Rs 10,38,400/-)First Year Commission (on LIC business) as stated above along with Rs. 10 lacs of renewal Commission in each of the FY 2002-2003 and FY 2003-2004 respectively.
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• First year Lapsation not to exceed 15%. Eg. While reckoning the Membership for the Qualifying Year 2003-2004, the First Year Lapsation Ratio for the FY 2002-2003 as at 31.03.2004 will be considered. (as explained in the Revised Club Rules-2001)
II. Interview for Club Membership:
Mere fulfillment of Criteria for entry to this Club does not confer upon an agent the Club Membership unless he/ she has been interviewed and found suitable for admission to the Club by the Competent Authority. A three member committee constituted at the Zonal Level will conduct the interviews for the Corporate Club. The Regional Manager (Mktg.) will be the chairman of the committee and the two other members (not below the cadre of Regional Manager) are nominated by the Zonal Manager (I/C) of Zone.
III. Benefits:
• Interest free car Advance of-
Actual price of the Car OR
Last two Years’ Renewal Commission. OR Rs 10 lacs, WHICHEVER IS LESS
If the agent does not qualify for the “Club” later then interest will be levied on the outstanding advance as per the prevailing rules.)
(Note: However as a one time relaxation the Car loan for the purchase of the superior model car for those qualifiers who have earlier availed of Car advance will be considered subject to the repayment of the outstanding advance of the existing car in one lump sum.
• Office Allowance: For computing total expenses of Club Member agents for maintaining an office during the Membership Year include
a) Rent Paid (actual) b) Salaries paid to the staff (actual) c) Postage expenses incurred (actual) d) Amount spent on stationary upto a maximum of Rs. 700/- e) Expenses on office maintenance and electricity upto a maximum of Rs.
1400/- (Expenses allowable on electricity alone will be limited to 1/4th of the actual electricity bill provided the office is not the residence of the Club Member.
f) Expenses on entertainment upto a maximum of Rs. 1700/- g) Expenses for maintaining personal computer.
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The amount payable as Office Allowance would be - 50% of the actual expenses as determined above
OR Rs 45,000/-, WHICHEVER IS LESS.
Note: Where both the agent and his spouse are Corporate Club member agents, then in such a case office allowance will be paid to only one member agent. If the spouse of the Corporate Club member is also a member of one of the CM’s/ZM’s/DM’s/BM’s Club then only the Corporate Club member will be paid the office allowance. The Office allowance should be claimed during the Club Membership Year but not later than six months after the expiry of Club Membership Year. • Additional Office allowance of Rs. 5,000/- if lapsation is less than or equal to
5%. • Facility to attend a Convention/ Educational Seminar
OR Reimbursement of Air Fare of Rs. 60,000/-(including applicable taxes) or actuals whichever is lower towards Air Fare to the members of the corporate Club who attends the MDRT Annual Meet at USA/Canada.
• Reimbursement of Rs. 15,000/- to the Qualifiers who attend the MDRT Annual Meet at USA/ Canada.
• The following fringe benefits will be paid at par with CM’s Club/ ZM’s Club/
DM’s Club/ BM’s Club to qualifiers of the Corporate Club fulfilling the conditions of respective clubs.(as per the revised club Rules, 2001)
a) Sales Promotional Gift Items (including Diaries and Calendars) b) Supply of letterheads with envelopes and visiting cards c) Telephone facility d) Group Mediclaim Scheme.
e) Group Insurance Scheme for Club Member Agents.
• The following advances will be paid at par with CM’s Club/ ZM’s Club/ DM’s Club/ BM’s Club to qualifiers of the Corporate Club fulfilling the conditions of respective clubs.(as per the Revised Scheme of Advances for Agents, 2001)
a) Advances for Office Equipments b) Other Advances (for Miscellaneous Purposes) c) Flood, Drought, Cyclone Advances d) Festival Advance e) Advance for Computers f) Advance for training
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IV. Agency with other Insurer:
If any member/s of the family of an agent of the Corporation has taken up agency with any other life Insurer, then the agent will not be eligible for the admission to/ continuation of the membership of this Club. For this purpose, “members of family” in relation to the agent will include-
a) Spouse/ Children whether residing with him or not. b) Brothers/ Sisters, all immediate in-laws and first cousins staying under
the same roof with the agent.
V. Pre MDRT Meet, MDRT Conventions at Corporate level, Zonal level and Divisional level will not be held.
VI. The agent/ member will be required to submit the claim of membership/
continuation on prescribed format as per proforma (Annexure III) within 30 days of New Business closing. The office will verify the claim within 7 days of receipt. The interviews shall be completed in such a way that the results are declared by 31st July every year.
VII. Roster to be prepared for the Qualifiers of this Club in the format specified. If
any member of this Club does not qualify for continuation then depending on the performance, his/ her status (CM’s Club/ ZM’s Club/ DM’s Club/ BM’s Club/ Dist. Club/ No Club) will be ascertained.
VIII. Nothing contained in these rules shall affect the right of the Managing Director to
deny Club Membership to an agent without assigning any reason even if he/ she has become eligible to join the Scheme or terminate the membership of an agent from the Club.
IX. The Managing Director reserves the right to amend, alter, relax, modify or delete
any or all the rules governing the grant or continuation of the membership of the Club including the benefits thereof.
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Revision in the Rules and Benefits for CORPORATE CLUB w.e.f. M.Y. 2006-2007
The rules and benefits for the Corporate Club w.e.f. the MY 2006-2007 would be as under:
The qualifying condition for entry and continuation to the Club would be same and would be as under:
• Commission Requirements: (for entry/ continuation) First Year Commission paid only on LIC business (excluding Bonus Commission, Commission on P&GS business/ Commission on Mutual Fund Business) at least Rs. 11 lacs in the qualifying financial year and also in the financial year preceding the qualifying year. Note- Those who have already met the production requirement in F.Y.2004-05 basing on the earlier criteria, in order to qualify/continue for the MY 2006-2007 they should have been paid FY Comm. of Rs. 11 lacs in the FY 2005-2006.
• The agents with a minimum 5 years standing as on 1st September of the Membership Year will be allowed to join the club.
Eg:- The agents with a minimum 5 years standing as on 1st September, 2006 will be allowed to join the club for the M.Y 2006-2007. However, the members of the Corporate Club (MY 2005-2006) if qualifying for MY 2006-2007 and thereafter should be allowed to continue even if they are not having the minimum 5 years standing.
• The qualifying criteria are liable to be revised every year/ alternate year.
• First year Lapsation not to exceed 10%.
Eg. While reckoning the Membership for the Qualifying Year 2005-2006, the First Year Lapsation Ratio for the FY 2004-2005 as at 31.03.2006 should not exceed 10%. (As explained in the Revised Club Rules-2001)
• No relaxation whatsoever will be given for qualifying for the Club.
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. Benefits:
• Interest free car Advance of-
Actual price of the Car OR
Last two Years’ Renewal Commission. OR Rs 10 lacs, WHICHEVER IS LESS
Note: 1. However as a one time relaxation the Car loan for the purchase of the
superior model car for those qualifiers who have earlier availed of Car advance under Scheme of Advances to Agents will be considered subject to the repayment of the outstanding advance of the existing car in one lump sum.
2. If the agent does not qualify for the “Club” later then interest will be levied on the outstanding advance as per the prevailing rules. However if he is qualifying for the lower club i.e. CM’s/ZM’s Club then the outstanding balance of Car advance will be bifurcated into interest free and with interest portions.)
• Office Allowance:
For computing total expenses of Club Member agents for maintaining an office during the Membership Year include
h) Rent Paid (actual) i) Salaries paid to the staff (actual) j) Postage expenses incurred (actual) k) Amount spent on stationary upto a maximum of Rs. 700/- l) Expenses on office maintenance and electricity upto a maximum of Rs.
1400/- (Expenses allowable on electricity alone will be limited to 1/4th of the actual electricity bill provided the office is not at the residence of the Club Member.
m) Expenses on entertainment upto a maximum of Rs. 1700/- n) Expenses for maintaining personal computer.
The amount payable as Office Allowance would be -
50% of the actual expenses as determined above
OR Rs 45,000/-, WHICHEVER IS LESS.
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Note: Where both the agent and his spouse are Corporate Club members, then
in such a case office allowance will be paid only to one member agent. If the spouse of the Corporate Club member is also a member of one of the CM’s/ZM’s/DM’s/BM’s Club, then the Corporate Club member only will be paid the Office Allowance. The Office allowance should be claimed during the Club Membership Year but not later than six months after the expiry of Club Membership Year. • Additional Office allowance of Rs. 10,000/- if lapsation is less than or equal to
5%.
• Facility to attend a Training Programme/ Educational Seminar (India/ Abroad) for which an amount of Rs. 30,000/- will be reimbursed. OR Reimbursement of Air Fare after attending the MDRT Annual Meet at USA/ Canada.
• Reimbursement of Rs. 15,000/- to the Qualifiers who attend the MDRT Annual Meet at USA/ Canada.
• No linkage of fringe benefits with any of the other clubs
(CM’sZM’s,DM’s/BM’s). The following fringe benefits will be given to the Corporate Club Members.
A. Total Reimbursement for Telephone facility: Rs. 10,000/- p.a.(Including
landline (call charges and rental) and mobile (only call charges).)
B. Supply of letterheads with envelopes and visiting cards (as per CIP). Quantity may be specified as i) Letter heads – 1000 per year ii) Visiting Cards – 500 per year.
• Interest free Computer/ PC/ Laptop Advance upto a maximum of Rs. 1 lac
(If the agent does not qualify for the “Club” later then interest will be levied on the outstanding advance as per the prevailing rules and as per Note 2) under Car advance)
• Group Insurance of Rs. 4,40,000/-. Memento in lieu of those above 65 years of Rs. 1500/-
• Group Mediclaim of Rs. 100,000/- (Full premium to be borne by the Corporation)
• Reimbursement for undergoing Computer Training at a reputed training Institute (to be decided by the concerned Sr. Divisional Manager)- Rs. 5,000/-
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• The other advances will be at par with Club to which the qualifiers of the Corporate Club qualify for. (as per the Revised Scheme of Advances, 2001) The advances which were granted to an agent prior to his becoming Corporate Agent shall continue under the earlier scheme or the agent can also opt for premature repayment.
• The following Functional privileges are allowed for the Corporate Club
Members.
1) MHR limit-up to Sum under consideration of Rs. one Crore. However, the MHR given by these agents will not be counted for allowing 20% increase in the financial eligibility. 2) Introduction for FMR and special reports up to sum proposed Rs. One crore.
Other Functional privileges relating to policy servicing will be at par with C.M’s Club Member Agents. (For this instructions issued from to time by respective Depts. at Central Office are to be followed)
• Annual Convention for the Corporate Club members.
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(This form is applicable to the Qualifying F.Y. 2006-07 only. Appropriate changes be made in the form
for its use in the relevant years.)
Annexure III(M.Y.06-07) (Proforma)
APPLICATION FOR THE MEMBERSHIP INTO CORPORATE CLUB
I request you to admit/continue me in the Corporate Club for the Membership Year:………………. I give below the necessary data regarding my agency / performance etc. for your consideration.
1. NAME____________________________ AGENCY CODE_________
2. MALE/ FEMALE: ____________________________________________
3. ADDRESS (RES.)____________________________________________
____________________________________________
RESIDENTIAL TELEPHONE _________________________________
4. WHETHER MAINTAINING OFFICE (Y/N)_______________________
IF YES,
ADDRESS (OFFICE)__________________________________________
__________________________________________
OFFICE TELEPHONE ________________________________________
MOBILE:________________ E-MAIL ID_________________________
5. DATE OF BIRTH:_______________
6. ACADEMIC QUALIFICATION:
Academic:
Professional:
Technical:
7. DATE OF APPOINTMENT AS AN AGENT:______________________
8. WHETHER DIRECT OR ATTACHED TO A DEVELOPMENT OFFICER:
__________________________________________________
IF ATTACHED, Name/ Code of the DO:__________________________
9. FULL TIME/ PART TIME:_____________________________________
10. NATURE OF CONVEYANCE: DATE OF SUPPLY:
11. IF PC AVAILABLE:
12. TRAINING PARTICULARS:
SR.NO. TRAINING DEATILS ATTENDED AT PERIOD (MM/YY)
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13. PERFORMANCE AND COMMISSION PARTICULARS :
FINANCIAL YEAR FIRST YEAR COMMISSION PAID
RENEWAL COMMISSION PAID
2005-2006 Not Applicable 2004-2005
14. LAPSATION DATA FINANCIAL YEAR
TOTAL NO OF POLS INTRODUCED IN THE FY
(A)
NO OF POLICIES LAPSED WITHOUT PAYMENT OF FYP AS ON 31/03/2006
(B)
%AGE LAPSATION
(B)* 100 (A)
2004-2005
15. CONTINUOUS MEMBER OF THE MDRT SINCE THE TEAR:_______
I AGREE THAT THE ABOVE DETAILS ARE TRUE TO THE BEST OF MY KNOWLEDGE.I AGREE TO ABIDE BY THE
RULES OF THE CLUB MEMBERSHIP.
SIGNATURE