Club Rules – 2014-15 F.Y.
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Club Rules – 2014-15 F.Y. Chase Your Desire Human Can Do Anything. Agents' Pledge. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. While canvassing for Insurance I shall consider my client’s needs & benefits as most important. I shall respect my “Profession” with high esteem.

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Club Rules – 2014-15 F.Y.

Chase Your Desire

Human Can Do Anything

Agents' Pledge











While canvassing for

Insurance I shall consider my

client’s needs & benefits

as most important

I shall respect my

“Profession” with

high esteem

I shall update my knowledge,

improve my confidence &

professionalism, by continuous

studies & training, so as to

render the right advice to

My clients

I am proud to be

“ AGENT “ of

L.I.C. of India

I shall faithfully &

Promptly serve my

clients & their


I shall explain my prospects

about the products

truthfully & correctly

I shall ensure that premiums

are remitted regularly &

prevent them from


I shall strain my every nerve

to climb up in the ladder

of “Club Membership” &

also create new records

year after year

I shall plan my work

Properly & work hard

to realize my plans

I shall respect the rules

& regulations of the

Corporation & I will

Strictly adhere too

Practice These 10 Commandments

Club crowns an agent
Club Crowns An Agent

  • Agents are the backbone of LIC of India.

  • The agents have therefore to be nurtured and cultivated to grow up in the profession, acquiring sufficient knowledge, skills and competence to discharge their duties effectively towards policyholders and clients.

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

Club crowns an agent1
Club Crowns An Agent

  • Distinguished Agent, Branch Manager’s, Divisional Manager’s, Zonal Manager’s, Chairman’s , MDRT & Corporate Clubs

  • Brought into existence with effect from 1.4.1971.

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

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

Club crowns an agent2
Club Crowns An Agent

  • M.D.R.T. is for one Calendar Year.

  • Current is called M.D.R.T. 2015

  • On First Year Commission basis: Rs.8,45,300 for M.D.R.T. ; Rs.25,35,900 for C.O.T. & Rs.50,71,800 for T.O.T

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

  • Single Premium credit will be 6%

M d r t competition by c o
M.D.R.T. Competition by C.O.

Period: 01.01.2014 To 31.03.2014

Club crowns an agent3
Club Crowns An Agent

  • A premium Agents Club called the “CORPORATE CLUB” has been formed w.e.f. M.Y. 2004-05 to motivate and recognize high performers.

  • Continues two financial year commission taken

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

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

Club membership


Calendar Year: 1st Jan to 31st Dec

Financial Year: 1st Apr to 31st Mar

Club Year : 1st Sep to 31st Aug

MDRT Year: 1st Jan to 31st Dec

Corporate Club Year: 1st Apr to 31st Mar

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

For 1st year of agency broken period is additional

To qualify
To Qualify

  • To declare a club an agent should qualify for the “Qualifying Year” and “2 out of 3 years” preceding the Qualifying year or continuously for 3 years, inclusive of Qualifying Year.

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

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

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

Club membership eligibility criteria

Up to 100% shortfall, can be made good with equivalent FY+FYR+ Bonus commission

This is for whole agency period, taken from inception of agency

Up to 50% shortfall, can be made good with equivalent Renewal commission

Club Membership Eligibility Criteria

Example: If Renewal Commission for CM is 120000 then FY+FYR+Bonus should be 280000. If FY+FYR+Bonus is 160000 then Renewal Commission should be 240000

Like above you have to apply for others clubs also

This is for Financial Year

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

Club membership eligibility criteria1
Club Membership Eligibility Criteria FY+FYR+ Bonus commission


  • Minimum fulfilled one Agency Year

  • Business production of 40 LIVES with Rs.50,000 COMMISSION in a FINANCIAL YEAR.


No. of years for which Criteria will have to be fulfilled: Qualifying Year and in any two out of threefinancial Years preceding the Qualifying year for both Entry and Continuation

Definition FY+FYR+ Bonus commission

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

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

Definition FY+FYR+ Bonus commission

  • Relaxation Clause:A shortfall in 1st Yr Commission may be condoned maximum up to 50%, provided it is compensated with the same or higher percentage increase on the basic condition prescribed for Renewal Commission paid

  • Or

  • A shortfall in Renewal Commission, it may be condoned up to a maximum of 100% provided it is compensated with the same or higher % increase on the basic condition of 1st Yr Commission paid

Definition FY+FYR+ Bonus commission

  • Escalation Clause: 5% increase in each year on the previous year’s Entry criteria in respect of First Year Commission paid & Renewal Commission paid applicable for entry from the Membership Year 2014-15 (Qualifying Financial Year 2013-14).

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

Definition FY+FYR+ Bonus commission

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

Definition FY+FYR+ Bonus commission

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

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

Definition FY+FYR+ Bonus commission

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

Fringe benefits
Fringe Benefits FY+FYR+ Bonus commission


Least of the above two will be paid

Low lapse additional office allowance
Low Lapse Additional Office Allowance FY+FYR+ Bonus commission

0% Lapse Will Get 30% Addition

Definition FY+FYR+ Bonus commission

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

Office allowance for potential cm s club
Office Allowance for potential CM’s Club FY+FYR+ Bonus commission

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

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

Moral Hazard Report Limit

Its Not Too Late! FY+FYR+ Bonus commission

Plan Today, You Can Qualify

In Remaining days of F.Y.

For Any Club, At Least For 1st Year

Thank You