slide1 n.
Skip this Video
Download Presentation
Club Rules – 2014-15 F.Y.

Loading in 2 Seconds...

play fullscreen
1 / 22

Club Rules – 2014-15 F.Y. - PowerPoint PPT Presentation

  • Uploaded on

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.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Club Rules – 2014-15 F.Y.' - cicada

Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

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
  • 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


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.
  • 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
  • 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
  • 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.
  • 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.
  • 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


Least of the above two will be paid

low lapse additional office allowance
Low Lapse Additional Office Allowance

0% Lapse Will Get 30% Addition

  • 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
  • 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!

Plan Today, You Can Qualify

In Remaining days of F.Y.

For Any Club, At Least For 1st Year

Thank You