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CLUB

MEMBERSHIP

RULES
&
BENEFITS
Club Membership
Club Rules – Major Milestones So Far

•01.09.1972 - Benefits were introduced for Club


Members.
• Year 1982 - Concept of Life Membership was
introduced
• M.Y. 1986-87 - First Revision of Club Rules.
• M.Y. 1992-93 - Second Revision of Club Rules.
• M.Y. 2002-03 – Third Revision of Club Rules.
01.09.2014 to
Financial Year 31.08.2015

01.09.2015 to
Financial Year 31.08.2016

01.04.2016 to
Qualifying Year 31.08.2017

01.09.2017 to
Membership Year 31.08.2018
• An agent who has completed the age 60 as on the date
of commencement of Club membership year and had
been continuous member of the same club for not less
than 15 membership years or Life members of CM and
ZM Club can continue the membership of the same
club by fulfilling at least 75% of the criteria applicable to
that club
Club Membership Rules
Revised in October 2009 & Modified in April 2010
[Covers Distinguished Club]

Monday, March 12, 2018


THANK
YOU
New Club Rules
• Condition ‘A’ & ‘B’ merged together
• Every Club Member should compulsorily introduce New
Business every year
• In addition to it, they can qualify either by doing higher
New Business or having more inforce policies.

Monday, March 12, 2018


Escalation Clause
• From M.Y. 2017-18, a 5% escalation clause in
respect of FYC paid and Renewal Commission
paid shall be applicable on previous years Entry
criteria.
• In respect of Continue Member, the 5%
escalation clause will be applicable from M.Y.
2018-19
• Other conditions have to be fulfilled.
Conditions
    CM ZM DM BM

MY QY FYC RC FYC RC FYC RC FYC RC

2018-19 2017-18 221 221 155 155 100 67 56 39

2017-18 2016-17 210 210 147 147 95 63 53 37

2016-17 2015-16 200 200 140 140 90 60 50 35

2015-16 2014-15 200 200 140 140 90 60 50 35

2014-15 2013-14 200 200 140 140 90 60 50 35


3/12/2018 AGENTS CLUB RULES 10
No. of years for which Criteria will have to
be fulfilled

• Qualifying Year and


• 2 out of 3 Financial Years preceding the Qualifying
year
• For both Entry and Continuation

Monday, March 12, 2018


Condition No.1
• Minimum Net Number of Lives
to be fulfilled
• In the Qualifying Year and
• In each of the years reckoned
• For Entry/Continuation of club membership
• This is a mandatory condition
(40,30,20,15 Lives)
Monday, March 12, 2018
Condition No. 2
• Net Number of Lives/ Number of Lives in force
• An agent can bring in either
a) Net number of lives
or
b) should have the requisite number of lives in force
in the years reckoned for his entry/Continuation of his/her club
membership
• He/she has to fulfill either condition 2a or 2b.
• 2a (130,100,80,50) OR 2b (600,400,250,150)

Monday, March 12, 2018


Relaxation Clause
• Shortfall in fulfillment of First Year Commission (paid)
condition
• Condonation maximum up to 50%,
To be compensated with same or higher percentage
increase
• on the basic condition prescribed for Renewal
Commission paid
• (FYP 200,140,60,35000, Ren 200,140,90,50000)

Monday, March 12, 2018


Relaxation Clause
• Shortfall in fulfillment of Renewal Commission paid
condition
• Condonation up to a maximum of 100%
• To be compensated with same or higher percentage
increase
• on the basic condition prescribed for First Year Commission
paid.
(Ren 200,140,90,50000)
Monday, March 12, 2018
Net Lives
Example :
• QY 2012-13 160 Lives Total 160 Lives
• QY 2013-14 150 Lives Total 310 Lives
• QY 2014-15 170 Lives Total 480 Lives
• QY 2015-16 140 Lives Total 620 Lives
• MY 01.09.2016 to 31.08.2017
Policy Lapse of QY 2014-15 in FY 2015-16 is 35 Lives
• Hence Net Lives QY 2015-16 is 140–35 =105 Lives
• If policies revived up to 31/03/2016 should add in QY 2015-16

Monday, March 12, 2018


• An agent who has completed the age of 60 years as on the date of
commencement of Club M.Y. and has been continuous member of the
same club for not less than 15 membership years is eligible for life
membership. Life member of CM’s and ZM’s Club may only fulfill 75%
of the criteria applicable for the club. Net lives is not mandatory.
• If an agent does not fulfill the condition of minimum net no. of lives,
he may be allowed to continue in the club by granting relaxation of
one or two occasions if agent is continuous club member for 5 and 10
years resp. He will get the monetary benefits in such a year of failure.
• If the agent does not fulfill any other condition, then he will be non-
regular club member and will not be eligible for any monetary benefits
and Convention.
• Interviews of Club Members
• No TA/DA for third interview.
• Training of Club Member agents at ZTC/ STC/ JVT or
training by similar other training institutes.
• Life Membership for CM’s and ZM’s Clubs.
• Club Membership badges to new entrants.
• Certificate of Membership.
• Complimentary copies of Diaries and Calendars.
• Complimentary copy of Yogakshema.
• Convention for club member agents.
• Agency with any other Insurer.
Distinguished Agents Club
• In order to promote professionalism amongst a larger number of agents
and to enhance insurance overage at a faster pace, Distinguished Agents
Club at Branch level was formed w.e.f 01.04.1999.
• The agent should have completed minimum one agency year and should
be a confirmed agent.
• He should fulfill Net No. of Lives – 40 and FYC paid Rs. 50000/-.
• The following benefits are payable:-
1.Sales Promotional Gift Items - Upto Rs. 400/-
2.Reimbursement of Stationery Expenses – Upto Rs. 500/-
3.Letterheads, envelopes and visiting cards – 100 nos
Corporate Club

• Corporate Club formed w.e.f. 2004-05.


• Commission Requirements for Entry/ Continuation are FYC paid
only on LIC business (excluding Bonus Commission, Commission
on P&GS business/ Commission on Mutual Fund Business) at Rs.
18 lacs in Qualifying F.Y. and F.Y. preceding the Qualifying Year.
• Agents with a minimum 5 years standing as on 1st Sept of the M.Y.
• First Year lapsation not to exceed 10%.
• Rosters of the Agents should be sent along with the financial year
earnings of the agent.
Corporate Club

• Interviews are held for admission to the Club.


• Annual Convention shall be held for the members.
• Notional Credit of First Commission accrued is given to
Corporate Agents in respect of the proposals completed
during the extended completion period. The Division
should sent the papers with the recommendations of the Sr.
Divisional Manager along with the financial year earnings
of the agent and extract of agency earnings for the
Financial Years in which the agent becomes eligible and
the next F.Y. when the commission cycle was run.
Club Galaxy

• Club Galaxy formed w.e.f 2015-16.


• Qualifying Condition :- For M.Y. 2018-19
• Financial year 2015-16 :- For New Entry
• F.Y.C. 8 lakh (Without Bonus) OR
• F.Y.P. 33 lakh ( In case of Single Premium 6% credit for F.Y. Premium)
(For Continue – 10 lacs FYC/40 lacs FYP)
• Financial year 2016-17 :-
• F.Y.C. 10 lakh (Without Bonus) OR
• F.Y.P. 40 lakh ( In case of Single Premium 6% credit for F.Y.Premium)
• First Year lapsation not to exceed 10%.
Fringe Benefits to Club Member Agents

Benefits Category of Club Member

CM’s Club ZM’s Club DM’s Club BM’s Club

Basic Office Allowance + Rs. 1000/-


Rs. 35000/- + Rs. Rs. 22000/-+ Rs. Rs. 12000/-+ Rs.
For maintaining personal (Stationery
10000/- 5000/- 3000/-
Computer Allowance)

Addl. Office Allowance for


lapsation 0% to 10% (Max Maximum Rs. Maximum Rs. Maximum Rs. Maximum Rs.
30% of Basic Office 10500/- 6600/- 3600/- 300/-
Allowance)

Total office Allowance Rs. 55500/- Rs. 28600/- Rs. 15600/- Rs. 1300/-
Fringe Benefits to Club Member Agents

• Basic Office Allowance depends on 50% of actual expenses or 7.5% of


total Commission (FY+R) paid in the preceding Financial Year OR Max.
amount whichever is the least.
• The office allowance should be claimed by the member during the M.
Y. but not later than 6 months after the expiry of M.Y.
• If both husband & wife are same Club members – office allowance to
only one. Different Club members – Office allowance to Higher club.
(Diff office + Premium Point – both are eligible)
• If 2 club members have joint office then 75% of office allowance is
payable.
• If 3 or more club members maintain joint office then 60% of office
allowance is payable.
Fringe Benefits to Club Member Agents
• Additional Office Allowance is calculated on the basis of the average of the lapsation
percentages of the last 3 financial year preceding the qualifying year. The lapsation has to
be less than or equal to 10% in each of the last three years.
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
Lapsation higher than 15%

For existing Club Agents:


• No Disincentive lapsation > 15% in one year.
• For 2 years > 15%, ineligible for Convention, Office Allowance.
• For 3 years > 15%, dropout from membership of Club.
• If lapsation greater than 15% even for one year, then agent will be kept under
watch and no fresh advance for fast conveyance or housing loan will be given
till lapse ratio > 15%.
For aspiring agents:
• If lapsation > 15% for any F.Y., then year will not be considered for eligibility.
Agent will have to qualify for one more year.
• If lapsation > 15% for 2 years, then he has to start fresh.
Graded Office allowance to CM Club Members

INCREASED MAXIMUM LIMIT

PERFORMANCE SLAB Office Allowance reimbursement Telephone Reimbursement (Incl. of Sales Promotional gift items
(Incl.of Basic and additional telephone Reimbursement as (Incl. of amount as
office allowance) mentioned earlier) mentioned earlier)

No.of lives in force -750 and R.C. paid Rs.500000/


- OR Tot.Comm. paid Rs.750000/- in Q.F.Y. Rs.40000/- 7000/-- 4000/-

No.of lives in force -1000 and R.C. paid


Rs.600000/- OR Tot.Comm. paid Rs.45000/- Rs.8000/- Rs.5000/-
Rs.1000000/- in Q.F.Y.

No.of lives in force -1250 and R.C. paid


Rs.750000/- OR Tot.Comm. paid Rs.50000/- Rs.9000/- Rs.6250/-
Rs.1250000/- in Q.F.Y.
Graded Office allowance to CM Club Members

INCREASED MAXIMUM LIMIT

PERFORMANCE SLAB Office Allowance Telephone Reimbursement (Incl.


Sales Promotional gift items
reimbursement (Incl.of of telephone
(Incl. of amount as
Basic and additional Reimbursement as
mentioned earlier)
office allowance) mentioned earlier)

No.of lives in force -1500 and R.C. paid


Rs.900000/- OR Tot.Comm. paid Rs.60000/- Rs.10000/- Rs.7500/-
Rs.1500000/- in Q.F.Y.

No.of lives in force -1750 and R.C. paid


Rs.1050000/- OR Tot.Comm. paid Rs.70000/- Rs.11000/- Rs.8750/-
Rs.1750000/- in Q.F.Y.

No.of lives in force -2000 and R.C. paid


Rs.1200000/- OR Tot.Comm. paid Rs.85000/- Rs.12000/- Rs.10000/-
Rs.2000000/- in Q.F.Y.
Office Allowance
• For Potential CM’s Club Members:
• An agent who satisfies the conditions in any F.Y.
– Rs. 12000/- or Office Allowance payable
whichever is higher.
• An agent who satisfies the conditions in
consecutive 2 F.Y. - Rs. 20000/- or Office
Allowance whichever is higher.
Telephone Reimbursement

Corporate Club Member 10000/- landline and mobile

Chairman’s Club Member 6000/- landline and or mobile

Zonal Manager’s Club Member 4000/- landline and or mobile

Divisional Manager’s Club Member 2400/- mobile rental and call charges

Branch Manager’s Club Member 1800/- mobile rental and call charges

Reimbursement every quarter. If not claimed, the claim has to be


submitted within 6 months from the expiry of club M.Y.
Reimbursement towards Sales Promotional Gift
Items

Chairman’ Club Rs. 3000/-

Zonal Manager’s Club Rs. 2000/-

Divisional Manager’s Club Rs. 1000/-

Branch Manager’s Club Rs. 500/-


Group Mediclaim for Club Member Agents

Club Membership EXISTING COVERAGE Cover of Mediclaim (Upto


age 85) (Family floater)
(RS)

Corporate Club 1,25,000 Rs. 500000/-


Galaxy Club Rs. 400000/-
 1,25,000
Chairman’s Club
Rs. 300000/-
Zonal Manager’s Club 75,000 Rs. 200000/-
Divisional Manager’s Club 55,000 Rs. 150000/-
Branch Manager’s Club 40,000 Rs. 100000/-
Club Member Agents Who want or do not want to cover the spouse under this Group Medi Claim Scheme have to
give the consent for the same
Only Corporate Club Agent need not to pay medi-claim premium. If agent want to cover the spouse then only spouse
premium will be deducted from the Commission.
GROUP INSURANCE SCHEME

Club Membership Cover (Rs) Yearly Renewal Prem.(Rs)

  Existing Revised  

Corporate Club 5,20,000 8,00,000 2100

Club Galaxy 0 6,00,000 1600

Chairman Club 2,80,000 4,00,000 1100

Zonal Manager Club 1,40,000 2,00,000 560

Divisional Manager Club 70,000 1,10,000 300

Branch Manager Club 40,000 55,000 150


FESTIVAL ADVANCE

TYPE OF AGENTS EXISTING (RS) REVISED (RS)

Corporate Club Members 20000 30000

Club Galaxy Members 15000 22000

CM's/ZM's/DM's Club Members 15000 20000

BM's Club Members 12000 15000

Other Agents who have completed 5 agency years 8000 10000

Agents who have not completed 5 agency years but have


completed atleast 2 agency years 5000 7000
Gist of Club Benefits
Particulars Corp Galaxy CM ZM DM BM
Office Allowance 125000 100000 35000 22000 12000 0

Addl Office Allowance 0 12000 upto 30% upto 30% upto 30% 0

Telephone Call Re-imbursement 15000 12000 6000 4000 2400 1800


(Ann)
Sales Prom Gift Items 0 0 3000 2000 1000 600
Festival Advance 30000 0 20000 20000 20000 15000
Housing Loan on @ 5% 850000 0 850000 745000 645000 0
Housing Loan on @ 7.5% 950000   950000 855000 755000  
Interest free 4 Wheeler Advance 2000000 1000000 600000 500000 500000* 2 Wheel
Gist of Club Benefits

Particulars Corp Galaxy CM ZM DM BM


Interest free 2 Wheeler Full Pur Pr  Full Pur Pr Full Pur Pr Full pur Pr Full Pur Pr OR
Advance OR 75% of 2 75% of 2 yr RC
yr RC

Group Insurance 800000 600000 400000 200000 110000 55000


Grp Ins Prem (Cir) 2100 1600 1100 560 300 150
Mediclaim 500000 400000 300000 200000 150000 100000
Convention 0 60000 All India Zonal Level Divisional 0
Level Level
Out of Pocket Exp for   20000  3000 2500 400 200
Attend Convention

Air/Train Fare   Air Fate  Air Fare II AC I Class I Class


Club Blazer 6000 5000 0 0 0 0
Letterheads & Envl.     1000 750 500 300
Visiting Cards     250 200 150 100
Functional Privileges to DM and above Club Member Agents

• Attest the signatures and thumb impressions of policyholders and claimants or identify
policyholders.
• To receive loan/ claim cheques on behalf of their policyholders/ clients on production
of required authority letter from the claimant.
• CM’s and ZM’s Club Members 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.
• MHR limits have been specified for Club Member agents.
• BM/Distinguished Club – 10 lacs;
• DM Club – 20 lacs;
• ZM Club – 30 lacs;
• CM Club – 50 lacs;
• Corporate Club – 1 crore.
THANK
YOU