LIC changed agency MBG criteria for agents

MBG criteria for LIC agents

Ahead of its Diamond Jubilee year Life Insurance Corporation of India has given a good gift to its agents by changing various norm related to MBG criteria and eligibility norms related to recruitment of agent. This step will be beneficial for both agents as well as Development Officer of LIC. Earlier the MBG criteria for the LIC agents was 12 lives and . 100000/- FYPI  in an agency year.

It will not only help the LIC to retain more agents but also help its Development Officers to recruit more agents as the overall eligibility criteria of minimum qualification of agent reduced to 10th compared to 12th in urban areas and 10th in rural areas. Other than the changes made by LIC, all the other conditions will be governed by the LIC Agents Rules (1972)

Here are the key changes which were approved by the LIC board related to agency matter:

Agency Performance Review policy (MBG Criteria):

  1. The Minimum Business Guarantee norms (MBG Criteria) to be achieved by agents during the agency year :
    An agent has to procure –
    EITHER 6 lives AND .50,000/- FYPI
    OR  12 lives
    OR . 1 Lac FYPI.                                                                                                                                                           Notwithstanding the above, an agent shall be exempt from bringing in the business
    required of him, if he has continually worked for the Corporation as an agent for a
    period of:

    • not less than 21 years ; or
    • at least fifteen years and he is at least 55 years of age; or
    • fifteen years and at any time subsequent thereto there is a business in force in the books of the Corporation under his agency yielding a renewal premium income of not less than Rs. 2,00,000 per annum.
  2. The criteria for termination of agency for failure to achieve the Minimum Business Guarantee:
    If an agent fails to bring in the business required of him as specified in 4(a) above in
    an agency year, his appointment shall stand terminated at the end of such agency year
    under the provisions of Agents Rules, 1972.
  3. The criteria for re-appointment / reinstatement of agents terminated for failure to achieve the Minimum Business Guarantee: As per Agents Rules, 1972 and amended from time to time
MBG Criteria for LIC agents-2

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Eligibility conditions for Appointment of Insurance Agents:

  1. Eligible Age:

    An applicant must be at least 18 years of age on the date of the application.

  2. Eligible Educational Qualifications:

    Passed minimum Class X (matriculation examination), or equivalent examination from
    a recognized Board or Institution.

  3. Interview Procedure :

    Branch Manager to interview all applicants.

Pre-Recruitment training on Insurance to Applicants:

Pre-recruitment Insurance Training (online or offline) to equip the prospective agents
with the insurance, knowledge to appear for insurance agency examination –

  • for life insurance agent –

    25 hours of classroom training; and 25 hours of practical training in accordance with the syllabus prescribed by the authority in life [in Branch Office – the respective Development Officer to impart training and certificate of successful practical training to be issued either by Development Officer or ABM(S)]or BM (S) ; 25 hours of classroom training at the time of renewal of agency (as appointment will have to be renewed after every 3 years);

  • for a composite agent with respect to the Life aspect –

    25 hours of classroom training; and 25 hours of practical training in accordance with the syllabus prescribed by the authority in life As regards Non-Life part, training needs will depend upon the respective Insurers. The Training will be valid for a period of 6 months.

Skill Development Training:

Agents shall be exposed to various training for the purpose of Skill Development including those conducted by National Skill Development Council (NSDC), Government of India, BFSI SSC Financial Sector Skill Council in a phased manner.

Other than MBG criteria and  above-mentioned points all other conditions related to LIC agents are according to LIC agents rule 1972 and other circular related to agency conditions and benefits issued later on by LIC. To know more about other changes approved by Board of LIC click the link provided next Board Approved Policy on Agency Matters

23 Comments on "LIC changed agency MBG criteria for agents"

  1. I am running an LIC policy since Sep 2010. I have been a member of the MDRT club and club membership as well. Till date I have done more than 620 Policies in the first 5 years.the last year which was my 6th policy yr was a bit difficult phase in business and hence i could do only 6 policies till date with 115,000 premium. will i be able to continue with my agency? what are the MBG norms as per the different years?

    • Before new LIC board approved policy regarding agency matters MBG criteria was 12 Lives and 1 Lakh FYPI. If the new MBG rules are also applicable for existing agents (Please seek clarification from your branch) then you will not have to worry about it.

  2. thank u sir, i have clarified at branch.concern staff/ d.o no idea(i think they telling lies) regarding circular. i am agent still 1994 august31. last year i have enteed to dm club.still no financial year nearly 16 lives and pre is arounf j,arulmozhi.

  3. Sir, my agency ending this month. I paid more than one lac fyfp.but lac of few number of policy. Is it this circular effective from this month??? Plz reply

  4. thank u sir. i have clarified at branch ,concern staff/ d.o .saying dont belive romurs. regarding circular u mentioned.but top afficials saying it is kept in lic noard. still now not approved. field officers fedaration opposing it. so wait and c. which 1 is cooreect. pl clarify my dought.

  5. sir my licence renewal date on 26 august 2016 but this year i did 15 nop and 60000/ fypi, My licence is eligible not terminate

  6. plz clearify

    EITHER 6 lives AND `.50,000/- FYPI
    OR 12 lives

  7. I have been working since 1992 regularly but I am not be club member reglarly.Pls advice me.

    • Agents working for a long time and but they still not a member of any club then they must arrest the first year lapsation. Check your lapsation for last few years, it should not be more than 15% in any case. If lapse ratio is more than 15% in any particular year, then that year is not counted for club membership purpose and you have to start fresh.

  8.' Anand Rambhajani | August 31, 2016 at 9:14 am | Reply

    My Agency year complete on Aug-16
    I have completed 12 policy but premium only 75000 should I get extension
    I last year I have completed 12 policy premium 90000

  9. sir pl publish revised age proof conditions.

  10. I believe this revision of MBG rule is handy for the dummy agents, particularly Lic employees having dummy agencies.However this new MBG rules will gradually decrease the business and as well as the income o non club Agents.

  11. My agency Month is sep 2016 pls let us know New MBG 6 lives AND `.50,000/- FYPI for agent applicable on our agency My agency is renew on this condition

  12.' C. Sathyanarayana Rao | September 26, 2016 at 12:26 pm | Reply

    My wife working as lic agent since 1999 during the every agency year ending completed the minimum guarantee business.Now this year completeed 8policies with 125000/-first year premium. Now my eligibil from next agency year?

  13.' Rajesh kumar sinha | September 29, 2016 at 9:01 am | Reply

    Sir my licence renewal date on sep 2016 but this year l did 8 nop and 150000 fypi my licence is eligible not terminate.

  14.' Awatade subhash Ramchandra | October 20, 2016 at 4:56 pm | Reply

    Sir my Licence renewal date 14/10/2016 but this year 12 pol and 950000 Fypi my licence is eligible not terminate.

  15. Sir,what is the condition to eligible for bonus commission

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