LIC changed agency MBG criteria for agents

LIC changed agency MBG criteria for agents

LIC Agents, Life Insurance

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
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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

Club Galaxy for LIC agents: All you need to know

Club Galaxy for LIC agents: All you need to know

LIC, LIC Agents, Life Insurance

Club membership for agents is one of the ways Life Insurance Corporation of India rewards its agent for higher and consistent performance. Until May 2014 the highest club was the corporate club and after that Chairman Club was there. There is a huge difference between the eligibility criteria of the corporate club and Chairman Club. In May 2014, LIC of India introduced a new club between the corporate club and Chairman Club named, Club Galaxy.  One of the reasons behind the introduction of Club Galaxy was to motivate the agent to qualify for MDRT (Million Dollar Round Table) and therefore eligibility criteria of Club Galaxy are synced with qualifying conditions of MDRT.  Let me share some important point and conditions of Club Galaxy here:

Membership Year for Club Galaxy

The year in which agent become a member of the club is known as Membership year. For Club Galaxy, membership year is 1st September to 31st August like other clubs. The financial year after which an agent becomes the member of a particular club is known as the qualifying year. Therefore, the first qualifying year was 1st April 2014 to 31st March 2015 and first membership year for Club Galaxy is 1st September 2015 to 31st August 2016.

Eligibility criteria for Club Galaxy Membership year September 2017 to August 2018

Eligibility condition Club Galaxy

Benefits of Club Galaxy for agents

Fringe benefits of the Galaxy Club are not linked with any other club for agents; following fringe benefits will be given to the member of Club Galaxy

  1. Office Allowance: 50% of the actual expenses for maintaining the office or Rs. 100000 whichever is lower will be reimbursed to the agent at the end of the membership year.
  2. Telephone Facility: Maximum reimbursement of Rs. 12000 per annum for rental and call charges of Landline/Mobile phone.
  3. Supply of letter heads envelops and visiting card: Letter head and envelops-500 Nos each per annum and Visiting card-500 Nos per annum.
  4. Club Convention: Members of the Galaxy Club will be allowed to attend the convention at the place decided by the LIC of India or reimbursement of actual airfare or Rs. 60000 whichever is lower for attending MDRT meet. Club agent will also be eligible for out of pocket allowance of Rs. 10000 for attending the MDRT meet. Club Galaxy members will also be eligible for the reimbursement of MDRT registration fee.
  5. Club Blazer: Rs. 5000 for club blazer as per the color and pattern decided by LIC. Earlier club blazer was only provided to corporate club members only.
  6. Other benefits: Daily allowance, group insurance, Medi claim and complimentary diaries will be same as it for Chairman Club member agents.

Advances to Club Galaxy agents

Agents who are qualified and continuing in the Galaxy Club will be eligible for various advances against renewal commission as per the ‘Scheme of Advances to the agents’. Conditions and quantum of the advances are same as per the conditions for Chairman Club member agents except Four wheeler advance which is: Actual prize of the car OR Last two years renewal commission OR Rs. 10 Lakh, whichever is less.