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

Diferment of escalation clause for LIC of India’s Club Member agents

Diferment of escalation clause for LIC of India’s Club Member agents

LIC, LIC Agents, Life Insurance

In my earlier post “Conditions for Club membership for FY 2015-16 for LIC agents” I mentioned about the escalation clause and commission required to qualify for the particular club for the financial year 2015-16 for new as well as continuing club members. The escalation clause is a yearly increase in commission by 5% compared to last year, and it was effective from 2013-14 for new entrants and 2014-15 for continuing club members. But as per the new circular of LIC Mkt/A/21(R) dated 01/07/2015  dated 06/06/2016 escalation clause has been reviewed. Continue reading “Diferment of escalation clause for LIC of India’s Club Member agents”

Conditions for Club membership for FY 2015-16 for LIC agents

Conditions for Club membership for FY 2015-16 for LIC agents

LIC, Life Insurance

With the change in the financial year the conditions for Club Membership for LIC agents also changed due to the escalation clause, that is 5% increase in First Year commission paid and Renewal commission paid every year. Qualifying conditions for various clubs in the financial year 2015-16 and Membership year 2016-17 are as follows:

Also Read: Deferment of escalation clause for LIC of India’s Club Member agents


Qualifying conditions for Club Membership for Financial year 2015-16 (Continuation

S. No.Name of ClubCM’s ClubZM’s ClubDM’s ClubBM’s Club
1Minimum Net No. of Lives40302015
2a. Net No. of Lives          OR1301008050
b. Total Lives In-Force600400250150
3Renewal Commission Paid (Rs.)2000001400009000050000
4First-year commission Paid (Rs.)2000001400006000035000

There is a difference between the entry criteria for agents who are already club members ie for continuation due to relaxation is given to them from escalation clause for the year 2013-14. Agents who are trying to become club members in coming year will have to earn 5% extra commission compared to agents who are already club members.

Qualifying conditions for Club Membership for Financial year 2015-16 (New Entry

S. No.Name of ClubCM’s ClubZM’s ClubDM’s ClubBM’s Club
1Minimum Net No. of Lives40302015
2a. Net No. of Lives          OR1301008050
b. Total Lives In-Force600400250150
3Renewal Commission Paid (Rs.)2100001470009500053000
4First-year commission Paid (Rs.)2100001470006300041000