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 ‚ÄėScheme of Advances to the agents‚Äô. 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.

 

Terminology that every LIC club member agent must know

Terminology that every LIC club member agent must know

LIC, Life Insurance

LIC of India has more than 12 lac agent, and according to their performance LIC rewards them in the different form. One is Club membership. According to the business procured by agents in last 4 year LIC awards club membership to agents. These Clubs are Corporate Club, Galaxy Club, Chairman Club, Zonal Manager Club, Divisional Manager Club, Branch Manager Club and Distinguish Club. LIC has made the criteria for the entry to new club or continuation in a new club. These criteria mainly depend upon a number of lives procured by an agent in the financial year, total in force lives, renewal commission, and first-year commission. But other than this, there are many other factors which an  LIC club member agent should know to continue or enter in a new club, which we are going to discuss here one by one, all the points covered here to be done in a financial year.

Number of Policies” in a financial year:

This is, all the policies procured by an agent in a financial year (1st April to 31 March). This will also include policies done on the same life by the agent in the same financial year.

Number of lives” by LIC club member agent in a financial year:

The number of lives is a very crucial factor for getting a club membership. The number of lives means, the number of the different people insured by an agent in a financial year. An agent may do 2 or more policies of a single person. When an agent does 100 policies it does not mean he has done insurance of 100 different people. There is no exact correlation between Number of Policies and Number of Lives, an agent can do insurance of 2 or more individuals in 1 policies also. But, more the number of lives, more the policies.

“Total Inforce Lives”¬†by LIC club member agent

This is nothing but all the policies procured by an agent from the first day of his agency, which is still running (in force condition as on ¬†31 March of the current financial year). Only those policies will be considered as in force where ¬†FUP is less than 6 months. Policies under auto cover are not included in “total in force lives” where FUP is >6 Month.

Policies which are in auto cover (like New Bima Gold, New Janraksha, and Jeevan Saral) but FUP >6 months are considered as lapse and not included in “Total in force lives” of the agent. In differed annuity policies where policy is vested and premium payment, the term is over are also excluded from¬†“Total in force lives”.¬†

“Net Number of Lives” by LIC club member agent in a financial year

This is the first condition for LIC club member agent, which he has to complete to continue or enter a new club. for CM club, it is 40 Net lives and 30, 20 and 15 for ZM, DM, and BM club respectively. The net number of lives arrives after reducing duplicate lives, first-year lapse policy from the total number of lives introduced by an agent in a financial year.

Here yearly policy complete in last financial year having FUP >6 months will also be taken as first-year lapse policy. I am quoting the lines of LIC circular Mktg./A/ZD/29/2009 Date: 22nd October 2009 for club member conditions here for reference.

‚ÄúNet Number of Lives‚ÄĚ are distinct lives insured ( not number of¬†policies) during the qualifying financial year reduced by the number of¬†lives who had been insured in the financial year preceding the¬†qualifying financial year whose policies are lapsed as on 31st March¬†of the said qualifying financial year.

“First year Commission” by¬†LIC club member agent in a financial year

This is the commission paid to an agent for the first year of the policy. The first-year commission includes first commission paid on yearly policy, commission paid on first two installments of half-yearly policy and commission paid on first 4 and 12 premiums in quarterly and monthly mode policy respectively. Bonus commission paid to an agent on the first-year commission is also included here for club membership purpose.

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Relaxations in club membership conditions for LIC agents

Relaxations in club membership conditions for LIC agents

LIC Agents, Life Insurance

Life Insurance Corporation of India (LIC) has more than 12 lac agents. To motivate the agents, LIC have made different club according to the business procured by agents and club membership rules. These clubs mainly are, Distinguish Club, Branch Managers’ Club (BM Club), Divisional Managers’ Club (DM Club), Zonal Managers’ Club (ZM Club), Chiarmans’ Club (CM Club), Newly introduced Galaxy club and Corporate Club.

As per the business procured by the agents and club membership conditions, agent gets the club membership for one year from 1st of September to 31st August, and can continue or become member of higher club by continuing or qualifying conditions of higher club.

LIC has also provided some relaxation in these conditions so as to bring new and more agents in these clubs

Relaxation conditions to qualify or continue the club membership in a club

  1. An agent will have to fulfill condition with regard to Renewal Commission and First Year Renewal Commission. However, a shortfall in fulfillment of First Year Commission (paid) condition may be accepted maximum up to 50%, in years to be required for Club Membership, provided it is compensated with the same or higher percentage increase on the basic condition prescribed for Renewal Commission paid
  2. A shortfall in fulfillment of Renewal Commission paid condition may be accepted up to a maximum of 100% in years to be required for Club Membership provided it is compensated with the same or higher percentage increase on the basic condition prescribed for First Year Commission paid. This means a newly appointed LIC agent can aspire to be member of any club from day 1.
  3. If first year lapsation of a continuing club member go above 15%, but other qualifying conditions are fulfilled, then he may be continued in the club but, he will be kept under watch and no fresh advances will be paid. But if a FP lapsation is greater than 15% in a qualifying year for a aspiring club member then that year will not be considered for club membership purpose.
  4. An agent who is club member for a certain club will continue to be in club if he fails to bring minimum net number of lives, if he has completed 5 years in same club then relaxation of 1 year and if club member of certain club for 10 years then relaxation of 2 years. Note: This relaxation is for only minimum net number of lives, agent have to qualify in other conditions.
  5. An agent who has completed the age of 60 years as on the date of commencement of club membership year and had been 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.

These relaxations are given by LIC to motivate agent, even if agents is not able to do required amount of business (according to above mentioned conditions) due to some unforeseen conditions with him/her.