2 Club Membership Rules Revised in October 2009 & Modified in April 2010 [Covers Distinguished Club]
3 What is Club Membership? Recognition for meritorious agentsPerformance rewardFinancial & Non-Financial motivatorInducement for higher performance
4 What are the Clubs? Chairman’s Club Zonal Manager’s Club Divisional Manager’s ClubBranch Manager’s ClubDistinguished Agents Club
5 New Club Rules Condition ‘A’ & ‘B’ merged together Every Club Member should compulsorily introduce New Business every yearIn addition to it, they can qualify either by doing higher New Business or having more inforce policies.
6 Club Membership Eligibility Criteria Sr.Name of ClubCM’s ClubZM’s ClubDM’s ClubBM’s Club1.Minimum Net No. of Lives403020152.a. Net No. of LivesORb. No. of Lives In-force13010080506004002501503.Renewal CommissionPaid (Rs.)2,00,0001,40,00090,00050,0004.First Year Commission60,00035,000
7 No. of years for which Criteria will have to be fulfilled Qualifying Year and2 out of 3 Financial Years preceding the Qualifying yearFor both Entry and Continuation
8 Condition No.1 Minimum Net Number of Lives to be fulfilled In the Qualifying Year andIn each of the years reckonedFor Entry/Continuation of club membership.This is a mandatory condition
9 Condition No. 2 Net Number of Lives/ Number of Lives in force An agent can bring in either1. Net number of livesor2. should have the requisite number of lives in forcein the years reckoned for his entry/Continuation of his/her club membershipHe/she has to fulfill either condition 2a or 2b.
10 Relaxation ClauseShortfall in fulfillment of First Year Commission (paid) conditionCondonation maximum up to 50%,To be compensated with same or higher percentage increaseon the basic condition prescribed for Renewal Commission paid
11 Relaxation ClauseShortfall in fulfillment of Renewal Commission paid conditionCondonation up to a maximum of 100%To be compensated with same or higher percentage increaseon the basic condition prescribed for First Year Commission paid.
12 DA Club Membership First Step in Club Membership Any Agent who has completed 1-year service will be eligibleMinimum Net Lives : 40Minimum First Yr Comm: Rs.50,000/-Previous yr Lapsation < 15%
13 CLUB MEMBERSHIP BENEFITS Various benefits are given to Club Member Agents in LIC. Let us see one-by-one in DETAIL.
14 Office/Stationery allowance* CM Club Member Rs.35,000 paZM Club Member Rs.22,000 paDM Club Member Rs. 12,000 paBM Club Member Rs. 1,000 pa* (7.5% of Renewal Commission + First Year Commission)
15 Policy Lapsation Ratio Attract Incentives and Disincentives in Office Allowance Lapse RatioAdd Off All10 or less5%9 or less8%8 or less10%7 or less12%6 or less15%5 or less18%4 or less20%3 or less22%2 or less25%1 or less28%ZERO30%-Lapse Ratio over 15 for ExistingFor 1 YearsNo disincentive (Under Watch)For 2 YearsNo Benefit (Office Allowance & Convention)For 3 YearsClub Membership CeasesNew Aspirants will NOT be considered.15
16 Office AllowanceThe potential Chairman’s Club qualifiers would be paid Office Allowance as follows:For any such financial year in which he satisfies CM’s Club entry conditions an office allowance of INR or Office Allowance otherwise payable to him whichever is higher.If an agent satisfies the conditions in the next financial year also, amount would be INROffice allowance, as above, should be claimed by the member during the Club Membership Year but not later than six months after the expiry of Club Membership year.16
17 Gift items CM Club Member - Rs.3,000 pa ZM Club Member - Rs.2,000 pa DM Club Member Rs.1,000 paBM Club Member Rs pa
18 Festival Advance* CM Club Member - Rs.15,000 pa ZM Club Member Rs.15,000 paDM Club Member Rs.15,000 paBM Club Member Rs.12,000 pa*interest-free recovery in 10 instalments
19 Letter heads with envelopes CM Club Member Nos.ZM Club Member Nos.DM Club Member Nos.BM Club Member Nos.
20 Visiting Cards CM Club Member - 250 Nos. ZM Club Member - 200 Nos. DM Club Member Nos.BM Club Member Nos.
21 Attestation of Age Proof CM Club Member YesZM Club Member YesDM Club Member NoBM Club Member No
22 MHR Limits CM Club Member - 50 Lakhs ZM Club Member - 30 Lakhs DM Club Member LakhsBM Club Member Lakhs
23 Receiving Cheques* CM Club Member - Yes ZM Club Member - Yes DM Club Member YesBM Club Member No*Authorisation letter from policyholder is required
24 Interest free Vehicle advance CM Club Member Car/ScooterZM Club Member Car/ScooterDM Club Member ScooterBM Club Member Scooter
25 Additional office allowance CM Club Member Rs.6000 paZM Club Member NilDM Club Member NilBM Club Member Nil*for maintaining personal computer
26 Telephone Facility CM Club Member - Rs.6000 pa ZM Club Member Rs.4000 paDM Club Member Rs.2400 paBM Club Member Rs.1800 pa
27 Group Mediclaim CM Club Member : Rs.1,25,000 ZM Club Member : Rs. 75,000DM Club Member : Rs. 55,000BM Club Member : Rs. 40,000
28 Group Insurance (Club Members) CM CLUB : Rs.2,80,000ZM CLUB : Rs.1,40,000DM CLUB : Rs. 70,000BM CLUB : Rs. 40,000
29 Benefits to ALL AGENTSWe shall see in detail, what are all the benefits available to ALL AGENTS!
30 CAR LOAN & QUANTUM*CM Club Max of 6 Lakhs (or) last years Renewal commissionZM Club Max of 5 Lakhs (or) 75% of last 2 years Renewal commissionDM/BM Club Only 2-Wheeler Advance*Interest-free for CM/ZM & 9% for other Agents – Repayment in 96 months
31 2-Wheeler advance & quantum Same as Car LoanInterest-free to Club Members9% to other Agents60 Months recovery from commission
32 Office Equipment All Club Members are eligible Advance upto last year’s Ren CommnInterest-free to Club Members9% interest to other Agents36-months recoveryCan be availed 5 times in LIFE.
33 Medical Treatment of self/family Available to Club Members/ERC onlyIn case of SERIOUS illness, advance equal to last year’s RENEWAL.Hospital Bills etc to be produced9% interest & 36 months duration
34 Marriage of self/family Available to Club Members/ERC onlyAdvance equal to last year’s RENEWAL.Proof of marriage etc. to be given9% pa for 36 months
35 Religious ceremonies Club Members/ERC Agents only Last year’s RENEWAL or Rs.25,000 whichever is minimum9% interest for 36 monthsCan be availed 3 times in LIFE.
36 Repairs to Car/Bike Quotations from Garage Upto Rs.20,000 for Car Upto Rs.10,000 for 2-Wheeler9% recoverable by 36 instalments
37 Flood/Drought Advance Club Member Agents/ ERC AgentsInterest-freeRecoverable as per notification
38 Festival Advance For Agents > 5 yrs : Rs.8,000/- Agents 2 to 5 yrs : Rs.5,000/-* Recoverable in 10 instalments
39 Training Advance Maximum amount of Rs.7,500/- Interest-free repayment in 10 monthsAny Agent who has completed 5 years of Service is eligible
40 Gratuity to Agents Every Agent is eligible for Gratuity Completed 15 years serviceShould have attained 60 yearsGratuity is eligible for any Agent who has left the service of LIC provided 15 years service is completedMaximum eligible – Rs.2,00,000
41 Group Insurance For all Agents with min 1-yr service With effect fromAgents up to Age: 65 coveredA very nominal premium is recovered from Commission during SeptA Boon to all AGENTS of LIC
42 Group Insurance Details ServiceRisk CoverAnnual premium1 to 3 years50,000Rs.1203 to 5 years1,00,000Rs.2405 to 10 years3,00,000Rs.720Above 10 yrs5,00,000Rs.1200
43 How an agent can become a club member ? The Agent to follow a simple formula for 3 years only .To Qualify for the Membership of:BM Club - Just 4/5 Lives every month (1 Life/Week)DM Club - Just 7/8 Lives every month (2 Lives/Week)ZM Club - Just 8/9 Lives every month (1 Life/3 Days)CM Club - Just 11/12 Lives every month (1 Life/2 Days)MDRT - Rs FPI Every MonthCORPORATE CLUB – DOUBLE MDRTPlanning & Execution Bring SuccessPlan Your Goal Yourself.FOLLOW YOUR DREAMS43