Club Rules 36456s

LIC OF INDIA::CENTRAL OFFICE

Compendium of various Rules and Instructions issued from time to time in respect of

Club hip Rules and Benefits (updated upto 15.07.2005)

(For departmental reference only)

Prepared by:

Marketing/Field Personnel Desk

Index Sl.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Topic Introduction Qualifying Conditions for hip of Agents Clubs(C.M,Z.M,D.M and B.M) Application for hip into Agents Club Annexure I Application for claiming credit for revival of policies Annexure II Lapsation Clause Distinguished Agents Clubs Life hip of Clubs, Honorary hip Mementos to Club Member Agents Group Insurance Scheme for Club Member Agents Functional Privileges to Club Member Agents Interviews for Club hip Corporate Identity Programme and printing of stationery for club member agents Sales promotional Gift Items,Guest House facility Complimentary copies of Diaries/Calendars Office Allowance/Addl.Office allowance,Annexure Telephone Facility Income Tax on Office Allowance and Fringe Benefits, Issue of Club hip Certificates/Badges Authorities for ission/Termination of Agents Clubs Group Mediclaim Scheme for Club Member Agents Invitation for Annual Convention Travelling Expenses to Agents Daily Allowance to Agents Credit for different plans of assurance for Clubhip Corporate Club Application for hip into Corporate Club Annexure III

Page Nos. 3 4-13 14-15 16 17-19 20 21-22 23 24 25 26-27 28-29 30-31 32-36 37-38 39 40 41-44 45 46 47-48 49-50 51-58 59-60

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Club hip -- Rules and Benefits Introduction: Agents are the backbone of LIC of India. The agents have therefore to be nurtured and cultivated to grow up in the profession, acquiring sufficient knowledge, skills and competence to discharge their duties effectively towards policyholders and clients. To inculcate professionalism in agents, to motivate them for higher production and consistency of business, to encourage them to render service to policyholders and to accord them a higher status in the organisation and society, the institution of Clubs at 4 levels viz., Branch Manager’s Club, Divisional Manager’s Club, Zonal Manager’s Club and Chairman’s Club was brought into existence with effect from 1.4.1971. This may be hailed as the landmark in raising the status of the profession of insurance salesman in this country. In order to promote professionalism amongst a larger number of agents and to enhance insurance coverage at a faster pace, Distinguished Agents’ Clubs at Branch Level have been formed w.e.f. 1.4.1999. A Agents Club called the “CORPORATE CLUB” has been formed w.e.f. M.Y. 2004-05 to motivate and recognize high performers.

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Qualifying conditions and other Criteria prescribed for hip of Agents Clubs

(Chairman’s, Zonal Manager’s, Divisional Manager’s and Branch Manager’s)

The qualifying criteria for entry as well as continuation of hip of different clubs under both the Conditions ‘A’ and ‘B’ effective from the qualifying financial year 1.4.2001 to 31.3.2002 and in consequence thereof club hip eligibility for the hip Year 2002-2003 onwards, are as mentioned below: CRITERIA FOR HIP OF Entry/continuation condition

*

Chairman’s

Zonal

Divisional

Branch

Club

Manager’s

Manager’s

Manager’s

Club

Club

Club

100

60

40

15

170

115

90

45

paid (Rs.)

1,10,000

80,000

55,000

30,000

F.Y. Commission Paid

1,00,000

70,000

35,000

20,000

No. of Lives in force

550

370

230

120

(Rs. In lacs)

85

55

35

12

Net No. of Lives

120

100

70

35

paid (Rs.)

1,10,000

80,000

55,000

30,000

F.Y. Commission Paid

1,00,000

70,000

35,000

20,000

No. of Lives in force

550

370

230

120

Entry under Condition ‘A’ Net Sum Assured (Rs. In lacs) Net No. of Lives

** Entry under Condition ‘B’ Renewal Commission

@ Continuation under Condition ‘A’ Net Sum Assured

@ Continuation under Condition ‘B’ Renewal Commission

Entry and continuation conditions will have to be fulfilled for the number of years as specified below: 1.

*Entry under Condition ‘A’

:

The criteria is to be fulfilled in the

Qualifying Year and 3 out of 4 Financial Years preceding the Qualifying Year.

2.

** Entry under Condition ‘B’ : The criteria is to be fulfilled in the Qualifying Year and 2 Financial Years preceding the Qualifying Year (i.e. same as 3 Financial Years immediately preceding hip Year as at present).

3.

@ Continuation under Condition ‘A’ or ‘B’ : The respective criteria is to be fulfilled in 3 out of 4 Financial Years preceding the hip Year.

2.

Transitional arrangements: Agents who are already of different clubs during the hip year 2001-2002 and those who are not of any club but have fulfilled the criteria for club hip for one or more relevant years for entry either under Conditions ‘A’ or ‘B’ prior to Financial Year 2001-2002 according to the rules prevailing immediately prior to this revision, will be allowed transitional arrangements for two financial years 2001-2002 and 2002-2003.

The

transitional arrangements are mentioned in Table I. “Relevant years referred to herein are all those financial years prior to hip Years in which the qualifying criteria is to be fulfilled for gaining entry or continuation into the club hip under either Condition ‘A’ or ‘B’.” The transitional arrangements allowed to the eligible Agents for the F.Ys. 2001-02, 2002-03 shall continue to be applicable till such time either one or both these Financial Years are reckoned for considering Entry or Continuing in a particular club.

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CRITERION FOR CLUB HIP UNDER TRANSITIONAL ARRANGEMENT EFFECTIVE FROM FINANCIAL YEAR 1.4.2001 TO 31.03.2002 Table I Chairman’s Club Financial Year *

Zonal Manager’s Club

Divisional Manager’s Club

Branch Manager’s Club

2001-02

2002-03

2003-04

2001-02

2002-03

2003-04

2001-02

2002-03

2003-04

2001-02

2002-03

2003-04

Net Sum Assured (Rs. in lacs)

75

85

100

48

54

60

30

35

40

11

13

15

Net No. of Lives

165

170

170

110

115

115

75

85

90

35

40

45

Entry under Condition ‘A’

** Entry under Condition ‘B’ Renewal Commission paid (Rs.)

75000

90000

1,10,000

55000

65000

80000

38000

46000

55,000

20000

25000

30000

F.Y. Commission Paid

70000

85000

1,00,000

45000

55000

70000

20000

27000

35000

12000

16000

20000

No. of Lives in force

510

530

550

345

360

370

210

220

230

108

114

120

Net Sum Assured (Rs. in lacs)

65

75

85

40

47

55

25

30

35

9

10

12

Net No. of Lives

114

118

120

85

90

100

55

60

70

26

30

35

Renewal Commission paid (Rs.)

75000

90000

1,10,000

55000

65000

80000

38000

46000

55,000

20000

25000

30000

F.Y. Commission Paid

70000

85000

1,00,000

45000

55000

70000

20000

27000

35000

12000

16000

20000

No. of Lives in force

510

530

550

345

360

370

210

220

230

108

114

120

@ Continuation under Condition ‘A’

@ Continuation under Condition ‘B’

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3.

Relaxation in fulfillment of qualifying criteria: An agent who has completed the age of 60 years as on the date of commencement of club hip year and had been a continuous member of the same club for not less than 15 hip years can continue the hip of the same club under the same condition (A or B) by fulfilling at least 75% of the criteria applicable for that condition.

4.

Condonation Clause: The condonation clause is available for entry into all the clubs under Condition ‘A’ only. With effect from the hip Year 2002-2003 failure to the extent of 25% to satisfy the condition in respect of either ‘Net sum assured’ or ‘Net Number of Lives’ may be condoned if the performance on the other count, s an increase by at least the same percentage. The condonation clause is to be applied only after the ‘Net Sum Assured’ and ‘Net Number of Lives’ during any financial year, as mentioned in previous Para are determined and such ‘Net Sum Assured’, or the ‘Net Number of Lives’ during the year is found to be falling short of the required criteria.

5.

Fulfilment of Minimum Net Business during years of failure: Effective from Financial Year 2001-2002 an agent aspiring to enter into or continue hip of any club must bring in the following net minimum business in the year of failure and keep the agency in force. Chairman’s Club 25 lacs

ZM’s Club

DM’s Club

BM’s Club

15 lacs

10 lacs

5 lacs

The provision of 25% concession for aged Club Member Agents as stated in Para 3 above is meant only in respect of basic criteria for continuation of hip under Condition ‘A’ and ‘B’ only and it is not meant to be granted to the eligible in the prescribed ‘Minimum Net Business’ viz. Rs. 25 lacs, Rs. 15 lacs, Rs. 10 lacs and Rs. 5 lacs for Chairman’s, Zonal Manager’s, Divisional Manager’s and Branch Manager’s clubs respectively.

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They will have to comply with the requirement of ‘Minimum Net Business’ in full on par with other agents. However, only under Condition ‘A’ for entry this Minimum Business condition will be inoperative in the first relevant year (eg. If the Qualifying year is 2005-06, the first relevant Financial Year is 2001-02). 6

Continuation of Club hip in the year/s of failure: If an agent does not fulfill the condition of minimum ‘net sum assured’ prescribed in the financial year reckoned to allow him/her to continue in any of the clubs, relaxation shall be allowed on one/two occasion/s as the case may be, depending on the number of years the agent has been a continuous member in the same club as per the table given below. In such a case the club hip will be treated as continued for the number of years for which he/she has not fulfilled the condition of ‘net sum assured’. No. of years of continuous hip in the same club 05 10

Relaxation allowed One occasion Two occasions.

However, the agent in the next Financial Year should not only make good the shortfall but should also show an increase of at least 10% of such shortfall. For example; the minimum ‘Net Sum Assured’ to be fulfilled by an agent for Chairman’s Club is Rs.25 lacs. However, if there is a shortfall of Rs. 5 lacs in one year, the agent should not only make good the shortfall of Rs.5 lacs in the next year, but should also bring in an additional ‘Net Sum Assured’ of Rs. 50,000/-. In other words the ‘Net Sum Assured’ in the next year should be Rs.30,50,000/-. The agent during the suspended years shall continue as a non-regular member of the club and will not be eligible for any monetary benefits including attendance at the Convention. He/she will be eligible for functional privileges only, provided Sr./Divisional Manager is satisfied on the basis of an interview that the failure to bring in the minimum Net Sum Assured was due to genuine 8

difficulties. In such a case Sr./Divisional Manager will issue necessary authorisation in writing to the concerned agent. 7.

Training: Every agent who is itted as a member of any club and/or one whose hip is continued in the said hip Year will be required to undergo training at ZTC/STC/IFSERT/Jeevan Vidya Trust or training by similar other training institute/s or by institutes engaged in on-line training as may be approved from time to time, failing which the club member agent shall render himself/herself ineligible for continuation of the benefit of the Office Allowance and interest free loan/advances in the following year.

The

Competent Authority, may however, at its sole discretion, allow reimbursement of the Office Allowance and condone interest in exceptional circumstances if it is satisfied that requirement of training could not be fulfilled due to reasons beyond the control of the agent. The reasons for allowing the benefit etc shall be recorded in writing. In the latter case, the said agent shall have to undergo training positively in the following year of continuation failing which recovery of amount so reimbursed and/or interest condoned together with interest @ 12% shall be recovered from his/her commission. Note 1: The Life are not governed by this provision. Note 2: Club aged 60 years and above are exempted. Note 3: An agent who has undergone training at any of the above institutions even as a non-club member is deemed to have fulfilled this training requirement. Note 4:The training taken shall be valid for for a period of 4 years from the date of completion of the training. Notes 5: The MDRT Training given to MDRT Qualifiers at the Zonal Training Centres would also be counted as an approved training imparted to the agent and the certificate issued by ZTCs will be recognised as proper for the purpose of Club hip benefits.

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8.

General: 1. For the purpose of complying with the requirements of Condition ‘A’ the net number of lives assured and the net sum assured there under (i.e. qualifying business) should be completed from the territory of the home Branch to qualify for hip of BM’s Club; from the territory of the home Division to qualify for hip of DM’s Club, and from the territory of the home Zone to qualify for hip of Zonal Manager’s Club. The net qualifying business completed in any part of India will count for qualifying for hip of Chairman’s Club. This clause is not applicable for the business completed in the financial year commencing from 1.4.2004 to 31.3.2005 and onwards which means that the business done by an agent in any part of India will be considered for reckoning the eligibility for qualifying for hip of any club. 2. Only a ‘Qualified Agent’ i.e., an agent who has completed the minimum business quota as per the Agents Regulations, 1972 is eligible to enter or continue as a member of any Club. 3. For new entrant to any club, he/she should have completed the minimum quota of business in the last agency year which ended prior to the commencement of hip year and in each one of the four preceding agency years. 4. If the agency is terminated for any reason whatsoever the club hip including life hip will automatically cease.

On reinstatement of

agency, the Club hip including life hip may be revived depending on the merits of the case. If as a result of any disciplinary action against the agent, the agency is terminated and subsequently it is reinstated by the higher authority, then both the club hip and life hip may be restored unless otherwise decided. 5. An agent will also lose his/her club hip if his/her agency is terminated on of non-renewal of license.

In such a case, the Sr./Divisional

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Manager (I/C) may reinstate the club hip and life hip in deserving cases provided the license is renewed in chain within a period of 1 year from the date of expiry of the licence. This applies to hip of all clubs i.e, C.M,Z.M,D.M and B.M. Club. 6. Minimum business guarantee will not apply to an agent who has been exempted from the same under the Agents Regulations, 1972. 7. Nothing contained in this set of rules shall affect the right of the Managing Director to deny Club- hip to an agent without asg any reason even if he/she has become eligible to the club or terminate the hip of an agent from a Club if he/she is already a member of one. 8. The Managing Director reserves the right to amend, alter, relax, modify or delete any or all the rules governing the grant or continuation of the hip of any or all the clubs including the grant of Life hip and the fringe benefits and the functional privileges thereof. 9. For continuation in the club either under condition ‘A’ or ‘B’ the club member need to satisfy the condition for continuation under that particular condition by which he had secured entry in to the club. A member having entered the club under a particular condition cannot take advantage of the continuation criteria under the alternative condition for continuation without first fulfilling the entry criteria under the alternate condition. An agent who wants take advantage of the continuation criteria under the alternative condition for continuation has to fulfil the entry condition of the alternative condition with the applicable lapsation clause also. 9.

Agency with any other Insurer : If any member/s of the family of an agent of Life Insurance Corporation of India has taken agency with any other insurer, then the agent who is working for LIC of India will not be eligible for grant/continuation of hip of any Club.

For the purpose of this Rule, the definition of “ of the

family” in relation to an agent will include –

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a)

the spouse and children whether residing with him/her or not.

b)

All immediate in-laws and first cousins staying under the same roof with the agent .

Various that are used in the Club Rules: 1. The year in which an agent becomes member of a Club is known as the hip Year. It runs from 1st September to the following 31st August. The Financial year immediately preceding the hip Year is known as the Qualifying Year. 2. ‘Net Sum Assured’ and ‘Net Number of Lives’ under Condition’A’ and ‘Number of lives in force’ under Condition ‘B’ i)

‘Net Sum Assured’ in each qualifying financial year will be arrived at by deducting from the total completed business in that financial year, such amount of sum assured out of the business completed by the agent in the financial year preceding the qualifying year as is treated as pucca lapsed as on 31st March of the said qualifying financial year.

ii)

‘Net Number of Lives’ 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. Credit for revived policies: Any agent who has revived policies in respect of business completed by him/her during the preceding financial year is allowed to claim credit to the extent of ‘Sum assured/lives revived’ in arriving at ‘Net Sum Assured’ and ‘Net Number of lives’ if such policies are in force as on 31st March of the qualifying financial year. However, the agent must submit the full details of such policies revived by him/her as per the Proforma ‘Annexure I’ and make a representation to the Branch Office for allowing such credit within a period of 2 months from the close of the qualifying financial year. The Branch Office after due verification of the particulars, shall grant credit in arriving at ‘Net Sum Assured’

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and ‘Net Number of Lives’ under Condition ‘A’, only if the agent is falling short of the required norm. The period of 2 months from the close of the qualifying financial year is for making a representation to the office and not for reviving the policies upto 31st May. iii)

Number of Lives in Force: ‘Number of lives in force’ are the number of lives in force at the end of each relevant year out of the total business completed by the agent from the inception of the agency to the end of each such financial year. If more than one insurance is taken on the same life in the same financial year, it will be counted as one life only.

3. Pucca lapsed policies: The policies under which overdue /s remain unpaid for more than six months from the date of the first unpaid are deemed to be pucca lapsed for the purpose of arriving at Net Sum Assured and Net Number of Lives in determining agents eligibility for hip of any club. All policies issued in the previous financial year which stand pucca lapsed as on 31st March of the subsequent financial year are to be deducted from the policies issued in the subsequent year to arrive at the ' Net'figure for considering the agent' s eligibility for Club hip under Condition ' A'irrespective of whether the first unpaid was due in the previous financial year or the subsequent financial year. 4. First Year Commission includes Bonus Commission paid in the financial year. 5. Commission ‘earned’ means Commission actually ‘paid’ to the agents during any financial year.

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ANNEXURE - I APPLICATION FOR HIP INTO CM/ZM/DM/BM/DISTINGUISHED AGENTS CLUB ENTRY / CONTINUATION I request you to it/continue me in _________ Club for the hip Year _________ I give below the necessary data regarding my agency/business/commission etc. for your consideration : Name of the Agent ___________________________ Address :___________________________________ ___________________________________________ ___________________________________________ Phone No. Office :_____________ Resi. :_____________

Code No. _________________

E-mail ______________

Cell No._____________

Date of Birth :__________________ Date of Appointment : ___________ Qualifi. Academic _______________ Professional ______________ Insurance _______________

Nature of conveyance ____________________ Date of supply :__________________________ Are you having PC _______________________ Bank A/c - Name of Bank __________________ SB/Current __________________ A/c No._____ __________________

Training Attended STC/ZTC/MDC/IFSERT/ JEEVAN VIDYA/OTHERS

Institute

Name of the Agent

Name of other member of the family who is an agent.

B.O. Code No.

Period

Date of Appointment

Club hip

Relationship

Club hip of _____________________ (Name of Club) since______________ MDRT hip since ____________________ NEW BUSINESS DATA (last 5 Agency Years ending before the close of Qualifying Financial Year ) Agency Year ending Policies Sum Assured(Rs)

In last 5 Financial Years F.Y. ending (1)

Net No. of lives (6)

FYC

No. of Policies (2)

No. of lives (3)

Sum Assured (Rs) (4)

Net Sum Assured (Rs) (7)

Commission earned (other than prescribed plan) BC RC

F.P.I. (Rs)

F.P.I. (Rs) (5)

Net F.P.I. (Rs) (8)

NB under Pension Plan TOTAL (Rs)

LIVES.

PREM. (Rs)

COMM. (Rs)

14

(Rs) (9)

(Rs) (10)

Net No. of lives in Force (16)

(Rs) (11)

(12)

No. of policies Revived (17)

(14)

(13)

No. of policies lapsed during the year First year lapse Others (18) (19)

No. of claims arisen during the year Total (20)

Non early (21)

(15)

Early (22)

Repudiated (23)

Total non early claim since agency Appointment (24)

I declare that the above details are true and correct for the best of my knowledge. I agree to abide by the rules of Club hip. I agree that my selection as Club Member/continuation as a Club Member is based on my performance/interview. I also confirm that I am not subjected to any disqualification under any provisions or Regulations of Agency Rules, 1972, Amended Agency Rules, 2000, Insurance Act, 1938, IRDA Regulations, 2000. Witness :

Signature

Observations/recommendations of Sr/BM : Sr/DM : RM(Mktg) : ZM :

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ANNEXURE II Form of Application by an agent for claiming credit for Sum Assured and Number of Lives in respect of policies revived in of Circular Ref: dated: . (This form is applicable to the Qualifying F.Y. 2001-02 only. Appropriate changes be made in the form for its use in the subsequent years.) To, The Branch Manager, LIC of India, Branch Office, ---------------. Dear Sir, Re: Credit for S.A., & Number of lives in respect of Policies revived for Club hip Year (2002-2003). I wish to inform you that during the financial year 2001-2002, I have been instrumental in reviving the undermentioned policies which were influenced by me in the financial year 2000-2001 and which stood pucca lapsed in the qualifying financial year 2001-2002. I now claim credit for sum assured and number of lives in respect of the aforesaid revived policies for the qualifying year 2001-2002. To enable you to consider my claim, I furnish here in below the requisite information: Sl. No.

Policy No.

Name of Life Assured

Sum Assured

Date of commencement

Date of Lapse

Date of revival

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Position of the Policy as at 31.3.2002. (8)

Kindly examine my claim and allow me credit for S.A.& No. of Lives as above for determination of hip of ------------ club for the hip Year 2002-2003.

Yours faithfully, Signature of the Agent Code No.__________.

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Lapsation Clause Lapsation Clause has been introduced in the revision of club rules, 2001. Lapsation for this purpose will be the ratio of the number of policies lapsed without payment of full first year’s s as at 31st March of the qualifying year out of the total number of policies issued during a financial year to the total number of policies issued during that financial year. For example, if the hip Year is 2003-2004, the qualifying year will be 2002-2003 and the lapsation for the F.Y. 2001-02 will be the ratio of No. of Policies lapsed without payment of full first year’s s as at 31.3.2003 out of the total number of policies issued during 2001-02. Illustration:F.Y. 2002-03

Total No. of Policies introduced in F.Y.(A) 106

2001-02

141

No. of Policies Lapsed without payment of Full First Years’ (B) No. of Policies lapsed as at 31.3.2004 out of (A) : 12 No. of Policies lapsed as at 31.3.2003 out of (A): 28

% of Lapse Ratio B/A x 100 11.32 19.85

The clause for lapsation will be reckoned prospectively from the hip year 2002-2003 i.e. qualifying year 2001-2002. Lapsation will not be reckoned for the F.Ys prior to 2001-02 and the same has to be ignored even if it is more than 15%. Cases where lapsation of policies secured by an agent is more than 15% are to be dealt with as follows: a) For Existing Club Member agents: i) Where Lapsation is > 15% (no rounding off) for one year, there will not be any disincentive for the agent. ii) If the Lapsation continues to be more than 15% for two consecutive years, the agent will not be able to attend the club convention also besides this he will not be given any fresh advance for fast conveyance or housing loan till such time the lapse ratio remains greater than 15%. (iii) If the Lapsation continues to be more than 15% for three consecutive years, the agent will neither be eligible for attending the convention nor the office allowance (Stationery Allowance in case of BM’s Club Member Agent) for that particular hip year. (iv) If the Lapsation is over 15% for four consecutive years, the agent will loose his hip of the club.

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Lapsation is > 15% (F.Y.) M.Y. 2001-2002 2002-2003 2003-2004 2004-2005

2003-2004 2004-2005 2005-2006 2006-2007

(i) No effect (ii) mentioned above (iii) mentioned above (iv) Loose hip

Any existing club member agent whose lapsation is more than 15% continuously may loose his club hip only in the M.Y.2006-2007. (b) For such agents who are aspiring to become Club : If the lapsation of policies secured by such an agent is more than 15% for any financial year then that year will not be considered for reckoning the eligibility for entry into any club even if/she meets all the other conditions. The agent will have to qualify for one more year. If the lapsation of policies by such an agent is more than 15% for two consecutive financial years proceeding the qualifying year, then the agent shall have to start afresh. No credit will be given for the years during which he/she would have already qualified. The agent whose lapsation is more than 15% for the F.Y.2001-2002 will not be eligible for the club hip for the M.Y.2003-2004. They have to qualify for one more year. However for the years qualified already prior to the F.Y.2001-2002 even if the lapsation is more than 15% there will not be any effect. If an agent is qualified for entry into a club under condition ‘B’ and the lapsation is high(15%) in any year preceding the qualifying year, the same has to be ignored then after his qualifying for one more year, he can be considered for entry into the club. In such a situation the agent should be allowed to enter the club under condition ‘B’ even if he qualifies in the Q.F.Y and 2 out of 3 F.Yrs. preceding the Q.F.Y as against the original entry condition under ‘B’. (Q.F.Y and 2 F.Ys preceding the Qualifying Year). One time relaxation applicable for the M.Y.2003-04 in respect of Lapse ratio more than 15% but less than 18% for the F.Y. 2001-02 The following one time relaxation to all the aspirants to Chairman’s/Zonal Manager’s Club for the M.Y.2003-04 has been given:1. All the aspirants to C.M’s/Z.M’s/D.M’s/B.M’s club may be invited to appear for the interview even where the lapsation is more than 15% but less than or equal to 18% for the F.Y.2001-02.

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2. Revivals upto 31.3.2004 out of business for F.Y.2001-02 may be taken into for considering the Net Lapse Ratio. The agents who have been awarded the club hip by availing one-time relaxation in respect of lapsation (>15% but <18%) for the F.Y.2001-02 (M.Y.200304) are eligible for entry into higher club for the later years i.e, M.Y.2004-05 and later if they other wise satisfy the respective criteria. This is applicable only for those agents who have become club for the M.Y.2003-04 by availing one-time relaxations in respect of Lapsation. The relaxation (15% to 18%) under lapsation for the F.Y.2001-02 is not applicable for those agents who qualify for any club for the M.Y.2004-05 and onwards. Treatment of Lapse ratio to the promoted/demoted club within the club:The Existing club member Agents who qualify for a higher club will be treated as a “New Agent” and conditions of Lapsation applicable for agents aspiring to become club would be applicable. However, in cases of existing club member agents who are sliding down to a lower club they will be treated as an existing member of the lower club and conditions of lapsation applicable for existing club member (of the lower club) would be applicable.

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Distinguished Agents Clubs The following criteria has been prescribed for Distinguished Agents’ Clubs: The agent should have completed minimum two agency years and should be a confirmed agent. The entry condition as well as continuation would be reckoned on the basis of Agents’ performance during the financial year. The hip would also commence on 1st April following completion of two agency years provided the agent satisfies the eligibility criteria. Rural career agents/Urban career agents: The R.C.A and U.C.A would become eligible only after they have completed two agency years after stipendiary comes to an end. The following benefits are payable to the of the distinguished club. 1. Sales promotional Gift items -- Rs. 150/- per year. 2. Supply of letterheads, envelops and visiting cards as mentioned in the CIP 3. Reimbursement of stationery expenses. Rs. 400/-. A convention of Distinguished Agents’ club ’ along with the Branch Managers club should be held. During such convention the of clubs should be requested to contribute their ideas on various aspects of selling and servicing Life Insurance Business. The rules should be published in the divisional house bulletin and steps should be taken to draw a list of prospective club so that a larger number of agents are enrolled in the said club. CRITERION FOR (NEW & CONTINUING HIP) FOR DISTINGUISHED AGENTS'CLUB EFFECTIVE FROM FINANCIAL YEAR 1.4.2001 TO 31.3.2002 Entry: Net Sum Assured (Rs. In lakhs)

-

15

Net Number of Lives

-

45

Net Sum Assured (Rs. In lakhs)

-

12

Net Number of Lives

-

35

Continuation:

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LIFE HIP OF CLUBS Club hip is a personal honour for the agent. It is earned by the agent with consistency in business for a number of years and also as a result of rendering effective service to the policyholders. It is, therefore, thought appropriate that if an agent continues his hip in a club for certain number of years he should be recognised as a life member of that particular club. With effect from the M.Y. 1986-87 the facility of awarding the Life hip is available to Chairman’s and Zonal Manager’s Clubs only. Beginning from the hip Year 2002-2003, Life hip for Chairman’s and Zonal Manager’s Clubs will be granted on fulfilment of any of the following conditions: A) Minimum age of 60 completed years as on the date of commencement of Club hip year; and Continuous hip in the same club (either Chairman’s or Zonal Manager’s club) for not less than 15 hip years OR B) Continuous hip in the same club (either Chairman’s or Zonal Manager’s Club) for not less than 25 hip years. If an agent after having been a continuous member of the Zonal Manager’s Club for less than 15 years and then becomes a member of the Chairman’s Club and he/she continually retains his/her hip of CM’s Club for at least that many years that is falling short to reach 15/25 years, for being a Life Member, then in such a case Life Member of Z.M Club shall be awarded to that agent by clubbing those years in which he/she was a member of the C.M’s Club. It may be noted that while reckoning the number of hip years completed in either Chairman’s Club or Zonal Manager’s Club though the suspended hip year will not be counted for eligibility for life hip, but it will not be treated as a break in the continuity of hip in the club. A non-regular life member is the one who has not fulfilled the eligibility criteria prescribed for the Chairman’s/Zonal Manager’s Club. A non-regular life member will not be eligible for any monetary benefits including participation in the Convention. Such an agent will be eligible for functional privileges only.

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Notes:1. An, agent who becomes a life member of a club and also qualifies for the hip of a higher club, will have the option to avail of the benefits and functional privileges of either the life hip of the lower club or the benefits and functional privileges as a regular member of the higher club. He shall not be entitled to the benefits of both the clubs concurrently. 2. The agent will continue to be a life member as long as he is an agent and does the MBG (unless he is an exempted there from) and will be entitled to exercise all functional privileges of the club concerned with reference to servicing etc. If at any point of time, he fulfils the requirements for condition of hip, he will automatically be restored to full fledged hip. 3. For continuing as an ordinary member a life member should be a “Qualified Agent” (i.e, an agent who has fulfilled the MBG as per (Agents) Regulations for continuing his life hip, unless he has been exempted under the Regulations from the annual business quota (MBG). Honorary hip of Chairman’s Club: Chairman may it, at his sole discretion, an agent as an Honorary Member of Chairman’s Club, on such and conditions, as Chairman may lay down from time to time. Once an agent is itted as an Honorary Member of the Chairman’s Club, he will continue to remain as such unless his Honorary hip is withdrawn by the Chairman. An Honorary Member of Chairman’s Club shall enjoy all the privileges of the Chairman’s Club.

22

Mementos to Club Member Agents The club member agents who are not covered under the Group Insurance Scheme(GIS) for club member agents shall get the memento. The value of the memento to be given to the club member agents who are not covered under the GIS scheme w.e.f. M.Y 2002-03 is as under: Club hip Chairman’s Zonal Manager’s Divisional Manager’s Branch Manager’s

Amount (Rs.) inclusive of taxes packaging etc. 750 375 200 100

The Life of Chairman’s/Zonal Manager’s Club who are covered under GIS and non-regular Life ( i.e, not qualified as a regular member) are not entitled for the Mementos. The respective Branch Offices shall arrange for the purchase and distribution of the Mementos to all the eligible Club . The cost of Mementos is to be absorbed by the respective Divisional Offices under the head ‘Club Expenses’. The Branch Offices will send the necessary Debit Advices to their controlling Divisional Offices. Necessary budget provisions are to be made under this by the Divisional Offices in respect of all the Club Member Agents who are not covered under the GIS Scheme. The distribution of the Mementos should be completed before the close of the Financial Year falling in the hip Year. For example for the M.Y.2004-2005 the distribution of the Mementos and absorption of the expenses should be completed before 31.3.2005.

23

GROUP INSURANCE SCHEME FOR CLUB MEMBER AGENTS The Group Insurance Scheme was introduced w.e.f. 1.9.1991 to provide group insurance cover to the of the various clubs (in lieu of the annual memento). The Manager (Sales) is designated as the ‘Master Policyholder’. The Divisional Offices should maintain proper record of all those covered by the group insurance. The sales dept. of the Divisional Office shall pay the requisite amount of to P&GS Unit at each Divisional Office. The scheme is compulsory for all eligible new entrants to different clubs provided their age is not above 64(as at the beginning of the hip Year). A club member agent who is not eligible to the scheme or who have been discontinued from the scheme on of age restriction will continue to get the benefit of the memento. Satisfactory evidence of health as required by the Corporation shall be furnished by every eligible member, at the time of his entry into the scheme. As such at the time of interview for ission to various clubs, a D.G.H. together with the form of appointment of beneficiary will be got completed. Since, at present there is no requirement of interview for agents entering into B.M’s Club, the afore said two requirements may be got completed at the time of finalising their entry into B.M’s Club.The club member agent who has ed the scheme will not be allowed to withdraw from the scheme later on unless he is disqualified to continue as a member to any of the clubs or crossed the maximum age. Accident cover will be available under the said GIS scheme. The nature of the accident benefit will be similar to one issible under life policy i.e. double the basic sum assured in case of death by accident. However, disability benefit is not allowed. No additional is to be charged for the Accident Benefit. The G.I Cover allowed to of various clubs is as shown below:Club hip

Chairman’s Zonal Manager’s Divisional Manager’s Branch Manager’s

S.A coverage available to different clubs upto age 60(nearer birthday) W.e.f.M.Y. 94-95 to 2002-03

S.A coverage available to different clubs upto age 65(nearer birthday) W.e.f. M.Y. 2004-05 and onwards

125000 75000 37500 18750

240000 120000 60000 30000

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Functional Privileges to Club Member Agents: The following functional privileges are allowed to Agents who are of D.M’s Club and above. 1. Attest the signatures and thumb impressions of policyholders and claimants or identify policyholders. 2. To receive loan/claim cheques on behalf of their policyholders/clients on production of required authority letter from the claimant. 3. of the Club at the level of the Z.M’s and C.M’s Club are eligible to attest copies of university or matriculation/higher secondary examination/SSLC certificates after satisfying that the certificate is genuine and pertains to the life proposed. In order to facilitate the club in the matter of quicker attention to their new business for high sum assured, the corporation has vested authority in the club to submit moral hazard reports as per particulars given below: MHR Limits for Club Member Agents A

ii) iii) iv)

Career agents or direct agents or agents working under a Development Officer. of Branch Manager' s Club and Distinguished Agents'Club. Divisional Manager’s Club Zonal Manager’s Club Chairman’s Club

i) ii)

Introduction of proposers to medical examiners and for special reports. Zonal Manager’s Club Chairman’s Club

i)

B

Limits upto Rs. SUC

10 lacs 20 lacs 30 lacs 50 lacs Sum Proposed 30 Lacs 50 Lacs

The authority as mentioned above shall continue so long as they continue to be a respective Club Member. The guidelines regarding the above are to be followed as per the instructions given by respective departments of Central Office from time to time.

25

Interviews for Club hip The hip to the Divisional Manager’s/Zonal Manager’s/Chairman’s Club will not be automatic. Such of those agents who qualify for hip for these clubs will be interviewed and only after their being found suitable they will be itted to the club to which they are eligible based on their performance. Mere fulfillment of criteria for entry to any club does not confer upon an agent the club hip unless he/she has been interviewed and found suitable for ission to the club by the Competent Authority. Every agent who is to be itted to any club for the first time or who is to be promoted to the higher club shall be subjected to an interview by the Competent Authority. This is true even for promotion of a Zonal Manager’s Club Member to the Chairman’s Club or Divisional Manager’s Club to Zonal Manager’s Club. Interview for entry into the Chairman’s/Zonal Manager’s club shall be conducted by a committee constituted as per the guidelines issued by the Central Office from time to time. More than one committee depending upon the number of candidates to be interviewed can be formed so that interviews are completed as quickly as possible. The agent/s who do not fit into the philosophy of these clubs meant for professionals should not be itted. It may however happen that though a few agents, who may be quite conversant with the various plans of insurance, may not be actually working in the field and selling life insurance. Such agents would not be suitable for entry to the clubs and are to be weeded out at the time of interview for entry into these clubs. The real touchstone for hip into these senior clubs is that the agent should be one who besides being conversant with the fundamentals of life insurance, various plans of the Corporation and other saving instruments and market especially Insurance market, should be working in the field and selling life insurance and providing due services to policyholders. In addition, his/her conduct and behaviour shall also be taken into while granting the hip. The agents who have been relegated to a lower club due to non fulfilment of business conditions should not be called for the interview. There will be no interview for an agent who becomes eligible for ission into B.Ms Club/Distinguished Club. An agent who becomes eligible for ission to Divisional Manager’s Club will be interviewed by the Sr./ Divisional Manager (I/C) of the Division.

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The Regional Manager (Mktg.) in the cadre of the Zonal Manager will hold the interviews and it the agents into Z.M’s/C.M’s Club. The interview committee constituted for this purpose will be one R.M from the Zonal Office preferably one who has worked on the Marketing side (to be nominated by Zonal Manager), Sr./Divisional Manager(I/C) of Divisional Offices and Marketing Manager of the Division. If an agent who has appeared for an interview before the interview committee has failed to satisfy the committee for two successive years, then such an agent may be given a third opportunity to appear for the interview. However the competent authority for allowing this will be the Zonal Manager(I/C) for interviews to the C.M’s Club and Z.M’s Club and the Sr./Divisional Manager(I/C) of the Division for the Divisional Manager’s Club. The Zonal Manager (I/C) of the Zone or the Sr./Divisional Manager (I/C) of the Division as the case may be should record the reasons in writing for allowing third opportunity. If such an agent fails to satisfy the interview committee on the third occasion then such an agent has to be debarred for two years from appearing for the interview. However, thereafter the agent may be called for an interview, in the third year, provided he/she is still satisfying the conditions of entry into the club and Sr./Branch Manager make special recommendations stating as to how he considers the agent has improved and is worth considering for entry into the club. In case of an agent who is called for an interview for the third year, as stated above, no T.A or D.A is payable to such an agent, even though the interview takes place outside his/her headquarters. The debarring of an agent for two years from appearing for the interview in the event of failure on his/her part to satisfy the interview committee for three successive years holds good irrespective of the levels of club for which he/she was interviewed. The interviews shall be completed in such a way that the results are declared by 31st July every year.

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Corporate Identity programme and printing of stationery for club . The number of visiting cards, letter heads and Envelops to be supplied to club member agents are specified below: Type of the club Chairman’s Zonal Manager’s Divisional Manager’s Branch Manager’s Distinguished

Total number to be supplied every year

250 200

Letterheads 210mm x 145mm x 297 mm 227 mm 250 750 250 500

250 250

750 500

150

250

250

250

250

100

150

150

150

150

100

100

100

100

100

Visiting cards

envelops 9” x 4” 6” x 3.5”

After the agents are made aware of Corporate Identity Programme (CIP), they may get the job of printing of stationery and visiting cards at their own level subject to confirming the parameters laid down in the CIP. Declaration of having got the job done along with the specimen copy of the stationery/visiting card shall be submitted for claiming reimbursement. However, Sr./Divisional Manager in-charge are authorised to ascertain and approve a particular rate for printing letterheads, envelops and visiting cards depending upon the printing charges prevailing at the division. Agents are the first line of with the general public and it is imperative that they create a proper impression among their clientele. To create uniformity and consistency in the usage of visiting cards and other official stationery used by the club member agents a Corporate Identify Programme has been designed. Part V of the said CIP deals with the design system of visiting cards and stationery that will help enhance the desirable visual impact idenfiable with LIC in the minds of their public. It is necessary that -1. These being corporate instructions, no deviation of any nature, which may be contrary to the said guidelines is permissible. 2. All our offices are advised to keep all CIP folders properly filed so that they are readily available for the purpose of official reference. 3. The O.S dept. and Marketing dept. in particular should ensure that printing of fresh stock of all stationery items and visiting cards being used by club member agents, is strictly in according with the guidelines designs and measurements given in this CIP.

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4. All efforts should be made to impress upon the printers to strictly follow dimensions of our corporate logo, emblem and club hip logos as also to match the colours with the corporate blue and respective club hip logo colour while printing. 5. the Marketing dept. at the zonal and divisional office should ensure strict implementation of the CIP in letter and spirit. The colour prescribed below will be used for printing the logo identifying the club Club hip

Colour

Chairman’s Zonal Manager’s Divisional Manager’s Branch Manager’s Distinguished

Red Blue Green Orange Yellow

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Sales promotional Gift items As the name itself implies, these items are given to the club so that they can present them to their policyholders and prospects. The Corporation is bringing out various sales promotional items such as policywallets, key chains, purses, pen sets etc. and these are sold to the agents at prescribed prices. They help agents to build up good relationship with clients and also contribute to further sales. Although priced, as a part of the fringe benefit, club are given these gift items free of cost up to the value of such gift items as mentioned under: Club hip Chairman’s Zonal Manager’s Divisional Manager’s Branch Manager’s

Sales promotional gift items (including Diaries and calendars) up to the value of Rs. 1400 840 500 180

The following guidelines are to be followed while purchasing/placing order/s for sales promotional gift items: 1. Rules regarding approval and purchase as per the stores code should be followed for which adequate number of quotations to decide on lowest quotation may be called. 2. Appropriate number of items should be ordered so that there is not unnecessary accumulation of items in the office. 3. “Sales promotional Gift” items should have logo/emblem of LIC. 4. While calling for quotations quality and other specifications are to be made clear, so that all quotations are comparable.

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LIC Guest House Facility:“ of clubs at each level (Chairman’s, Z.M’s, D.M’s or B.M’s clubs) would be permitted to stay at guest houses, if any, of the LIC maintained in the area of the respective offices (Central Office, or the Zonal Office or Divisional or Branch Offices) according to the level of the Club of which they are , at the same rate and subject to the same conditions as are applicable to the employees of the Corporation”. Complimentary copies of Diaries and Calendars LIC produces diaries and calendars every year for sale to agents to help them to give as present to their clients, prospects etc. For personal use of of the various clubs they are supplied diary/calendar every year, free of cost as per the particulars below for the year:Applicable for the club member agents (Club hip Year 2003-04) Club hip Corporate Club Chairman’s Zonal Manager’s Divisional Manager’s Branch Manager’s Distinguished Club

Items given free of cost 1 Table Diary(), 1 Pictorial Calendar 1 Table Diary( Ordinary), 1 Pictorial Calendar. 1 Table Diary (Ordinary), 1 Pictorial calendar. 1 Table Diary (Ordinary), 1 Pictorial calendar. 1 Table Diary (Ordinary). 1 Pictorial calendar.

Complimentary copy of ‘Yogakshema’ of Chairman’s and Z.M’s Club are entitled to a free copy of ‘Yogakshema’ every month.

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Office Allowance It is acknowledged that maintaining an office of his/her own helps the agent to render better and efficient service to policyholders. It also helps to further his sales of new business and increase the income. It helps the policyholder and the public of the area to approach the agent and meet him/her in office for advice, assistance or help. It adds status and raises the agent’s standing in the eyes of the public. Maintaining an office, therefore, applies with greater emphasis in the case of club . The club have a much greater standing as compared to the ordinary agents, and therefore, an office is a must for them. With a view to help our club member, who maintains an office of his/her own for the purpose of rendering service to policyholders and claimants, the Corporation is granting Office Allowance. Reimbursement of Office Allowance is done to the CM’s ZM’s and DM’s club for maintaining an “Office” depending on the expenses incurred during the hip Year which includes-• • • • • •

Rent paid (Actual) Salaries paid to Staff (Actual) Postage incurred (Actual) Amount spent on stationery upto a certain fixed maximum amount Amount spend on Office maintenance and Electricity upto a certain fixed maximum amount Expenses on entertainment upto a certain maximum amount

“Office” should at least have the following minimum infrastructure – 1. Room of decent size that can be called an ‘office’ and should have seating space for the agent, his staff and customers. 2. At the entrance a visible board specifying the name of the Agent, his/her club hip, Name of the Corporation. 3. Furniture – Chairs, Table, Almirah / Other storage cabinets for keeping the records/documents of the clients. 4. Adequate publicity of our existing/new products should be made in the office. Needless to mention, that the office should not be indicative of the agent indulging into showing any kind of interest in the sale of products of our competitors. 5. All important stationery/manuals/relevant brochure/pamphlets/documents that would enable him to canvass business. Care has to be taken to ensure that the office is being properly maintained by the agent before his office allowance is released. The rules regarding payment/reimbursement of Office Allowance applicable to different clubs w.e.f. M.Y.2002-03 have been envisaged in Annexure. 32

The Branch Manager’s Club will be reimbursed stationery expenses for a value not exceeding Rs. 1000/-. These items will enable them to maintain relevant basic records useful for running an agent’s office and render better service to policyholders and to set up an office as soon as he enters the D.M’s club. The Sr./Branch Manager(In-charge) or an n. Officer to be nominated by the Sr./Branch Manager of the Branch Office where the agent is working will inspect the office/related bills/books of s for reimbursement of Office Allowance. The papers for sanction of reimbursement will however be sent to the controlling Divisional Office. Additional Office Allowance on of lesser Lapsation:A Chairman’s/Zonal Manager’s/Divisional Manager’s Club Member agent will be eligible for ‘Additional Office Allowance’ (in addition to the Office Allowance an agent actually earns) at the following rates if the percentage of lapsation of policies is 10% or less in each of the last 3 financial years preceding the qualifying year at the following rates: Percentage of lapsation % 10 or less 9 or less 8 or less 7 or less 6 or less 5 or less 4 or less 3 or less 2 or less 1 or less 0

Additional Office Allowance % 5 8 10 12 15 18 20 22 25 28 30

The Additional Office Allowance shall be calculated on the total Office Allowance payable to him. Branch Manager’s Club Member Agent will be eligible for Additional Stationery Allowance and the same shall be calculated on the aforesaid lines. Additional Office Allowance will be calculated on the basis of the average of the lapsation percentages of the last three financial years preceding the Qualifying Year. The Lapsation has to be less than or equal to 10% in each of the last three years. Since the additional office allowance has been introduced during the revision of club rules, 2001 the same has to be released taking into the lapsation percentage for –

33

• • •

Financial Year 2001-02 (for one year only) for the M.Y. 2003-04 Financial Year 2001-02 and Financial Year 02-03 (average for two financial years only) for the M.Y.2004-05 M.Y. 2005-06 and onwards the calculation of “Additional Office Allowance” three years lapsation percentage is to be taken into i.e, F.Y.2001-02, Financial Year 2002-03 and F.Y.2003-04.

The Additional Office Allowance up to Rs. 6000 (if eligible and paid) for maintenance of personal computer is also to be included in the Total Office allowance for the purpose of calculation of Additional Office Allowance for lapsation less than 10%. Branch Manager’s Club Member Agent will be eligible for additional Stationery Allowance and the same will be calculated on the aforesaid basis. Claiming the office allowance:1. The office allowance as above should be claimed by the member during the Club hip Year but not later than six months after the expiry of Club hip Year. 2. The reimbursement of Office Allowance shall be subject to the inspection of office, related bills, books of s, etc., by the Sr./Branch Manager in-charge or an officer not below the rank of istrative Officer to be nominated by the Sr./Manager incharge of the Branch Office where the agent is working.

3. The concerned Club Member Agent will have to submit all the original bills/receipts to the office and our offices while making the payment will affix a stamp (only on those original bills/receipts for which the reimbursement/payment has been made) to the effect that so much amount has been paid as office allowance after deducting TDS. Thereafter the original bills/receipts may be returned to the Club Member Agent after retaining the copies of the same duly certified by a Class I officer of the Corporation. The same procedure may be followed for payment/reimbursement of Telephone Expenses to the eligible Club Member Agents. The wording of the stamp to be affixed on the Bills/receipts may be as follows: “Rs…………….. reimbursed as office allowance for M.Y…….. TDS Rs……………………….”

34

Annexure i)Present rules for computing total expenses of club member agents (CM' s, ZM' s & DM' s) for maintaining an office during the hip year include (i) Rent Paid (actual), (ii) Salaries paid to staff (actual), (iii) postage incurred (actual) and (iv) amount spent on ' stationery'upto a certain fixed maximum amount. From hip year 2002-2003, while revising the maximum limit for expenditure on stationery, expenses up to a certain maximum amount towards (i) Office Maintenance and Electricity and (ii) Entertainment, in addition to above existing items, would be included for the purpose of determining office expenses during the hip year to a club agent as provided below: Expenses on Expenses on Entertainment. Expenses on Office Maintenance and Electricity Stationery (Expenses allowable on electricity alone will be limited to 1/4th of the actual electricity bill provided office is not at residence of the club member. Maximum Maximum Limit Limit Maximum Limit Chairman' s Club Rs.1400.00 Rs.1700.00 Rs.700.00 ZM' s Club Rs.550.00 Rs.850.00 Rs.1000.00 DM' s Club Rs.330.00 Rs.400.00 Rs.550.00 ii) (a) The amount payable as ' Office Allowance'to of CM' s/ZM' s/DM' s Clubs with effect from hip Year 2002-2003 would be 50% of actual expenses determined as in (i) above OR 7 1/2 % of total commission (FYC + RC) earned by the agent in the preceding financial year OR Rs.30,000.00 in the case of CM' s Club Member, Rs.17,000.00 for ZM' s Club Member and Rs.8,500.00 for DM' s Club , WHICHEVER IS THE LEAST

35

NOTE: Where both the agent and his/her spouse are Club Member Agents, and then in such a case Office Allowance will be payable to only one Club Member Agent. If both the agent and his/her spouse are Club Member Agents of different clubs, then in such a case only one Office Allowance as applicable to the Higher Club will be reimbursed. In view of this the facility of payment of Office Allowance for maintaining t office by the club member agents will no longer be available. (b) Chairman' s Club Member maintaining a personal computer shall be paid an additional office allowance at the rate of 5% of the amount in excess of the total commission over Rs.1,85,000.00 subject to a maximum of Rs.6,000.00 Note: The above additional office allowance is paid to CM’s Club Member for maintaining a personal computer i.e, expenses

incurred for using the computer. This will be paid even the PC is not under AMC and no loan/advance has been taken by the agent from the corporation for purchase of the same.

iii) Branch Manager' s Club will be entitled to reimbursement of stationary expenses upto Rs.1000.00.

36

Telephone Facility The C.M’s/Z.M’s Club Member Agents maintaining the telephone are allowed reimbursement as under:- (W.e.f. the M.Y.2004-2005 and onwards) (a) Actual amount spent on Call Charges/Rentals irrespective of the Type of Connection/ Service Provider, subject to the maximum as specified below depending on the place of the Telephone Exchange where they are maintaining the telephone. Sr. No. 1.

2.

3. 4 5 6 7. 8 9 10.

Place Classification Cities/ Places where MTNL operates and the number of calls inclusive of free calls allowed is 3600 viz., Mumbai & Delhi Cities/ Places where BSNL operates and the number of calls inclusive of free calls allowed is 3600 viz., Bangalore; Bhopal; Chennai; Hyderabad; Ahmedabad; Lucknow; Kanpur; and Kolkata. Cities/ Places where MTNL operates and the number of calls inclusive of free calls allowed is 2700. viz. Thane Other Cities where the existing BSNL General Package Rent is Rs 250/- pm Cities where the existing BSNL General Package Rent is Rs 180/- pm Cities where the existing BSNL General Package Rent is Rs 120/- pm Rural Centers where the existing BSNL General Package Rent is Rs 210/- pm Rural Centers where the existing BSNL General Package Rent is Rs 150/- pm Rural Centers where the existing BSNL General Package Rent is Rs 110/- pm Rural Centers where the existing BSNL General Package Rent is Rs 50/- pm

Max. Amount to be Reimbursed/Year C.M’s Club Z.M’s Club Member Member Rs. 5310 + ST

Rs. 2310 + ST

Rs. 6000 + ST

Rs. 3000 + ST

Rs. 4600 + ST

Rs. 1600 + ST

Rs. 5100 + ST

Rs. 2100 + ST

Rs. 4260 + ST

Rs. 2100 + ST

Rs. 3540 + ST

Rs. 2100 + ST

Rs. 3960 + ST

Rs. 1440 + ST

Rs. 3240 + ST

Rs. 1440 + ST

Rs. 2760 + ST

Rs. 1440 + ST

Rs. 2040 + ST

Rs. 1440 + ST

*S.T:- Service Tax

37

In case there is any classification other than what is mentioned in the above chart the B.Os have to fix the maximum amount of Reimbursement taking into the Annual Rental charges applicable to BSNL’s General Package plus the call charges @ Rs. 1/- for Urban Centers and @ Rs.0.80 for Rural Centers (as fixed by the BSNL for the place of the Telephone Exchange where the Telephone is maintained) for 3600/ 2700 calls after excluding the free calls (50 calls per month in Urban areas, 75 calls per month in rural areas) allowed per year. In case of Z.M Club Member Agent, the quantum has to be fixed by taking only the call charges. b) Actual Installation charges will be reimbursed only to the C.M’s Club for the Landline phone. The Z.M’s Club Member Agents are eligible for reimbursement of actual call charges only subject to the maximum fixed as above. c) No activation charges etc. will be reimbursed in case of Mobile Phones. Only the Actual Rentals plus call charges and service charges will be reimbursed subject to the maximum amount specified above as applicable to the place of the Exchange where the phone is maintained. In case of pre-paid phones the agent has to submit the cash voucher/bill along with the counterfoil of the pre-paid voucher containing the distinctive number. d) The ceiling on the maximum reimbursement (as decided above) will be revised proportionately if the rates of call charges/rentals are subsequently decreased/increased. Time Limit for Reimbursement:The Telephone call charges and rental charges etc. as stated above will be settled (or reimbursed) every quarter as soon as the bill is received. The claim for payment will have to be submitted within six months from the expiry of the club hip year.

38

Income Tax on Office Allowance & Fringe Benefits to Club I.T at the appropriate rates has to be deducted as per rules on all payments including reimbursements made to the agents towards office allowance, telephone and other items such as letterheads, visiting cards, sales promotional gift items etc. Income Tax should also be deducted at source as per rules on the payment/reimbursement made to Branch Manager’s/Distinguished Club Member Agents towards stationery items. However, a mention should be made in the yearly Income-Tax certificate issued to the agent about the tax deducted at source on such items. The agents may be suitably advised to claim the expenses incurred by them while filing their Income-tax returns to the satisfaction of the assessing officer. The above instructions will have effect from 1st of April, 2005. Certificate of hip:The of the Agents Clubs will get a duly signed certificate of hip from the Chairman, Zonal Manager, Divisional Manager or the Branch Manager depending upon the club in which the hip is enjoyed. It is necessary that the club member agent displays the ‘certificate of hip (alongwith the Agents’ Licence) in Office maintained by them as this will impress the visitors and clients about the stature in the profession. In respect of C.M’s Club the hip Certificates will be issued to the New Entrants to the Club only and ‘a letter certifying the continuing hip’ will be issued to all the existing of the C.M’s Club by the respective Zonal Offices. Club hip Badges:Club.

The Club hip Badges will be given only to the New Entrants to the

39

Various authorities for ission/termination of Agent Clubs

Name of the Club Branch Manager’s Club/Distinguished Club. Divisional Manager’s Club Zonal Manager’s Club

Chairman’s Club

Competent Authority For ission to club For termination of hip of club Officer in-charge of Officer in-charge of Branch Division Officer in-charge of Zonal Manager(I//C) of the Division Zone Regional Manager(Mktg.) Zonal Manager(I//C) of the duly authorised by the Zone Z.M(I/C) of the Zone. Life hip will be awarded by Z.M(I/C) of the Zone. Regional Manager(Mktg.) Zonal Manager(I//C) of the duly authorised by the Zone Z.M(I/C) of the Zone. However, Life hip will be awarded by Chairman.

40

Group Mediclaim to Club Member Agents Group Mediclaim is allowed to Club Member Agents and some of the salient features are as follows: Cover for various Agent Groups are as follows: Club Chairman’s Club Zonal Manager’s Club Divisional Manager’s Club Branch Manager’s Club

Cover Rs. 1 lakh Rs. 60,000 Rs. 40,000 Rs. 25,000

The for the above is shared by the club member agent and LIC on 50:50 basis. Since this is a welfare scheme, the scheme is mandatory for all the Club Member Agents. The coverage is allowed to the club member agents upto the age of 80. All the Branch Offices are required to deduct the from all the Club Member Agents from their commission in one lump sum latest by December every year and the s deducted should be credited to A/c code No. 3212. It should be made clear to all the Club Member Agents that all diseases/injuries which are pre-existing are not covered . Only such agents who are ing the scheme for the first time or ed earlier but discontinued and are again ing are required to fill in the ‘Health Declaration form’. Other agents are not required to fill in the ‘Health Declaration Forms’. Documents required for settlement of claims: (To be submitted to the designated office of the GIC/TPA as specified and informed from time to time) i) Filled and signed Claim Form ii) Original Discharge Summary iii) Original Final Hospital Bill iv) Original Cash Receipts establishing proof of payment to the hospital v) Original prescriptions from the attending doctor for the medicines purchased (alternately the Pharmacy bills can be endorsed by the doctor on the reverse) 41

vi) Original pharmacy bills vii) Reports for the investigative procedures undertaken viii) Doctor’s requisition for the investigative procedures ix) Signed blank discharge voucher x) Certificate from LIC Divisional Office (signed and stamped by the Nodal Officer) confirming Club hip of the insured person.(Format of the certificate given at Annexure-A) All the Zonal offices are required to send the data to Central Office and also to the office of the General Insurer with whom the policy is renewed (details will be intimated) in the format given in the Annexure-B on a floppy (in Excel) in respect of all the Club Member Agents of their Zone (Division wise). Important Points to be noted by the Divisional Offices. 1. Manager (Sales) to act as Nodal Officer for the Division. 2. to be deducted from the commission of ALL the Club member agents by the month of December every year. 3. List (as per the enclosed Annexure-II) to be prepared in Excel and be given to the respective Zonal offices by the 30th November every year. 4. Health Declaration Forms of ONLY new /discontinued but ed again to be sent in one lot to the office of the General Insurance Company by the 31st December every year. 5. Under no circumstances the claim papers etc. have to be sent to Central Office. Important Points to be noted by the Zonal Offices. 1. Consolidated list of all the Divisions in the Zone to be sent in a floppy (in Excel) to the Agency Section, Marketing Department, CO and to office of the General Insurance Company the by the 31st December every year.

42

Health Declaration Form (To be filled by the agent only while ing the scheme or reing the scheme after a gap.) Group Mediclaim Insurance Member's Personal Statement Form

NAME OF THE AGENT ADDRESS FOR COMMUNICATION

AGENCY CODE NO. DATE OF BIRTH SEX MALE / FEMALE DETAILS OF ANY KNOWLEDGE OF ANY POSITIVE EXISTENCE OF PRESENCE OF ANY AILMENTS, SICKNESS OR INJURY WHICH MAY REQUIRE MEDICAL ATTENTION IN IMMEDIATE FUTURE AND / OR DETAILS OF ANY AILMENT. SICKNESS OR INJURY WHICH HAD BEEN TREATED DURING THE PRECEEDING 12 MONTHS. PARTICULARS OF ANY OTHER ILLNESS / INJURY / ACCIDENT / OPERATION SUSTAINED BY YOU IN THE PAST. NATURE OF ILLNESS / DISEASE / NAME OF DATE FIRST WHETHER INJURY AND TREATMENT ATTENDING TREATED FULLY RECEIVED MEDICAL RECOVERED PRACTITIONER STATE WITH ADDRESS YES / NO AND TEL. NO.

DECLARATION - I hereby declare and warrant that the above statements are true and complete. I consent and authorize the Insurers to seek medical information from any Hospital / Medical Practitioner who has at any time attended or may attend concerning any disease or illness which affects my physical or mental health. I agree that this proposal shall from the basis of the contract should the insurance be effected. If after the insurance is effected, it is found that the statements, answers or particulars stated in this personal statement form are incorrect or untrue in any respect the Insurance Company shall incur no liability under this insurance. PLACE SIGNATURE OF MEMBER DATE P.S. For and conditions and exceptions for this insurance please be guided by Our Policy issued to LIC. Health declaration form

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Ref: LIC/ Medi Claim

Annexure ‘A’

__________________ __________________ __________________ __________________

Dear Sir,

Date: Re: Settlement of Claim

This is to certify that Shri/ Ms. __________________________, Ag. Code ______________, BO _________________ under Division _________________ is a member of the Group Mediclaim Insurance Policy No. -------------------------------since ________________ . He is a member of the ___________________ Club and mediclaim has been deducted from his/ her commission. Your’s faithfully, Nodal Officer (Manager (Sales) Stamp to be affixed Annexure ‘B’

Format of the Data to be prepared In Excel 1. 2. 3. 4. 5. 6. 7. 8.

Sr. No. Name Ag. Code BO Division Zone Club hip (eg.:MY 2004-2005) deducted (Rs.)

44

Invitation for Annual Convention A convention of the respective club will be arranged every year. The idea of such a convention is to promote a spirit of camaraderie amongst of a club and also to help them to share their experience and new ideas with their colleagues. Discussions/seminars on topics of importance like Underwriting, New Products and subjects of importance concerning of insurance agency are normally arranged in such conventions. Such professional conventions will help in enriching the knowledge of the participants for scientific selling. Rules of T.E and other expenses for attending club conventions are as under: (w.e.f. MY.2002-03 and onwards) Club hip category 1. Chairman’s 2. Zonal Manager’s

3. Divisional Manager’s

4. Branch Manager’s

Mode of Travel allowed Air Fare (Economy Class) or II/III A.C.Sleeper. 1st Class or second class Two Tier AC or Three Tier AC Sleeper (if reservation in first class is not available)

1st Class or second class Two Tier AC or Three Tier AC Sleeper (if reservation in first class is not available) 1st Class or second class Two Tier AC or Three Tier AC Sleeper (if reservation in first class is not available)

Out of Pocket Expenses Rs. 2500 Rs. 1400. However, in respect of club belonging to the place where the convention is held will be paid an amount of Rs. 250/- as local conveyance and these agents shall not be paid Rs.1400/- as out of pocket expenses. Rs. 400. However, in respect of club belonging to the place where the convention is held shall not be paid any out of pocket expenses. Rs. 200. However, in respect of club belonging to the place where the convention is held shall not be paid any out of pocket expenses.

Note:1. Journeys to be undertaken by the shortest route. Otherwise the reimbursement would be made limiting the fare to the shortest route. 2. No separate T.E./D.A will be paid. 3. No separate Conveyance charges are allowed. 4. No Lodging/Boarding expenses are allowed

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Re: Travelling Expenses to Agents The revised rules for reimbursement of Travelling Expenses to Agents if not specified otherwise will be as under: Category

Eligibility

For all Agents who attend Training at By train (other than Rajadhani/Shatabdi) various Training Centres First Class or AC III Tier. Wherever the facility of AC III tier is not existing or where reservation is not available, the agent may travel by AC II Tier (in trains other than Rajadhani/Shatabdi) and the Competent Authority to decide this will be the Sr./Divisional Manager(I/C). In case of travel by any other mode(higher/lower), the actuals incurred will be reimbursed subject to the maximum limit of III A/C(ord. train) For all Agents who attend Educational Seminars, Conventions (other than annual club conventions), Competitions, get-together etc. at various levels.

The entitlement will be decided by the controlling office which should be within the budget sanction of the concerned office.

Whenever agents are sponsored for any Training programme or for any other purpose their entitlement of the T.E. as above or other wise is to be specifically mentioned in the communication sent to them.

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Daily Allowance allowed to Agents The Daily Allowance payable to Agents who are required to undertake tours for Official purposes depending upon their club hip and the classification of cities are as shown hereunder : Category of Club Member Agent

“A” Class City (Rs.)

“B” Class City (Rs.)

“C” Class City (Rs.)

Chairman’s

270

240

200

Zonal Manager’s

270

240

200

Divisional Manager’s

190

145

125

Branch Manager’s

170

125

110

Other Agents

150

100

80

1. The of the various Clubs as also other agents who are paid lump sum amounts towards “Out-of-pocket” expenses for club conventions, training, various developmental meets or any other occasion at the rate approved from time to time no separate daily allowance shall be issible. 2. Classification of cities and other and conditions with regard to payment of Daily Allowance are as under:CLASSIFICATION OF CITIES: The classification of cities viz., “A”, “B” and “C” is same as that of applicable from time to time to the employees of the Corporation while on tour. APPLICABILITY OF DAILY ALLOWANCE: (i) (ii) (iii) (iv)

Where free lodging and boarding are provided to an Agent at the place of halt, only 1/4th of the Daily Allowance will be issible. Where free boarding is provided to an Agent at the place of halt, half of the Daily Allowance will be issible. Where free lodging is provided at the place of halt, 3/4th of Daily Allowance will be issible. Daily Allowance for journey period will be paid at the rate applicable at the place of destination i.e, the place of tour.

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METHOD OF CALCULATION OF DAILY ALLOWANCE: (i)

(ii)

Where the total period of absence from headquarters is more than 24 hours, each period of 24 hours or any subsequent part thereof, reckoned from the scheduled time of departure from headquarters to the actual time of arrival at headquarters will be treated as a ‘day’ and D.A paid accordingly. Where the absence from headquarters is 24 hours or less:(a) Where the total period of absence is less than 8 hours but more than 4 hours, D.A at half the rate will be payable. (b) Where the total period of absence is 8 hours or more, D.A at full rate will be payable.

INCIDENTAL CHARGES: The method of allowing the incidental charges are same as those are applicable to the employees of the Corporation while on tour i.e., actual incidental expenses, but not exceeding half the Daily Allowance payable to them for each completed journey.

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Club hip and Credit for Business under different plans of assurance Unless other specified under any plan of assurance, the credit for the business done by any agent should be allowed in full in respect of the number of lives, income, commission etc for club hip purpose. Some of the plans of assurance which are to be dealt with in following manner in the matter of credit for club hip purpose. 1. Group Insurance Business will not be taken into for the purpose of Club hip. 2. If an agent secured two policies one under Jeevan Saathi Plan on the lives of wife and husband tly and the other policy under any individual plan on the life of either husband/wife. In such a case the credit of only one life will be given to an agent. 3. (i) Under Bima Nivesh Claim the number of Lives and Sum Assured will be counted while considering entry or continuation of Club hip under condition ‘A’ of the Club hip Rules. (ii) 15% of First Year Commission paid under Bima Nivesh Plan will be considered for qualifying and continuation norms under condition (B) 4. 50% of credit for lives and 100% of commission credit to be given while no credit for SA and to be allowed under Varishtha Pension Bima Yojana. 5. The credit for business under individual pension plans to the agent for the purpose to qualify or to continue for club hip from the year 2000-01 has been withdrawn. However, the same has been restored again with effect from the hip year 2002-03 on the same lines as was given earlier prior to the withdrawal the credit. 6. Credit for Bima Plus Plan:- Credit will be given for the number of lives, sum assured and income received under the plan. 7. Credit for Future Plus Plan:No. of Lives Full S.A Full S.A for which the Life cover is opted for. Commission Full *For giving any credit the top-up (additional ) and commission on such top-up s are to be excluded.

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Annuity Business for Agents’ Club hip: For determining the eligibility for agents for hip of various agents’ clubs credit of sum assured may be given to the extent of purchase price in case of Immediate Annuity policies and to the extent of cash option available at the vesting date in the case of Deferred Annuity policies. As regards number of lives, actual number of lives assured may be taken into . Further, the commission paid to the agents under the aforesaid policies may also be taken into for the purpose of condition ‘B’. 1. If annuity policies are sold to different persons (though the purchaser may be the same) the policies will be treated as on different lives. 2. If annuity policies are sold to different purchasers (though the annuitant will be the same) the policies will be treated as on different lives. 3. Regarding sale of more than one policy to a person where-under the purchaser is also the Annuitant, the policies may be treated as on one life only. 4. t Life Annuities may be treated as policies on one life. Jeevan Dhara and Jeevan Akshay: Sum Assured equivalent to purchase price in case of single policy, in case of policies other than single the total payable during the deferment period and the number of lives under Jeevan Dhara/Jeevan Akshay plans will be taken into consideration while considering entry or continuation of club hip under condition ‘A’ of the Club hip Rules. First Year and/or Renewal Commission under the plans will be considered for qualifying and continuation under condition ‘B’. Number of lives in force under Jeevan Dhara Claim before vesting alone will be considered for under condition ‘B’. Jeevan Suraksha Plan:Sum Assured credit equivalent to 1/3rd of the notional cash option (resultant figure to be rounded off to the nearest multiple of hundred) in case of Jeevan Suraksha Policy will be taken into consideration while considering entry or continuation of Club hip under condition ‘A’ of the Club hip Rules. First Year Commission or Renewal Commission will also be considered for entry or continuation under condition ‘B’ of the Club hip Rules. For the purpose of Number of lives Jeevan Suraksha Plan will be reckoned. It should be noted that number of lives in force under Jeevan Suraksha Plan before vesting alone will be considered for the purpose of the rules under condition ‘B’. As the proposer and annuitant happen to be the same person under Jeevan Suraksha Plan, his multiple policies will mean policies on a single life only and appropriately reckoned.

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Formation of Corporate Club The Corporate Club has been formed w.e.f. the hip Year 2004-2005. The following criteria has been prescribed for Corporate Club. • •

The qualifying year for this Club would be a Financial Year. The first hip Year would be 01.09.2004 to 31.08.2005 and the first qualifying financial year would be 2003-2004.

I. The qualifying condition for entry and continuation to the Club would be same and would be as under: • •

Agent should be a MDRT qualifier for two consecutive years proceeding the qualifying financial year. For the M.Y. 2004-05 Agent should be a MDRT qualifier for the Calendar years 2001 and 2002. Commission Requirements: (for entry and continuation) (a) First Year Commission paid only on LIC business (excluding Bonus Commission, Commission on P&GS business/ Commission on Mutual Fund Business) at least double of MDRT Production Requirement (FYC basis) to be fulfilled in the qualifying financial year and also in the financial year preceding the qualifying year. Eg: If the MDRT Production Requirement (FYC basis) for the Calendar Year 2002 and 2003 is Rs. 4,97,497/- and Rs 5,19.200/respectively then the agent can be considered for the Corporate Club only if he has been paid Rs. 9,94,994/- and Rs 10,38,400/First Year Commission (on LIC business) as stated above in the FY 2002-2003 and FY 2003-2004 respectively. OR (b) 75% of the First Year Commission paid of what is stipulated as at (a) above AND Rs 10 lacs of Renewal Commission paid during each of the qualifying financial year and also in the financial year preceding the qualifying year. Eg: If the MDRT Production Requirement (FYC basis) for the Calendar Year 2002 and 2003 is Rs. 4,97,497/- and Rs 5,19.200/respectively then the agent can be considered for the Corporate Club only if he has been paid at least Rs. 7,46,246/- (i.e. 75% of Rs 9,94,994/-) and Rs 7,78,800/-(i.e. 75% of Rs 10,38,400/-)First Year Commission (on LIC business) as stated above along with Rs. 10 lacs of renewal Commission in each of the FY 2002-2003 and FY 2003-2004 respectively.

51

•

First year Lapsation not to exceed 15%. Eg. While reckoning the hip for the Qualifying Year 2003-2004, the First Year Lapsation Ratio for the FY 2002-2003 as at 31.03.2004 will be considered. (as explained in the Revised Club Rules-2001)

II. Interview for Club hip: Mere fulfillment of Criteria for entry to this Club does not confer upon an agent the Club hip unless he/ she has been interviewed and found suitable for ission to the Club by the Competent Authority. A three member committee constituted at the Zonal Level will conduct the interviews for the Corporate Club. The Regional Manager (Mktg.) will be the chairman of the committee and the two other (not below the cadre of Regional Manager) are nominated by the Zonal Manager (I/C) of Zone. III. Benefits: •

Interest free car Advance ofActual price of the Car OR Last two Years’ Renewal Commission. OR Rs 10 lacs, WHICHEVER IS LESS If the agent does not qualify for the “Club” later then interest will be levied on the outstanding advance as per the prevailing rules.) (Note: However as a one time relaxation the Car loan for the purchase of the superior model car for those qualifiers who have earlier availed of Car advance will be considered subject to the repayment of the outstanding advance of the existing car in one lump sum.

•

Office Allowance: For computing total expenses of Club Member agents for maintaining an office during the hip Year include a) Rent Paid (actual) b) Salaries paid to the staff (actual) c) Postage expenses incurred (actual) d) Amount spent on stationary upto a maximum of Rs. 700/e) Expenses on office maintenance and electricity upto a maximum of Rs. 1400/- (Expenses allowable on electricity alone will be limited to 1/4th of the actual electricity bill provided the office is not the residence of the Club Member. f) Expenses on entertainment upto a maximum of Rs. 1700/g) Expenses for maintaining personal computer.

52

The amount payable as Office Allowance would be 50% of the actual expenses as determined above OR Rs 45,000/-, WHICHEVER IS LESS. Note: Where both the agent and his spouse are Corporate Club member agents, then in such a case office allowance will be paid to only one member agent. If the spouse of the Corporate Club member is also a member of one of the CM’s/ZM’s/DM’s/BM’s Club then only the Corporate Club member will be paid the office allowance. The Office allowance should be claimed during the Club hip Year but not later than six months after the expiry of Club hip Year. • •

Additional Office allowance of Rs. 5,000/- if lapsation is less than or equal to 5%. Facility to attend a Convention/ Educational Seminar OR Reimbursement of Air Fare of Rs. 60,000/-(including applicable taxes) or actuals whichever is lower towards Air Fare to the of the corporate Club who attends the MDRT Annual Meet at USA/Canada.

•

Reimbursement of Rs. 15,000/- to the Qualifiers who attend the MDRT Annual Meet at USA/ Canada.

•

The following fringe benefits will be paid at par with CM’s Club/ ZM’s Club/ DM’s Club/ BM’s Club to qualifiers of the Corporate Club fulfilling the conditions of respective clubs.(as per the revised club Rules, 2001) a) Sales Promotional Gift Items (including Diaries and Calendars) b) Supply of letterheads with envelopes and visiting cards c) Telephone facility d) Group Mediclaim Scheme. e) Group Insurance Scheme for Club Member Agents.

•

The following advances will be paid at par with CM’s Club/ ZM’s Club/ DM’s Club/ BM’s Club to qualifiers of the Corporate Club fulfilling the conditions of respective clubs.(as per the Revised Scheme of Advances for Agents, 2001) a) b) c) d) e) f)

Advances for Office Equipments Other Advances (for Miscellaneous Purposes) Flood, Drought, Cyclone Advances Festival Advance Advance for Computers Advance for training 53

IV. Agency with other Insurer: If any member/s of the family of an agent of the Corporation has taken up agency with any other life Insurer, then the agent will not be eligible for the ission to/ continuation of the hip of this Club. For this purpose, “ of family” in relation to the agent will includea) Spouse/ Children whether residing with him or not. b) Brothers/ Sisters, all immediate in-laws and first cousins staying under the same roof with the agent. V. Pre MDRT Meet, MDRT Conventions at Corporate level, Zonal level and Divisional level will not be held. VI. The agent/ member will be required to submit the claim of hip/ continuation on prescribed format as per proforma (Annexure III) within 30 days of New Business closing. The office will the claim within 7 days of receipt. The interviews shall be completed in such a way that the results are declared by 31st July every year. VII. Roster to be prepared for the Qualifiers of this Club in the format specified. If any member of this Club does not qualify for continuation then depending on the performance, his/ her status (CM’s Club/ ZM’s Club/ DM’s Club/ BM’s Club/ Dist. Club/ No Club) will be ascertained. VIII. Nothing contained in these rules shall affect the right of the Managing Director to deny Club hip to an agent without asg any reason even if he/ she has become eligible to the Scheme or terminate the hip of an agent from the Club. IX. The Managing Director reserves the right to amend, alter, relax, modify or delete any or all the rules governing the grant or continuation of the hip of the Club including the benefits thereof.

54

Revision in the Rules and Benefits for CORPORATE CLUB w.e.f. M.Y. 2006-2007 The rules and benefits for the Corporate Club w.e.f. the MY 2006-2007 would be as under: The qualifying condition for entry and continuation to the Club would be same and would be as under: •

Commission Requirements: (for entry/ continuation) First Year Commission paid only on LIC business (excluding Bonus Commission, Commission on P&GS business/ Commission on Mutual Fund Business) at least Rs. 11 lacs in the qualifying financial year and also in the financial year preceding the qualifying year. Note- Those who have already met the production requirement in F.Y.2004-05 basing on the earlier criteria, in order to qualify/continue for the MY 2006-2007 they should have been paid FY Comm. of Rs. 11 lacs in the FY 2005-2006.

The agents with a minimum 5 years standing as on 1st September of the hip Year will be allowed to the club. Eg:- The agents with a minimum 5 years standing as on 1st September, 2006 will be allowed to the club for the M.Y 2006-2007. •

However, the of the Corporate Club (MY 2005-2006) if qualifying for MY 2006-2007 and thereafter should be allowed to continue even if they are not having the minimum 5 years standing. •

The qualifying criteria are liable to be revised every year/ alternate year.

•

First year Lapsation not to exceed 10%. Eg. While reckoning the hip for the Qualifying Year 2005-2006, the First Year Lapsation Ratio for the FY 2004-2005 as at 31.03.2006 should not exceed 10%. (As explained in the Revised Club Rules-2001)

•

No relaxation whatsoever will be given for qualifying for the Club.

55

. Benefits: •

Interest free car Advance ofActual price of the Car OR Last two Years’ Renewal Commission. OR Rs 10 lacs, WHICHEVER IS LESS Note: 1. However as a one time relaxation the Car loan for the purchase of the superior model car for those qualifiers who have earlier availed of Car advance under Scheme of Advances to Agents will be considered subject to the repayment of the outstanding advance of the existing car in one lump sum. 2. If the agent does not qualify for the “Club” later then interest will be levied on the outstanding advance as per the prevailing rules. However if he is qualifying for the lower club i.e. CM’s/ZM’s Club then the outstanding balance of Car advance will be bifurcated into interest free and with interest portions.)

•

Office Allowance: For computing total expenses of Club Member agents for maintaining an office during the hip Year include h) Rent Paid (actual) i) Salaries paid to the staff (actual) j) Postage expenses incurred (actual) k) Amount spent on stationary upto a maximum of Rs. 700/l) Expenses on office maintenance and electricity upto a maximum of Rs. 1400/- (Expenses allowable on electricity alone will be limited to 1/4th of the actual electricity bill provided the office is not at the residence of the Club Member. m) Expenses on entertainment upto a maximum of Rs. 1700/n) Expenses for maintaining personal computer. The amount payable as Office Allowance would be 50% of the actual expenses as determined above OR Rs 45,000/-, WHICHEVER IS LESS.

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Note: Where both the agent and his spouse are Corporate Club , then in such a case office allowance will be paid only to one member agent. If the spouse of the Corporate Club member is also a member of one of the CM’s/ZM’s/DM’s/BM’s Club, then the Corporate Club member only will be paid the Office Allowance. The Office allowance should be claimed during the Club hip Year but not later than six months after the expiry of Club hip Year. •

Additional Office allowance of Rs. 10,000/- if lapsation is less than or equal to 5%.

•

Facility to attend a Training Programme/ Educational Seminar (India/ Abroad) for which an amount of Rs. 30,000/- will be reimbursed. OR Reimbursement of Air Fare after attending the MDRT Annual Meet at USA/ Canada.

•

Reimbursement of Rs. 15,000/- to the Qualifiers who attend the MDRT Annual Meet at USA/ Canada.

•

No linkage of fringe benefits with any of the other clubs (CM’sZM’s,DM’s/BM’s). The following fringe benefits will be given to the Corporate Club . A. Total Reimbursement for Telephone facility: Rs. 10,000/- p.a.(Including landline (call charges and rental) and mobile (only call charges).) B. Supply of letterheads with envelopes and visiting cards (as per CIP). Quantity may be specified as i) Letter heads – 1000 per year ii) Visiting Cards – 500 per year.

•

Interest free Computer/ PC/ Laptop Advance upto a maximum of Rs. 1 lac (If the agent does not qualify for the “Club” later then interest will be levied on the outstanding advance as per the prevailing rules and as per Note 2) under Car advance)

•

Group Insurance of Rs. 4,40,000/-. Memento in lieu of those above 65 years of Rs. 1500/Group Mediclaim of Rs. 100,000/- (Full to be borne by the Corporation) Reimbursement for undergoing Computer Training at a reputed training Institute (to be decided by the concerned Sr. Divisional Manager)- Rs. 5,000/-

• •

57

•

The other advances will be at par with Club to which the qualifiers of the Corporate Club qualify for. (as per the Revised Scheme of Advances, 2001) The advances which were granted to an agent prior to his becoming Corporate Agent shall continue under the earlier scheme or the agent can also opt for premature repayment.

•

The following Functional privileges are allowed for the Corporate Club . 1) MHR limit-up to Sum under consideration of Rs. one Crore. However, the MHR given by these agents will not be counted for allowing 20% increase in the financial eligibility. 2) Introduction for FMR and special reports up to sum proposed Rs. One crore. Other Functional privileges relating to policy servicing will be at par with C.M’s Club Member Agents. (For this instructions issued from to time by respective Depts. at Central Office are to be followed)

•

Annual Convention for the Corporate Club .

58

(This form is applicable to the Qualifying F.Y. 2006-07 only. Appropriate changes be made in the form for its use in the relevant years.) `Annexure III(M.Y.06-07) (Proforma) APPLICATION FOR THE HIP INTO CORPORATE CLUB I request you to it/continue me in the Corporate Club for the hip Year:………………. I give below the necessary data regarding my agency / performance etc. for your consideration. 1.

NAME____________________________

2.

MALE/ FEMALE: ____________________________________________

AGENCY CODE_________

3.

ADDRESS (RES.)____________________________________________ ____________________________________________ RESIDENTIAL TELEPHONE _________________________________

4.

WHETHER MAINTAINING OFFICE (Y/N)_______________________ IF YES, ADDRESS (OFFICE)__________________________________________ __________________________________________ OFFICE TELEPHONE ________________________________________ MOBILE:________________ E-MAIL ID_________________________

5. 6.

DATE OF BIRTH:_______________ ACADEMIC QUALIFICATION: Academic: Professional: Technical:

7.

DATE OF APPOINTMENT AS AN AGENT:______________________

8.

WHETHER DIRECT OR ATTACHED TO A DEVELOPMENT OFFICER: __________________________________________________ IF ATTACHED, Name/ Code of the DO:__________________________

9.

FULL TIME/ PART TIME:_____________________________________

10. NATURE OF CONVEYANCE:

DATE OF SUPPLY:

11. IF PC AVAILABLE: 12. TRAINING PARTICULARS: SR.NO.

TRAINING DEATILS

ATTENDED AT

PERIOD (MM/YY)

59

13. PERFORMANCE AND COMMISSION PARTICULARS : FINANCIAL YEAR

FIRST YEAR COMMISSION PAID

2005-2006 2004-2005

RENEWAL COMMISSION PAID

Not Applicable

14. LAPSATION DATA FINANCIAL TOTAL NO OF POLS YEAR INTRODUCED IN THE FY (A)

NO OF POLICIES LAPSED WITHOUT PAYMENT OF FYP AS ON 31/03/2006 (B)

%AGE LAPSATION (B)* 100 (A)

2004-2005

15. CONTINUOUS MEMBER OF THE MDRT SINCE THE TEAR:_______ I AGREE THAT THE ABOVE DETAILS ARE TRUE TO THE BEST OF MY KNOWLEDGE.I AGREE TO ABIDE BY THE RULES OF THE CLUB HIP. SIGNATURE

60