What is the minimum policies required for an LIC agent with in first one year of Agency to complete minimum target of LIC i.e. how many life insured in one financial year & Sum Insured value.
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What is the minimum policies required for an LIC agent with in first one year of Agency to complete minimum target of LIC i.e. how many life insured in one financial year & Sum Insured value.
Currenty minmum business for agency has been revised to 1 lac premium in a year with minimum 12 different life.
I had only 50000/- business last year, so can I continue my agency. Ya, I have covered 12 life.Quote:
Originally Posted by CopyCat
Business criteria needs be averagely meet in 5 years. So if they are getting 50,000 premium in first year then next year if you get 1,50,000. Finally first 5 years premium and life will be checked and it will need to be 5,00,000 (1 lac x 5 years) and 60 (12X 5 years) life.
If you have any other question, pls ask.
Good Info - CopyCat. Thanks for sharing with all of us. :thumb:
Thanks CopyCat!
See attachment for LIC Minimum Business Requirement.
but after 5 years what is the minimum criteria ?
As per IRDA Draft regulation on persistency of life insurance policies (20 insurance policy per year mandatory for Agent) -Quote:
Originally Posted by rameshsen
(1). Where average annual persistency ratio is less than 50%, the agency licence would not be renewed.
(2). The minimum number of policies per agent shall be 20 policies per annum.
(3). The minimum First Year Premium Income to be procured by an agent would be Rs.1, 50,000 per annum.
(4). Where an agent falls short of achieving either (2) or (3) listed above, he or she would have to achieve proportionately more in either one to make up for the shortfall in the other.
(5). Spouses and close relatives of employees of insurers shall not be engaged as agents by insurers.
Source - IRDA.gov.in
Minimum Business Guarantee (Minimum amount of Business) to be fulfilled by the Agents - (Ref: Mktg/ZD/16/2009 24.07.2009)
Attachment 761
An agent shall bring in the following business in each of his First, Second and Third agency year - “Proposals resulting in policies on at least Twelve different lives for not less than First Year Premium Income (FYPI) of Rs. One Lac; Provided that a shortfall in fulfillment on one count namely lives or First Year Premium Income shall be condoned up to a maximum of 50% at the end of 3rd Agency year:
Provided further that it is compensated with same or higher percentage increase on the other count and further subject to the condition that the agent brings in not less than six proposals resulting in policies on at least six different lives and at least Rupees Fifty Thousand First Year Premium Income in each of the First, Second and Third years of his agency.
In Fourth Agency Year and in subsequent agency years, at least Twelve proposals resulting in policies on at least twelve different lives with First Year Premium Income of at least Rs.1 Lac. Please note that the condonation shall not be applicablefrom fourth agency year onwards.
Note:
Please note that the agents appointed on or after 09.07.2009, the above mentioned minimum business guarantee shall be applicable with immediate effect.
For the agents who were appointed before 09.07.2009, the minimum business guarantee shall be applicable from the agency year falling after the date of notification.
Exemption from MBG Condition :
If an agent worked continually for a period of
a) Not less than 21 years
or
b) at least 15 years and he is at least 55 years of age
or
c) 15 years and at any time subsequent thereto there is business in force yielding a renewal premium income of not less than Rs 40,000/- per annum.
Then the agent can be treated as exempted from MBG.