Statement is clear - 12 policies each year If you haven't sold 12 life policies each year for 5 years.(=5*12)
But it is an old thread, please check with your LIC office, because LIC used to change their policies. See below news.
Hindustan Times News Jan’2011
The LIC had raised targets for its agents to a minimum of Rs one lakh as first year premium every year, meaning, each agent would have to sell policies worth Rs 20 lakh on average every year.