Direct Marketing Department, 6th Floor (Link), Yogakshema, Nariman Point, Mumbai

Ref: CO/DMKT/CO-LIC (DIRECT) SCHEME/2015

Dt: 01.04.2015

ALL
ZONAL MANAGERS/SR.DIVISIONAL MANAGERS/
REGIONAL MANAGERS(DMKT)/UNIT MANAGERS(DMKT)
RE: LIC of India [CHIEF ORGANISER (LIC DIRECT)] SCHEME, 2015
It has been decided to introduce a new scheme called LIC of India [Chief Organiser
(LIC DIRECT)] Scheme, 2015 for the Direct Sales Executives having at least three years
standing [A year for this purpose shall constitute of twelve calendar months] in Direct
Marketing Department. This Scheme shall come into force with effect from
01.04.2015.
A copy of the Scheme is enclosed with the Circular. Detailed Administrative
instructions will be issued separately.

Executive Director (Direct Mktg.)

Encl: Scheme

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DIRECT MARKETING DEPARTMENT, CENTRAL OFFICE, MUMBAI

Dt: 01.04.2015
RE: LIC of India [CHIEF ORGANISER (LIC DIRECT)] SCHEME, 2015
The Life Insurance of India hereby formulates the following Scheme, namely:
A) SHORT TITLE AND COMMENCEMENT:
This Scheme shall be called the LIFE INSURANCE CORPORATION OF INDIA [CHIEF ORGANISER
(LIC DIRECT)], Scheme, 2015 .The Scheme shall come into force from 1st April 2015.
B) DEFINITIONS:
1) In this scheme, unless the context otherwise requires,
a) Insurance Agent means a person(i) Appointed by LIC of India for the purpose of soliciting or procuring insurance
business including business relating to the continuance, renewal or revival of
policies of insurance as per IRDAI Guidelines/Regulations on Appointment of
Insurance Agents.
or
(ii) who has been appointed as an agent under rule 4 of the Life Insurance
Corporation of India (Agents) Rules, 1972
b) Agents Rules means the Life Insurance Corporation of India (Agents) Rules, 1972 as
amended from time to time.
c) A CHIEF ORGANISER (LIC DIRECT) means a person authorized under this scheme to
recommend suitable candidates for appointment as Direct Sales Advisor(DSA) under
such terms and conditions by way of an agreement to be executed between such CHIEF
ORGANISER (LIC DIRECT) and Life Insurance Corporation of India.
d) Chairman means the Chairman of the Life Insurance Corporation of India.
e) Corporation means the Life Insurance Corporation of India.
f) Competent Authority means the Senior/Divisional Manager in-charge of the Divisional
Office.

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g)

Club Rules shall be the rules as amended from time to time prescribing the various
terms and conditions on which membership to the various clubs are granted to the
Agents.

h) Divisional Managers Club Member Agent means an agent of the Corporation who on
fulfilling the conditions of the Club Rules as amended from time to time and has been
granted the membership of Divisional Managers Club for Agents and continues to be
such member of the Divisional Managers Club.
i) Zonal Managers Club Member Agent means an agent of the Corporation who on
fulfilling the conditions of the Club Rules as amended from time to time and has been
granted the membership of Zonal Managers Club for Agents and continues to be such
member of the Zonal Managers Club.
j) Chairmans Club Member Agent means an agent of the Corporation who on fulfilling
the conditions of the Club Rules as amended from time to time and has been granted
the membership of Chairmans Club for Agents and continues to be such member of
the Chairmans Club.
k) Corporate Club Member Agent means an agent of the Corporation who on fulfilling
the conditions of the Corporate Club Rules as amended from time to time and has been
granted the membership of Corporate Club for Agents and continues to be such
member of the Corporate Club.
l) Direct Sales Executive or DSE means a person engaged as per terms and conditions
of the
i. LIC of India (Direct Sales Executives) Scheme, 2009.
ii. LIC of India (Direct Sales Executives) Scheme, 2010
iii. LIC of India (Direct Sales Executives) Scheme, 2010 (Amended upto 17.03.2011)
m) Direct Sales Advisor or DSA means a person working as an agent in Direct Marketing
Channel of LIC of India.
n)

Review Year in relation to CHIEF ORGANISER (LIC DIRECT) shall mean (i) In the first year of his selection, the period from the date of his selection to the
end of the month in which he completes twelve months as a CHIEF ORGANISER (LIC
DIRECT) (hereinafter referred to as the First Review Year of such CHIEF
ORGANISER (LIC DIRECT), and
(ii) In the subsequent years of his appointment, every successive period of twelve
months following the completion of the First Review Year.
o) First Year Premium means first premium received under single premium policies and
first year premiums received under non-single premium policies.
2) All words and expressions used herein and not defined but defined either in the Agents
Rules or the Club Rules shall have the meanings respectively assigned to them in those
Rules.

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C) ELIGIBILITY CRITERIA:
The applicant should be DSE having at least three years standing
[A year for this purpose shall constitute of twelve calendar months]
a)

AGE:

The candidates should have completed minimum age of 25 years at the time of entry into
this Scheme. The Maximum age up to which they can work as a CHIEF ORGANISER (LIC
DIRECT) shall be 70 years.
b) SELECTION PROCESS:
Interested and eligible candidates fulfilling the above eligibility criteria will be required
to submit an application. This will be followed by an interview of candidates by a three
Member Committee constituted by the Sr./Divisional Manager I/C of the Divisional Office.
The committee will be headed by an officer not below the rank of Assistant Divisional
Manager and the other members of the committee will be not below the rank of
Administrative Officer.
Selected applicants will have to resign as DSE and take a fresh agency under the Agents
Rules, and also enter into a separate agreement with the Life Insurance Corporation of
India on such terms and conditions as may be defined from time to time. The agreement
shall be signed by Sr. /Divisional Manager I/C or a person authorized by him on behalf of
the Corporation and the applicant shall be authorized to act as a CHIEF ORGANISER (LIC
DIRECT).
The agreement shall be for a period of Five years and renewable thereafter for a period of
five years or less in case of CHIEF ORGANISER (LIC DIRECT) attaining 70 years of age.
The Competent authority may terminate this agreement by giving one months notice
thereof in writing even if the CHIEF ORGANISER (LIC DIRECT) has fulfilled minimum
performance norms as specified from time to time. However, the CHIEF ORGANISER (LIC
DIRECT) during this notice period shall continue to be responsible for the quality of
business brought by his supervised DSAs.
D) FUNCTIONS OF A CHIEF ORGANISER (LIC DIRECT) :
a) Every CHIEF ORGANISER (LIC DIRECT) shall recommend names of candidates suitable
for appointment as DSAs. These individuals, after passing the necessary prerecruitment test as specified by Insurance Regulatory and Development Authority of
India from time to time, shall be placed under the supervision of the CHIEF ORGANISER
(LIC DIRECT) as Direct Sales Advisors.
b) The CHIEF ORGANISER (LIC DIRECT) shall be responsible for Post Recruitment
mentoring, counseling, and performance of the DSAs supervised by him. He shall also

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be responsible for the quality of business and professional conduct of the DSAs
supervised.
c) Every CHIEF ORGANISER (LIC DIRECT) shall be responsible for activising the supervised
DSAs placed under him/her and shall motivate them to perform satisfactorily.
d) Every CHIEF ORGANISER (LIC DIRECT) shall help the supervised DSAs to perform their
duties as per Agents Rules and IRDAI Rules and Regulations as applicable from time to
time.
e) Every CHIEF ORGANISER (LIC DIRECT) shall be responsible for providing servicing of the
policies procured by him/her in his/her capacity as Direct Sales Executive.
f)

Every CHIEF ORGANISER (LIC DIRECT) shall perform such other duties as may be
entrusted or assigned to him/her by the Corporation from time to time.

E) OTHER CONDITIONS:
a) The CHIEF ORGANISER (LIC DIRECT) shall be required to maintain a minimum of 5 inforce supervised DSAs under him at the end of each review year. However, the
maximum number of DSAs supervised at any time shall not exceed 25 or as approved
from time to time subject to applicable conditions.
b) In case of exit through Resignation, Termination or Death of a CHIEF ORGANISER (LIC
DIRECT), the DSAs supervised by him/her may, at the sole discretion of the Competent
Authority, be either made Direct or allotted to any other CHIEF ORGANISER (LIC
DIRECT) by the Competent Authority.
c) Where a CHIEF ORGANISER (LIC DIRECT) in his/her basic capacity as a Direct Sales
Advisor (DSA) is directed not to solicit or procure New Business under Rule 16(3) of
Agents Rules or if his/her approval for being CHIEF ORGANISER (LIC DIRECT) is
withdrawn or if any penalty is imposed that directly affects his/her being CHIEF
ORGANISER (LIC DIRECT) of the Corporation, in all such cases he/she will cease to be
a CHIEF ORGANISER (LIC DIRECT) till such time he/she is allowed to procure New
business or his/her position as CHIEF ORGANISER (LIC DIRECT) is restored. The DSAs
supervised by him under such circumstances may be treated as Direct or be brought
under the supervision of any other CHIEF ORGANISER (LIC DIRECT) as decided by the
Competent Authority. On reinstatement or restoration as CHIEF ORGANISER (LIC
DIRECT), only those DSAs who have not been allotted shall again be brought back
under his supervision. However, the CHIEF ORGANISER (LIC DIRECT) shall not be
entitled to any benefits for the period he ceased to be a CHIEF ORGANISER (LIC
DIRECT).
d) The allotment of DSAs will be done by the Sr. / Divisional Manager (I/C), and in no
case, a supervised DSA would remain under a CHIEF ORGANISER (LIC DIRECT) for more
than seven agency years. After seven agency years, a supervised DSA will not be
attached to any CHIEF ORGANISER (LIC DIRECT).

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However, before the completion of Seven Agency Years, if the supervised DSA applies
for detachment, the Sr. /Divisional Manager I/C, depending on the merits of the case
and after recording reasons in writing may, at his discretion, detach the supervised
DSA from the CHIEF ORGANISER (LIC DIRECT) and such a detached DSA shall not be
attached to any other CHIEF ORGANISER (LIC DIRECT) again.
e) No allowance or any benefit shall be payable to the CHIEF ORGANISER (LIC DIRECT) for
the Renewal Premium brought in by the DSAs supervised by him.
F) FUNCTIONAL PRIVILEGES:
CHIEF ORGANISER (LIC DIRECT) shall be authorized to submit Moral Hazard Reports (MHR) up
to a Sum Assured as determined from time to time in respect of proposals submitted by
supervised DSAs placed under him.
G) FINANCIAL BENEFITS & INCENTIVES:
a) Activisation allowance
On the supervised DSA becoming active, an amount of Rs.1000/- per supervised DSA
will be paid.
b) Training allowance
To enable the CHIEF ORGANISER (LIC DIRECT) to meet the expenses on continuous
training of supervised DSAs and expenses caused by the business coming from
supervised DSAs, an Allowance For Training at the rate of 10% of the First Year
Commission including Bonus Commission earned by the supervised DSAs shall be
payable to a CHIEF ORGANISER (LIC DIRECT) provided CHIEF ORGANISER (LIC DIRECT)
has brought in a total First Year Premium in the Review Year as per Escalation Clause
as mentioned in Clause (H) of this Scheme, and having maintained at least 5 in-force
Supervised DSAs at the end of the Review Year.
c) Productivity linked allowance
A CHIEF ORGANISER (LIC DIRECT) shall be paid an Amount as per table appended below
if a supervised DSA completes 12 lives with at least Rupees Three lakh of First Year
Premium Income within:
Eligibility criteria for becoming eligible for
productivity linked benefit
3 months from the date of appointment
6 months from the date of appointment
12 months from the date of appointment

Amount of benefit per

supervised DSA
Rs.4000/Rs.3000/Rs.2000/-

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In addition, an amount of Rs. 2000/- per supervised DSA shall be paid if a supervised
DSA continues in the next review year of the CHIEF ORGANISER (LIC DIRECT) and
completes 12 lives with at least Rupees Three lakh of First Year Premium Income
during the review year.
d) Mentorship Allowance:
A Mentorship Allowance at the rate of 10% of the First Year Commission including
Bonus Commission earned by the supervised DSAs shall be payable to a CHIEF
ORGANISER (LIC DIRECT) provided he/she has brought in Total First Year Premium in
the Review Year as per Escalation Clause as mentioned in Clause (H) of this Scheme,
and maintains at least 5 in-force Supervised DSAs at the end of the Review Year.
e) Club Membership Allowance:
A onetime Allowance, as per table appended below, per supervised DSAs shall be paid
to the CHIEF ORGANISER (LIC DIRECT) provided the supervised DSAs becomes a Club
member during the period the supervised DSAs remains attached to the CHIEF
ORGANISER (LIC DIRECT) :
Club membership status of the Amount of allowance per
supervised DSAs
supervised DSAs
Branch Managers Club Member
Rs. 10000
Divisional Managers Club Member
Rs. 20000
Zonal Managers Club Member
Rs. 30000
Chairmans Club Member
Rs. 40000
Corporate Club Member
Rs. 75000
i) 50% of the amount as applicable will be paid every year on such supervised DSA
continuing his club membership.
ii) In case the supervised DSA moves to a higher club the amount specified against the
higher club will be payable to CHIEF ORGANISER (LIC DIRECT).
f) Allowance for MDRT/COT/TOT
An amount, as specified below, per supervised DSA shall be paid to the CHIEF
ORGANISER (LIC DIRECT)every time such DSA qualifies as a Member of the Million
Dollar Round Table (MDRT)/Court Of The table (COT)/Top Of The Table (TOT), on
Commission basis only during the period the supervised DSA remains attached to CHIEF
ORGANISER (LIC DIRECT) :
Eligibility criteria
MDRT
COT
TOT

Amount paid per supervised DSA

Rs. 10000
Rs. 30000
Rs. 60000

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g) Servicing Allowance
The CHIEF ORGANISER (LIC DIRECT) will be paid servicing allowance at the same rate
as Renewal Commission paid to the Conventional Agents for the policies procured by
him /her in the capacity as DSE/SSE till the time he/she is working for the channel.

H) ESCALATION CLAUSE:
The CHIEF ORGANISER (LIC DIRECT) shall be required to bring in a minimum Total First
Year Premium of Rs 12,00,000/- from his supervised DSAs taken together during the first
Review Year falling in Financial Year 2016-2017. Thereafter, the amount will be as
decided from time to time by the Corporation. If the CHIEF ORGANISER (LIC DIRECT) fails
to achieve the prescribed First Year premium in a review year, no allowance except
Activisation allowance shall be payable for that year.
I) INSTRUCTIONS AND INTERPRETATION:
1. Any matter connected with the Scheme shall be regulated by administrative
Instructions/directions issued by the Chairman from time to time.
2. Where a doubt arises as to the interpretation of any of the provisions of this
Scheme, the matter shall be referred to the Central Office for its consideration and
the decision of the Chairman shall be final and binding on the CHIEF ORGANISER
(LIC DIRECT).
***********

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