You are on page 1of 27

GOIB Scheme 2011

For details, please refer to circulars.

Eligibility

Cost Ratio 16%

Cost ratio calculated on eligible premium


2

BASIC INCENTIVE BONUS


The excess of Qualifying
Premium over the annual
remuneration paid

% of such excess

6 times

12.55 % +

7 .50 times

0.60% +

10 times

0.60% +

11 times

0.30 % +

12 times

0.25% +

15 times

0.30%

.
3

Example:
Annual Remuneration: 600000, Eligible Premium: 12500000
Cost Ratio: 4.80% ,
Qualifying Premium: 11500000
Slab

Premium Amount

Rate

BIB

Excess of 6 times

7900000

12.55%

991450

Excess of 7.50 times

7000000

0.60%

42000

Excess of 10 times

5500000

0.60%

33000

Excess of 11 times

4900000

0.30%

14700

Excess of 12 times

4300000

0.25%

10750

Excess of 15 times

2500000

0.30%

7500

14.60%

1099400

Total

Modifying the Quantum of BIB

Modification in BIB
Addition /
Subtraction to BIB
> +30%

# of Dev. Offices

% of DOs in the
Group

43

+20% to 30%

246

+10% to 20%

541

0% to +10%

378

-10 % to 0%

109

-20% to -10%

44

-30% to -20%

14

< -30%

31
Source: CADW

86%

14%

How to earn Incentive


on Incentive
10 Tips
8

Growth in Eligible Premium


Conditions

Additional Incentive

(i) Cost ratio :


up to 8%
(ii) Growth in eligible premium : +15%
(iii) Minimum Eligible premium: 25 Lacs

Additional 2 % of BIB for


every 5% increase over 15%
growth in eligible premium

(i) Cost ratio :


more than 8%
(ii) Growth in eligible premium : +20%
(iii) Minimum Eligible premium: 25 Lacs

Additional 2 % of BIB for


every 5% increase over 20%
growth in eligible premium

Maximum Rs. 1,00,000

Growth is the purpose of Life.


9

Performing Development Officers


Basic Conditions Cost Ratio*

Additional
Incentive

(i) Minimum service


11 years at the
beginning of AY,

Up to 2%

4% of BIB

More than 2% & up to 4%

3% of BIB

More than 4% & up to 6%

2% of BIB

(ii) Minimum 50 agents


at the end of AY
More than 6% & up to 7%

1% of BIB

and

More than 7% & up to 8%

0.5% of BIB

Cost ratio calculated on qualifying premium

Increase your SFYPI and check marginal cases


before appraisal end date.

10

Number of Lives assured


Basic Conditions Amount of BIB

Additional Incentive

(i) Minimum live- 700


and
(ii) Minimum
Productive Agents15

BIB up to Rs. 50,000

1% of BIB

More than Rs. 50,000 and


up to Rs. 2,00,000

Rs. 500 + 0.66% BIB in


excess of Rs. 50000

More than Rs. 2,00,000

Rs. 1490 + 0.5% of BIB in


excess of Rs. 200000

(For block of every 30


lives in excess of 700)

Maximum : Rs. 25,000

Increase number of sales.


11

Example:

12

Number of Productive Agents


Basic Conditions

Additional Incentive

Minimum Productive Agents- 18

An addition @ 2.50% of BIB for every


Productive agent over 18
(Maximum : Rs. 20,000)

+
New agent appointed in the AY
qualifies as DEEMED PRODUCTIVE

Rs. 1200 for each Deemed Productive


agent

Incentive for Managing Agency Organization

Productive Agent: (i) 20 lives during agency year ending in AY*

Increase productivity of new agents.


13

Managing Agency Organisation


Basic Condition: Minimum 50 agents at the end of AY
No. of agents at
the end of AY

% of Productive
Agents

Amount per Prod.


Agent

100 and above

75%

Rs. 400

100 and above

60%

Rs. 300

100 and above

50%

Rs. 200

100 and above

40%

Rs. 150

75 to 99

50%

Rs. 100

50 to 74

50%

Rs. 75

Increase productivity of agents.


14

Recruitment of Agents
Basic Conditions

Additional Incentive

50 or more agents at the beginning of


AY

Rs. 2000 for recruitment of every 5


agents

Less than 50 agents at the beginning


of AY

Rs. 2000 for recruitment of every 8


agents
(Maximum : Rs. 12,000)

+
(i) 40 or more agents at the
beginning of AY, and
(ii) Growth of 10% or more in net
addition of agents.

Rs. 2000 for each 10% net addition


(Maximum: Rs. 6000)

Build your team


15

Persistency of Agents
Organization of
agents

Persistency %

Additional
Incentive

100 & above

90%

Rs. 200 per agent

75 up to 99

90%

Rs. 150 per agent

50 up to 74

95%

Rs. 100 per agent

45 up to 49

95%

Rs 50 per agent

Persistency definition:

Percentage of agents continuing in the organisation of DO at the


end of AY, out of the agents existing in the organisation of the DO at the end of immediately
preceding AY.

Maintain your team


16

MDRT/COT/TOT/Corp. Club
Category Condition

Add. Incentive

Satakveer

Completes 100 lives during AY

Rs. 1000 per agent

MDRT

Qualifies for MDRT in first 4 year of


recruitment

Rs. 3000 per agent

Corp. Club

Acquires membership of Corp. Club

Rs. 5000 per agent

COT

Qualifies for COT any time

Rs. 7500 per agent

TOT

Qualifies for TOT any time

Rs. 10000 per agent

Notes: (i) Only one incentive for MDRT/Corp. Club/COT/TOT is payable. On acquiring higher
membership, difference in incentive is payable.
(ii) Incentive for Satakveer agent will be in addition to incentive for MDRT/ Corp.Club/ COT/TOT.
(iii) Maximum add. Incentive Rs. 40000

Develop your team


17

Eligible Premium under specified plans


Qualifying
Condition
10 % of eligible premium
of previous AY
OR
Rs. 10,00,000 eligible
premium

Condition for AIB

Add. Incentive

2% increase or part
thereof over 10%

0.5% increase in BIB


for every block

Whichever is lower.
Maximum Rs. 25,000
Specified Plans: ULIP, Health plan and plans introduced after 01.09.2011

Train your agents for new plans.


18

Rural Credit
Qualifying Condition

50% of agency organization


at the beginning of the AY
consists of rural agents
and/or agents working only
in a hill station

Add. Incentive

10 % of BIB

Maximum Rs. 1,50,000

Dev. Officers working in semi urban areas recruit


agents in rural areas.

19

10 Points
1. Growth in eligible premium: 15%+ or 20%+
2. Cost ratio less than 8% (Performing DOs and service
>11 years)
3. Number of lives: more than 700
4. Productive agents: at least 40% or 50% subject to
minimum 18+
5. Qualify New agents as Deemed Productive
6. Recruitment at least 5+ or 8+
7. Persistency of agents at least 90% or 95%
8. MDRT/COT/TOT/Corporate Club
9. Premium under specified plan 10% or 10 lacs
10. Appointment of agents in rural areas.
20

How to Save
earned Incentive
5 Benchmarks
21

Growth in Eligible Premium


Cost Ratio

Up to 3%

Minimum
benchmark

NIL

Decrease in BIB on
failure to achieve
minimum benchmark
NIL

More than 3% but up to


8%

10% growth in
eligible premium

2% of BIB for each block of


5% or portion thereof.

More than 8%

15% growth in
eligible premium

2% of BIB for each block of


5% or portion thereof.

Benchmark 1: Minimum growth in eligible premium


10% or 15%.

22

Number of Lives assured


Number of Lives

Decrease in BIB

Less than 550

10% of BIB

Between 550 to 599

4% of BIB

Benchmark 2: Minimum lives 600


23

Number of Productive Agents


Number of Productive
Agents
15

Decrease in BIB

NIL

13 or 14

2% of BIB

8 to 12

5% of BIB

7 or less

10% of BIB

Maximum reduction in BIB for benchmark 1 to 3 24% of BIB

Benchmark 3: Minimum Productive agents 15


24

Recruitment of Agents
Number of Agents in the
beginning of AY

Minimum
benchmark

Decrease in BIB on
failure in achieving
benchmark

Less than 40 in 1st year of


scheme
Less than 45 in 2nd & sub.
year of scheme

Recruitment of 5
agents

0.5% of BIB (Min. Rs


1000 and Max. Rs
5000 per agent)

OR
39 in 1st year of scheme
44 in 2nd & sub. year of
scheme

Net addition of 1
agent

0.5% of BIB (Min. Rs


1000 and Max. Rs
5000 per agent)

Benchmark 4: Ensure minimum number of agents


45

25

Eligible premium under specified plan


Eligible premium from specified
plans
At least 5% of eligible premium of
previous AY
Less than 5% of eligible premium of
previous AY

Reduction in BIB

NIL

For every 1% shortfall or part


thereof: 2% reduction in BIB
Maximum Rs. 10,000

Benchmark 5: Ensure minimum 5% of eligible premium of


previous AY from specified plan.

26

5 Benchmarks
1. Growth in eligible premium

10% OR 15%

2. Number of Lives

600

3. Number of Productive Agents

15

4. Number of agents

45

5. Eligible Premium from


specified plans

5% of previous AY
27

THANK YOU