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Utkarsh

News Bulletin of CO Marketing dept., September 2009
(For Private Circulation Only)

Greetings from the Central Office Marketing Dept. On the glorious occasion of the 53rd
Insurance Week, let us celebrate our achievements and gear up for a brighter future.

LIC Market Share in July 2009:
In July 2009, our Market Share on FPI count,
increased remarkably by 2.41% from 62.45%
to 64.86%. On NOP count it has decreased
slightly by -0.10% from 69.88% to 69.78%.
Our Market Share in FPI has increased for
four months in continuity. Recently, three
Competitions (namely ‘Chandrayaan-II’ in
July-09 and ‘Saral Swarnim Suraksha’ & ‘AAA’
in August-09) have been launched for the field
force. Let us make the best use of these
competitions to continue our impressive gains
in respect of FPI and NOP both.

LIC Vs. Industry Growth Rate in 07/2009:
Growth Rate

FPI Count

LIC

32.13%

14.86%

-17.59%

-2.06%

9.01%

9.16%

Pvt. Insurers
Industry

NOP Count

Our Performance in August, 2009:

Grand Achievement of Neyvely B.O.:
Our congratulations to Team Neyvely B.O.
and Vellore D.O. Neyvely became the First
Branch to achieve NOP target in F.Y. 200910 by completing 16830 policies on 24.08.09
against NOP budget of 16,000 policies.
We look forward to having many more such
Achievers by the time of release of next
Issue of ‘Utkarsh’.

‘Saral Swarnim Suraksha’- a N.B.
Competition for DOs & Agents:
This N.B. Competition for Development Officers
and Agents has been launched to encourage
them to cover good no. of lives consistently with
higher premium in short duration. The policies
sold under New Janraksha, Jeevan Saral, and
New Bima Gold plans and having SA 1 Lac or
more will be considered for this competition.
The Competition period is from 1st August, 2009
to 31st January 2010. All Branch Officials are
requested to bring this to notice of all
Development Officers & Agents.
(Refer Circular Ref.:Mktg/ZD/18/2009 dated 08.08.2009 and
Circular Ref.:Mktg/ZD/21/2009 dated 25.08.2009 for details)

In August 2009, the Corporation registered
Triple A Competition - ‘Arise, Awake &
growth of 13.19% at FPI count and 19.25% on
Achieve’- for CLIA & Dy / Managers(CLIA):
NOP count. The FPI Growth rate increased a
The CLIA dept. has floated a New Business
bit but is still far below the budgeted growth.
competition for CLIAs and Deputy / Managers
period is from 1st
Top 2 Zones & Divisions on Growth Rate: (CLIA). The Competition
st
August, 2009 to 31 October 2009. All Branch
Particulars FPI Count
NOP Count
Officials are requested to bring this to notice of
all Chief Life Insurance Advisors.
WZO,
NZO,
Topper
(Refer CLIA dept. Circulars dated 31.7.09 for details)
Zone
24.97%
31.08%
Changes in Recruitment of RCAs by DOs:
NCZO,
Runner Up NZO,
To provide stimulus for agents’ recruitment, the
Zone
21.25%
26.95%
rules have been relaxed. Now while calculating
Delhi-I,
Srinagar
Topper
the limit of four RCAs under a Development
Division
Officers, only those agents who are recruited
70.84%
61.17%
under RCA Scheme and are within the
Udupi,
Runner up Mumbai-I,
stipendiary period i.e. 2 years of his / her
Division
66.85%
58.15%
agency, will be taken into account.
*Bold indicates continuation of / improvement in position.

(Refer Circular Ref.:Mktg/ZD/22/09 dated 27.8.09 for details)

(NCZ) 5. K. Smt. has announced the 9. Sinha.2009 for details) rd 3 Mandi BO. Smt.) No.82 7.90 5. Manisha (NZ) 4. Shri Vipin Gupta (NZ) 4. been modified with immediate effect.2009. Shri Harish Gupta (NZ) 5.) No. a new Option of Reimbursement up Sr. Name FPI to Rs. conserving Top 3 Branches on Growth Rate Basis: the already created agency force. (NCZ) 4. Bhalerao. 167 Neyvely. (NZ) level of performance.98%.08.2009 & 13. Ms. by 5. (NZ) 2.9. Goenka (WZ) 2. 2009 With multiple objectives of arresting high incidence of termination of agents.24% (SZ) and Reappointment of Terminated Agents: With the objective of conservation of agency Top Ten Development Officers(FPI Count): force. these two plans provide optimum combination of affordable risk coverage and diversified asset allocation to our policy holders. (NZ) 4.2009 for details) *Names displayed in ‘Bold’ indicate continuation of the position or upward movement in the respective Merit List. R.64 10.57 8. 4.D. 167 2 revised.000/. Shah (WZ) 4. a Unit linked plan are Products of the Month for September-2009. 352. (NZ) 440. site for details) 6. . Shri P.88 Instructions regarding On-line pre recruitment test training through LIC’s own VIDYANET server and Process flow for the online prerecruitment test of prospective agents have been announced. (NZ) 3. 15 B facilitate existing Direct Agents to reach higher 438.K. 2008-09). the existing rules for reinstatement and Sr. (NZ) 6. Shri Sanjay Garg. a traditional plan and Profit Plus.43%.09. Shri S. Smt.K. (SCZ) 3. Mandi BO. Shri G. (NZ) 6.37 Options for CM’s Club Members (M. Shri MRC Rao. Shri H.80 utilities has been provided. Singh.12.12 Apart from three existing Options. reimbursement may be claimed on 3.08. 2. Ragini. to support Rank FPI Count NOP Count Probationary Development Officers and to st 1 Nurpur.91 4.Y.Jeevan Saral and Profit Plus: Jeevan Saral. (NZ) 4.09 with spouse.P Shetty (WZ) 4. (Refer Circular Ref: CO/Mktg/ZD/26/2009 dated 04.V. 15 B Nurpur. Joshi (NZ) 4. purchasing certain business promotion articles / 1.2009 for details) 1. Ms. 71E Modifications in Rules of Reinstatement 249. 10.00 The Zonal Offices are requested to provide the ‘Options’ data to CO Marketing dept. Pal. Together.Rules on Allotment of Agents to DOs: Merit Lists as on 31st July. the Rules on allotment of nd Agents to Development Officers have been New Friends Colony.33%.12 Agents’ PRT: Online Training & Process Flow: 7. Crs. Mathur (WZ) 5. R. namely attending Convention.8. Shri H.02 the basis of declaration subject to tax deduction.09 on CO Mktg.38 Exercise of Option by CM’s Club Members: The CO Marketing Dept. Visiting a place of choice Top Ten Agents (FPI Count): with spouse and Attending a Training Programme.58%.for holding Customers’ Meet and (In Rs.:Mktg/ZD/19/2009 dated 10.63 (Refer CO FPT Circulars dated 06.97 3. (Refer Circular Letter dated 17. Pradeep (SZ) 4.R.89 Products of the Month for September 2009 .V.24 08. Shri H.67 9.K. Crs. 8.08. Shri K. (NZ) 266. Shri Govind Gupta. Shri S. A. in the option of visiting a place of choice 2. Gupta. (NZ) 246. Aggarwal (NZ) 2.95 6. Paulson (NZ) 2. Name FPI reappointment of the terminated agents have (In Rs.91%. (NZ) (Refer Circular Ref. Shri R. Ms. Now. dept.

0.10 1991-92 18. The changes are as following: Agents’ MBG. ♦ The 1 Lac FYP condition is much lower than the average FYP performance of agents for many last F.07.23 367020.) 1971-72 11.27.50. Rule 9 (1) & (2): In first three Agency Years.B. in these F.B.A.67 policies and Min. FYP would grow to Rs. Since.f.) Average FPI (Rs. ♦ The customers preference for ULIP policies and Term Plans have made concept of Sum Assured irrelevant.89. shortfall on any one count shall be condoned up to a maximum of 50%.397 1. . have been changed w.95 Lacs).44 86169. 2 and 3 Agency Years.07 Lacs in respect of S.7000/for S.67 92268. after a period of 37 years.).000 2007-08 3. an Agent will have to complete policies on minimum 12 different lives and bring at least 1 lac First Year Premium Income.4. then this eternal truth has been rephrased again and again so many times.95.e. Total No.92 Lacs to 23.40.18 2001-02 23249651 192572.67 Lacs in respect of FPI. new MBG condition is quite liberal. of Agents in these F. has grown at CAGR of 9. 2003-04 1. In fourth and subsequent Agency Years. an Agent will have to complete policies on minimum 12 different lives and bring at least 1 lac First Year Premium Income.535 2.A.(Crs) FPI (Lac) 1971-72 1895875 1498.77 The MBG provisions.1.92 Lacs S.A. 1981-82 16.76 187389.07 2007-08 37589995 275457.000 Clearly. (Rs. of Agents at F.07.71 8182. The Condonation will not be applicable from fourth Agency Year onwards.A. ♦ It may be observed that the earlier MBG. which were introduced in 1972. 11.31 1484332.54 3.Ys.A.) said that nothing endures but change.65 4381285.A. of Policies.69 17597.Amendments to Agents’ MBG: Around 2500 years ago.000 2005-06 1.000 2004-05 1. of Lives condition has not been changed and is same i.000 2006-07 3. Average S.020 4. against Avg.48 in NOP.48 2307510. I Lac.10% in last 37 years. 12 lives against Avg. Per Agent Average N.86 654830. rd Condonation: However.88 N. from 0. 1 Lac S.A.92 10194 1991-92 9238264 32064.: Year Average No.C.88 279231.2009 i. 1981-82 2103134 3478. and from less than 0. 2.48.Y. 12 Lives. 25 Lacs under Plan 190 may have yearly premium as low as Rs. per Agent average productivity has risen from 11.A.120 5. if it is compensated with same or higher percentage on the other count and the agent completes at least six different lives and FYP Income of Rs. ♦ The S. Assuming Average FYP Rs.75 2001-02 29.-end 1971-72 162357 1981-82 124589 1991-92 489660 2001-02 792112 2007-08 1193744 ♦ The change in agents’ performance from 1971-72 to 2007-08 is phenomenal and thus the change in MBG decided in 1972 is inevitable. Heraclitus (540 B. at the end of 3 Agency Year.Y. in certain Representative F.203 1. How LIC Agents have progressed since 1972: Below-mentioned figures speak for themselves: 1.A.Ys.e. A policy having S.16 2007-08 31.C.43.67.6000/-. introduced in 1972 was higher than the then average performance (Min. 09. These facts are evident from following data: Year Average Per Agent First Premium (FP) Year Premium (FYP) ♦ It is observed that from data that since 1972.e. Total N. ♦ The No.000/st nd rd in each of 1 .67 to 31.75 Lacs (The actual FYP figure is Rs.35 2431124.05 N.A.Y.66.52. – 480 B.: Year Total No.: Year Policies S. The First Year Premium includes First Premium and First Year Renewal Premium (FYP= FP + FYRP) and is generally higher than First Premium.08 Lacs to 3.

72. Lacs. (NZ) 1. Shri Prabhudas (SCZ) 54.44 1 Shri H.a.com & nm. For FUP updation related queries: Mail to bo_cbk1@licindia. opening up of Insurance sector and overall economic scenario (which have contributed to rise in agents’ performance to a large extent) had made the earlier MBG irrelevant. Total collection by SBAs so far is Rs. No.S. Shri P. The Fund Management Charges should not exceed 1.B. Shri Hitesh M. [Printed & Published by Narendra M. Non-single Premium).-09. This will apply to all (existing as well as new ULIP plans.75 L.S.10 Crs. IRDA has prescribed a limit on all ULIP related charges. P.-09 & Oct. it should not exceed 2. Ms.) 1. 2009. The Top Three SBAs: Name Collection Update on MDRT-2010: 1.59 (NZ) SBA related queries – Whom to contact: 1. Mumbai – 400 021. ♦ The external environmental factors such as inflation.2009.com] .K. Ragini. CZ 142 81 46 EZ 306 181 118 ECZ 154 79 44 NZ 703 423 268 NCZ 251 141 89 SZ 318 185 110 SCZ 319 188 115 WZ 1695 1051 715 Total 3888 2329 1505 The FYC Earning Targets for Sept.80/. Update on SBA Scheme: As on 31.p. Shri Bharat V. or Rs. the commission amount would be 15. Shah 2 Shri Davinder Kala.2009: Type Pre.19953. Shri Samir D.888 agents should qualify MDRT latest by Nov.ojha@licindia. Saji. their earning should be reasonably good enough to match current economic environment.56 10.com or call 022-67819479. Refer to CO Mktg. Gupta. Mehta (WZ) 61. ratio of Traditional vs. IRDA has put cap on ULIP Charges: st From 1 October. and published at ‘Yogakshema’.90 9. 3 Shri Jaswant Rai 1.m. 6. Shri R. Ojha for and on behalf of LIC of India. site for details. Name FYC* (Rs. actual rate will depend upon agent’s business mix i. Our goal is to ensure that all these 3. successful and prosperous.05 Crs. dept. Basis Comm.08.35%. Parikh (WZ) 77. LTD. Shri Sunil S.23 7.1250/. The revised MBG will contribute to our agents becoming professionals. Shetty (WZ) 46.83 3.59 Crores.-09 are 5. Even the minimum guaranteed NRGES wage is Rs.5 L.30 8. (SCZ) 99. Parekh (WZ) 89.000/p. For all other queries: Call 022-67090501 /02 or Mail to dev_support@licindia. Jeevan Bima Marg. ULIP and Single Premium vs.82 83. Sohoni (WZ) 70. As against the FYC Earning targets decided in CMC.72 *FYC Excluding Bonus Commission Another reason to perform and celebrate: the All India Ace Competitions for Agents and Development Officers have also been announced. MDRT Qualifiers as on 31. 5. (NZ) 2.08. Please mail achievements pertaining to Mktg. If we want our agents to take agency career seriously. 4. Basis TOT 7 8 COT 33 24 MDRT 510 359 (Inclusive of Qualifiers on Both counts) 3. the no.♦ At 15% average commission rate (a presumed rate only. 486 Development Officers have enrolled in SBA Scheme and 370 of them have become active. For ULIPs having term less than or equal to 10 years./Field force and feedback/suggestions to co_marketing@licindia. dept. No. of prospective Agents at various thresholds are as following: Zone >= 3 Lacs >=3. >=4. rising per capita income. MDRT 2009 – The Top Ten Achievers: Sr.50 Lacs and 6. the difference between the gross and net yield should not exceed 3% and for term more than 10 years.com. (WZ) (NZ) 79.45 Crs.25%.e. (WZ) 134. Shri K. Shri Ravi Jethani. 2.per day.printed at Max Print SYSTEM (BOM) PVT.30 2.50 Lacs respectively. 2.