Professional Documents
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a. 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.
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.
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Example 1: Date of appointment of agent 09.07.2009 and onwards: The amended
Minimum Business guarantee shall be applicable to him from his First agency year i.e
with immediate effect. Kindly refer Annexure 1 to calculate the minimum business
required to be brought in by the agent as at the end of third agency year.
Example 2: For agents who have been appointed before 09.07.2009 but have not
completed one agency year prior to date of notification i.e agents appointed
between 02.07.2008 and 08.07.2009 : The amended Minimum Business guarantee shall
be applicable to him from his second agency year. For example an agent having Date of
appointment as 15.06.2009. The first agency year of this agent will end on 30.06.2010 as
shown below:
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Third 01.07.2011 to 30.06.2012 At least 6 Lives and Rs. fifty
thousand First Year Premium
Income and provided that at the
end of the third agency year he
should have brought in at least 24
lives with First Year Premium
Income of Rs. 2 Lacs in his second
and third agency years taken
together. 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 his 3rd Agency year provided that
it is compensated with same or
higher percentage increase on the
other count. For example an agent
brings in 36 lives in his second and
third agency years taken together,
then a shortfall in First Year
premium Income can be condoned
upto Rs. One Lac provided he
brings in at least 6 lives with First
Year Premium Income of at least
Rs. Fifty Thousand in each of his
second and third agency year
Kindly refer Annexure 2 in such cases to calculate the minimum business required
to be brought in by the agent as at the end of third agency year.
Example 3: For agents who have completed one agency year prior to date of
notification i.e. agents appointed between 02.07.2007 and 01.07.2008 Date of
appointment of agent: 15.06.2008. His first agency year will end on 30.06.2009.
Kindly refer Annexure 3 in such cases to calculate the minimum business required
to be brought in by the agent as at the end of third agency year.
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Example 4: For agents who have completed two agency years prior to date of
notification i.e. agents appointed between 02.07.2006 and 01.07.2007
For Example, the Date of appointment of agent is 15.06.2007.
Agency Year Duration Minimum Business to be
secured by the agent
First 15.06.2007 to 30.06.2008 An agent, other than an
absorbed agent,
shall bring in the
following business in
his first agency year:
(a) if he is working in a
City, Urban
agglomeration or
Town with an
ascertained
population of 5 lakhs
or above- proposals
resulting in policies
for not less than Rs.
75,000 sum assured
on at least twelve
different lives; or
(b) if he is working in a
City, Urban
agglomeration or
town with an
ascertained
population of one
lakh or above, but
less than 5 lakhs-
proposals resulting in
policies for not less
than Rs. 60,000 sum
assured on at least
twelve different lives ;
or
(c) if he is working in any
other place with an
ascertained
population of less
than one lakh-
proposals resulting in
policies for not less
than Rs. 40,000 sum
assured on at least
twelve different lives.
In the above example since his third agency year has already commenced as on date of
notification, the agent will have to fulfill the minimum business criteria as per old rules.
However, for such agents the revised Minimum business to be secured by the agents i.e
12 lives with a First Year Premium Income of Rs. One Lac shall be effective from their
fourth agency year onwards.
Example 5 : For agents who have completed more than three agency years prior to
date of notification i.e. appointed on or before 01.07.2006.
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For example the date of appointment of agent is 15.06.2000. His current agency
year will be 01.07.2009 to 30.06.2010. The amended rules shall be applicable to him from
his agency year commencing from 01.07.2010 to 30.06.2010.
In the schedules of the said rules, for the words “ clauses” and sub-clauses”
wherever they occur, the words “paragraphs” and sub-paragraphs” shall be substituted.
“4. Notwithstanding anything contained in sub-rules 2 & 3, an agent who has been
exempted under sub rule (4) of rule 9, shall be entitled to bonus commission, if he has
to his credit at the time of such exemption 15 qualifying years as defined in Schedule
VI”.
“2. An agent including an absorbed agent shall be entitled to bonus commission at the rate
of 40% of the eligible First Year commission if he has secured not less than six proposals
on different lives resulting in a completed business and a First Year premium Income of at
least Rs. Fifty thousand in the respective Agency year”.
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ANNEXURE – 1
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ANNEXURE – 2
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ANNEXURE – 3
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