1. The taxable tip shall result from the taking into account of the renewal fee, which was earned during the reference years only from 15 years of agency immediately before the age of 60 or 65. To stop the high turnover and encourage them to do more business, the national insurer Life Insurance Corporation of India (LIC) has increased the tip to Rs 3 lakh for its more than one million agents. The company derives up to 94% of its premium income through its more than 1.1 million agents, while the private sector translates about half of its business through the agency. In the last fiscal year, the company hired 245,000 agents, but up to 340,000 agents were laid off or voluntarily left during the fiscal year. In March 2016, LIC had 1.06 million agents, up from 1.10 million at the end of January. But so far this year, LIC has added 45,000 agents on a net basis. “So far in the year, we have hired 270,000 agents, while 225,000 have been laid off or left the company voluntarily, representing a net increase of 45,000. This brings our overall strength of the agency to 1.105 million at the end of January,” a LIC official told PTI. “Tips payable to an agent will be the eligible rate for each qualifying year for the first 15 years of qualification and half the eligible rate for the following 10 years of qualification, provided that the maximum bonus amount payable does not exceed Rs3 lakh,” the Gazette of India said in a statement. In an effort to stop high turnover rates and encourage them to do more business, national insurer Life Insurance Corporation has increased the tip to Rs 3 lakh for its more than one million agents.
The year of the Agency in which a staff member concluded the transactions required by him under Article 9 of the Agents` Regulation. Officers who have elected to be exempt from MBG will not be treated as an eligible year. In the last fiscal year, the company hired 2.45 lakh agents, but up to 3.40 lakh agents were fired or hired voluntarily during the year. As of March 2016, the company had 10.60 lakh agents, while this figure rose to 11.05 lakh at the end of January. Under the existing rules, a LIC agent will receive Rs 1 lakh as a tip if he leaves the service after 15 years. On average, an agent receives a commission of 35% on premiums sold and 2% on single-premium policies. But so far this year, the company has added 45,000 agents on a net basis. Under the existing rules, a LIC agent receives Rs1 lakh as a tip if he leaves the service after 15 years. On average, an agent receives a commission of 35% on premiums sold and 2% on single-premium policies. Currently, in the case of a representative who worked for 15 years or more at the time, the grant represents the 180th portion of the total renewal fee earned by an agent, the note says. In the case of a representative who has worked as an agent for less than 15 years at the relevant time, it will be one-twelfth of the amount resulting from dividing the global renewal fee of the qualifying years by the total number of agency years, he added. LIC derives 94% of its turnover from the agency channel, but also sells online and via banassurance channels.
At the end of January, total premium income stood at Rs 29,000, up 76% from Rs 16,460 crore a year ago. It has set a target of increasing premium income by Rs 31,000 crore by March 4. Given the current growth rate, the maximum tip can increase to Rs 10,00,000. For this, the average renewal fee for each of the last 15 years of qualification should be Rs 8,00,000 or Rs 6,00,000, i.e. a bonus of Rs 1,60,00,000 or Rs 1,20,00,000 in force for the last 15 years prior to the age of 60/65. Currently, a LIC agent receives Rs1 lakh as a tip upon leaving the service after 15 years The date on which eligibility for tipping payment is determined. 3. The authorised premium shall be the eligible rate for each eligible year for the first 15 reference years and half the rate for the following 10 eligible years. The maximum tip cannot exceed Rs 300000. 6. Once a salary premium is paid, no further benefits are due, even if the Agency continues to exist.
3. If a person chose to be exempt from MBG at age 45 and has not completed MBG within the next 15 years, they will not receive a tip because the allowable rate is zero. Therefore, do not decide to be exempt from MBG until you have received a tip. Currently, in the case of an agent who has worked for 15 years or more on the relevant date, tipping means 180th portion of the total renewal commission earned by an agent, the note says. The company generates up to 94% of its premium income through its more than 1.1 million agents, while the private sector carries out about half of its business through the branch channel. 7. Once a tip has been paid to a dismissed agent, the new agency may also be granted, but the bonus will not be paid again. (Cir: Mktg/ZD/18/2012 of 06.03.2012). (2) A representative may, before reaching the 59th birthday. by written notification to the Head of Division, request that entitlement to a bonus be determined after reaching the age of 65. 3.
Relevant date for calculating the tip: 01/07/2017 (i.e. the agency ends before the age of 60) It is financially rewarding and also satisfying for the soul. The commodity that a life insurance agent sells is unique – you are selling and maintaining financial security and, therefore, the compensation model for the same is also unique.
