The concept of Agents” Club membership has been introduced in L.I.C. Of India in the year 1971, and the club membership rules were framed in May 1971

The purpose of introduction of this type of club membership to Agents ,was to give them different status and some monetary and other benefits so that there will be growth in their business performance every year. Accordingly some rules were also made for acquisition / continuation of club membership, and for acquiring membership of a higher club.
The conditions for acquiring and continuing club membership are formed under the two different categories.

Condition “ A ” Condition “ B ”

Net S.A. / Net No of lives Renewal Commission Paid
F.Y. Commission Paid
Number of lives in force

Entry / continuation
condition Chairman’s
Club Zonal Manager’s
Club Divisional Manager’s
Club Branch Manager’s
Entry under condition A
Net Sum assured( Rs. In
Net No. of Lives.
Entry under Condition B
Renewal commission Paid
F. Y. Commission Paid Rs.
No. of Lives in force

Continuation under Condition B
Net Sum Assured (Rs. In lacs)
Net No. of Lives
Continuation under Condition B
Renewal Commission Paid Rs.
F. Y. Commission Paid Rs.
No. of Lives in force


The conditions for Entry and Continuation will be as follows:

1.) Entry under condition A : The criteria is to be fulfilled in the Qualifying Year and 3 out of f. Y. preceding the Qualifying Year.
2.) Entry under condition B : The criteria is to be fulfilled in the Qualifying Year and 2 Financial Years preceding the Q. Year.
3.) Continuation under Condition A or B :The respective criteria is to be fulfilled in 3 out of 4 Financial Years preceding the Membership Year.

There are however, some Relaxation in fulfillment of qualifying criteria:
After completing the age of 60 years as on the date of commencement of club membership year and continuous member of the same club for not less the 15 membership years can continue the membership of the same club under the same condition A or B by fulfilling at least 75 % of the criteria applicable for that condition.

Credit for revived policies.:
An agent who has revived the policies in respect of business completed by him during the preceding financial year can ask for the credit for Net S .A. and No. of Lives provided the revived policies are in force as on31st March of the qualifying financial year, after submitting the necessary details. The Br. office will then confirm the particulars and arrange for the credit if the agent is falling short of the required norms.

Number of Lives in Force:
“ Number of lives in force” are the number of lives in force at the end of each relevant year out of the total business completed by the agent from the inception of the agency to the end of each such financial year. The same life if it takes more than one insurance in the same financial year will be counted as one life only.

Continuation of club Membership in the year/s of failure:

If an agent does not fulfill the condition of minimum net sum assured prescribed in the financial year reckoned to allow an agent to continue in any of the clubs, the club membership will be treated as continued for the number of years for which he has not fulfilled the condition of net sum assured as per the table given below:

No of years of continuous membership in the same club Relaxation allowed
05 One occasion
10 Two occasions

Interview for Club Membership:

Mere fulfillment of criteria for entry to any club does not confirm upon an agent the club membership unless he has been interviewed and found suitable for admission to a club by the competent Authority.


Every agent who has been admitted as a member of any club and/or whose membership is continued will be required to under go training at ZTC/STC/IFSERT/JEEVAN VIDYA TRUST or at any other institution approved from time to time.

Fringe Benefits:
The following type of fringe benefits depending upon different clubs are available to the agents.
1) Office Allowance
2) Sales Promotional Gift Items
3) Supply of Letter Heads/Envelopes/Visiting Cards
4) Telephone facility
5) Convention for C Ms & Z. M.'s club Member Agents
6) Traveling Expenses for attending Club Members Convention

Lapsation of Policies:
A Chairman's/ZM's / DM's club Member agent will be eligible for Additional Office Allowance at the following rated in the percentage of lapsation of policies is 10% or less in each of the last 3 financial years preceding the qualifying year at the following rates:

Percentage of Lapsation Additional Office Allowance %
10 or less 5
9 or less 8
8 or less 10
7 or less 12
6 or less 15
5 or less 18
4 or less 20
3 or less 22
2 or less 25
1 or less 28
Zero 30

Cases where lapsation of policies secured by an agent is more than 15% are to dealt with as follows:
a) For Existing Club Members
1) Where lapsation is > 15% ( no rounding off) for one year, there will not be
any disincentive
2) If the lapsation continues t be more than 15% for two consecutive years,
the agent will not be eligible to attend the Club Convention
3) If the lapsation continues to be over 15% for three consecutive years, the
agent will neithe be eligible for attending the convention nor for the Office
Allowance ( Stationery allowance incase of BM's club member agent) for
that particular membership year.
4) If the lapsation is over 15% for four consecutive years, the will loose his
membership of the club
5) If the lapsation of policies is greater than 15% even for one year then agent
will be kept under watch and no fresh advance for fast conveyance or
housing loan will be given till the lapse ratio remains greater than 15%
b) for agents who are aspiring to become club member:

The agents who have already qualified for club membership for i\one year or more as per the old club rules, lapsation clause will not apply to these years .Lapsation clause will apply only from qualifying year 2001-2002 onwards.

Definition of Pucca lapsed policies:
The policies under which overdue premium/s remain unpaid for more than six months from the date of the first unpaid premium are deemed to be pucca lapsed for the purpose of arriving at Net S.A. and Net No. of Lives in determining agents' eligibility for membership of any club. All policies issued in the previous financial year which stand pucca lapsed as on 31st March of the subsequent financial year are to be deducted from the policies issued in the subsequent year to arrive at the Net figure for considering the agents' eligibility for club membership under condition A irrespective of whether the first unpaid premium was due in the previous financial year or the subsequent financial year.

Life Membership:
Beginning from the Membership Year 2002-2003 Life Membership for CM and ZM clubs will be granted on fulfillment of any of the following conditions:
A) Minimum age of 60 completed years as on the date of commencement of Club
Membership year, and (Managers' club) for not less than 15membership years.
B) Continuous membership in the same club( either CM or ZM club) for not less
than 25 membership years.

At present Club Member Agents who are not covered by Group Ins. Scheme are eligible for Memento. Beginning from the Membership year 02-002 he cost of memento (including of cost of packaging, taxes etc) for various Club Member Agent will be as follows:

Types of Club Cost of Memento(Rs.)
Chairman's club 750
Z.M.'s club 375
D.M.'s club 200
B.M.'s club 100

The agent / member is required to submit the claim of membership/and or continuation on prescribed format within 30 days of New Business closing. The Office will verify the claim within 7 days of receipt. The interviews shall be completed in such a way that the results are declared by 31st July every year.

1 comment:

  1. Dear sir,
    please clarify the following.
    1. whether fully paid up policies
    under jeevan surabhi plans 106,107,108 which are not matured
    be included in policeis enforced.
    2.whether singhe premium policies
    up to maturity be included.
    whether pension plans vested and started pension be included or not.
    C.M's Club member


Powered by Blogger.