Life Insurance Corporation of India (LIC) has more than 12 lac agents. To motivate the agents, LIC has made different club according to the business procured by agents and club membership rules. These clubs mainly are, Distinguish Club, Branch Managers’ Club (BM Club), Divisional Managers’ Club (DM Club), Zonal Managers’ Club (ZM Club), Chairmans’ Club (CM Club), Newly introduced Galaxy club and Corporate Club.
As per the business procured by the agents and club membership conditions, the agent gets the club membership for one year from 1st of September to 31st August and can continue or become a member of the higher club by continuing or qualifying conditions of the higher club.
LIC has also provided some relaxation in these conditions so as to bring new and more agents in these clubs
Relaxation conditions to qualify or continue the club membership in a club
- An agent will have to fulfill condition with regard to Renewal Commission and First Year Renewal Commission. However, a shortfall in fulfillment of First Year Commission (paid) condition may be accepted maximum up to 50%, in years to be required for Club Membership, provided it is compensated with the same or higher percentage increase on the basic condition prescribed for Renewal Commission paid
- A shortfall in fulfillment of Renewal Commission paid condition may be accepted up to a maximum of 100% in years to be required for Club Membership provided it is compensated with the same or higher percentage increase on the basic condition prescribed for First Year Commission paid. This means a newly appointed LIC agent can aspire to be a member of any club from day 1.
- If the first-year lapsation of a continuing club member go above 15%, but other qualifying conditions are fulfilled, then he may be continued in the club but, he will be kept under watch and no fresh advances will be paid. But if an FP lapsation is greater than 15% in a qualifying year for an aspiring club member then that year will not be considered for club membership purpose.
- An agent who is a club member for a certain club will continue to be in the club if he fails to bring a minimum net number of lives if he has completed 5 years in the same club then relaxation of 1 year and if club member of a certain club for 10 years then relaxation of 2 years. Note: This relaxation is for the only minimum net number of lives, agent have to qualify in other conditions.
- An agent who has completed the age of 60 years as on the date of commencement of club membership year and had been a continuous member of the same club for not less than 15 membership years can continue the membership of the same club by fulfilling at least 75% of the criteria applicable for that club.
These relaxations are given by LIC to motivate agent, even if agents are not able to do the required amount of business (according to above-mentioned conditions) due to some unforeseen conditions with him/her.