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LIC club membership terminology

Terminology that every LIC club member agent must know

LIC of India has more than 12 lac agent, and according to their performance LIC rewards them in the different form. One is Club membership. According to the business procured by agents in last 4 year LIC awards club membership to agents. These Clubs are Corporate Club, Galaxy Club, Chairman Club, Zonal Manager Club, Divisional Manager Club, Branch Manager Club and Distinguish Club. LIC has made the criteria for the entry to new club or continuation in a new club. These criteria mainly depend upon a number of lives procured by an agent in the financial year, total in force lives, renewal commission, and first-year commission. But other than this, there are many other factors which an  LIC club member agent should know to continue or enter in a new club, which we are going to discuss here one by one, all the points covered here to be done in a financial year.

Number of Policies” in a financial year:

This is, all the policies procured by an agent in a financial year (1st April to 31 March). This will also include policies done on the same life by the agent in the same financial year.

Number of lives” by LIC club member agent in a financial year:

The number of lives is a very crucial factor for getting a club membership. The number of lives means, the number of the different people insured by an agent in a financial year. An agent may do 2 or more policies of a single person. When an agent does 100 policies it does not mean he has done insurance of 100 different people. There is no exact correlation between Number of Policies and Number of Lives, an agent can do insurance of 2 or more individuals in 1 policies also. But, more the number of lives, more the policies.

“Total Inforce Lives” by LIC club member agent

This is nothing but all the policies procured by an agent from the first day of his agency, which is still running (in force condition as on  31 March of the current financial year). Only those policies will be considered as in force where  FUP is less than 6 months. Policies under auto cover are not included in “total in force lives” where FUP is >6 Month.

Policies which are in auto cover (like New Bima Gold, New Janraksha, and Jeevan Saral) but FUP >6 months are considered as lapse and not included in “Total in force lives” of the agent. In differed annuity policies where policy is vested and premium payment, the term is over are also excluded from “Total in force lives”. 

“Net Number of Lives” by LIC club member agent in a financial year

This is the first condition for LIC club member agent, which he has to complete to continue or enter a new club. for CM club, it is 40 Net lives and 30, 20 and 15 for ZM, DM, and BM club respectively. The net number of lives arrives after reducing duplicate lives, first-year lapse policy from the total number of lives introduced by an agent in a financial year.

Here yearly policy complete in last financial year having FUP >6 months will also be taken as first-year lapse policy. I am quoting the lines of LIC circular Mktg./A/ZD/29/2009 Date: 22nd October 2009 for club member conditions here for reference.

“Net Number of Lives” are distinct lives insured ( not number of policies) during the qualifying financial year reduced by the number of lives who had been insured in the financial year preceding the qualifying financial year whose policies are lapsed as on 31st March of the said qualifying financial year.

“First year Commission” by LIC club member agent in a financial year

This is the commission paid to an agent for the first year of the policy. The first-year commission includes first commission paid on yearly policy, commission paid on first two installments of half-yearly policy and commission paid on first 4 and 12 premiums in quarterly and monthly mode policy respectively. Bonus commission paid to an agent on the first-year commission is also included here for club membership purpose.

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6 thoughts to “Terminology that every LIC club member agent must know”

  1. My age is 74 years. I am CM CLUB MEMBER since 1992 continuously and I am a Life member. Now my question is if I am unable to do the minimum business requirements for CM club member, wheather I will get the full benefits like Office allounce, computer allounce, attestation power etc. As I am already a Life member of CM Club.

    1. 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.
      A Life member need not fulfill the mandatory condition. However, they will have to fulfill the other conditions for continuing as a Regular Life Member as per Table 1. A non-regular life member is the one who has not fulfilled the eligibility criteria prescribed for the Chairman’s/Zonal Manager’s Club. A nonregular life member will not be eligible for any monetary benefits including participation in the Convention. Such an agent will be eligible for functional privileges only.
      a. An, agent who becomes a life member of a club and also qualifies for the membership of a higher club, will have the option to avail of the benefits and functional privileges of either the life membership of the lower club or the benefits and functional privileges as a regular member of the higher club. He shall not be entitled to the benefits of both the clubs concurrently.
      b. The agent will continue to be a life member as long as he is an agent and does the MBG (unless he is an exempted there from) and will be entitled to exercise all functional privileges of the club concerned with reference to servicing etc. If at any point of time, he fulfils the requirements for condition of membership, he will automatically be restored to full

  2. lic authority providing relaxation to development officer from fulfillment of minimumcriterial condition laid on d.o.oflic then why not to lic agent who are the
    pioneer of the corporation.i am not an agent but market condtion is not good thats you are knowing then why you are making this differance.As I believe that it is absolute lnjustice to all agent of lic of humble request to think over it and make justification

  3. On Net no of lives 600 to be in force for CM club, please clarify on the following:
    1. For policies with 15 year term, Prem Term of 8 years, after 8 years it becomes fully paid-up, will this be ejected out of Total lives on 9th year.
    2. For Jeevan akshay and other single premium policies whether they will go out of total no of lives as soon as they are put.
    3.Policies which are Reduced paid up NOT lapsed without any value, will also not be included.

  4. SIR I am sandipan das LIC agency from 15+ years but now i am BM CLUB MEMBERS only last F/Y my total inforce policy is 256, sir how the clam my benefits and send me (PDF) all club member BENEFITS .

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