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.
Good things for knowledge update
I want total chart club membership
new club rules
for condition ‘B’ is it necessary to procure net no. of lives ?
pl. help what is net no of lives in which condition it is necessary condition’A’ or ‘B’
I am an agent from1990 and continuing my agency in my branch.For many years I was BM,DM,ZM and CM Club members. I was growing in agency business gradually. Suddenly the ULIP policies were introduced. Initially I was reluctant to sell them. But found ULIP policies giving better returns were attractive in our country. Started selling the policies. Everyone knows about it,what happened.Policy holders wanted the money back. Less,market was down,money was less. I really was afraid,did not know what to do.
I was down in my club membership since then. Very tough time.
Now I am in DM club member. I want to do my business slow and steady and carefully.
I do’nt clear about the 1st point (50% compensate from renewal com.) of relaxation clause till now. Whether that particular relaxation is exist or not.If not exist please show me the circular. thank you.
pl.overcome the term & conditions of club membership rull which is very complecated in present market and i think if this process can be change for monetary benefit and others condition then lic may be fullfill huge surplus buisness for every year.thanks
sir iam cm club member since 2003. due to ulip policies my business decreased. this financial year 2015-216 mminimum net lives 22. total lives 643. fpi 130000. renewal 450000.sir which club member will stand.
sir ihave posted cmment may 6,-2016 time 8:51.P.M Answer please.
please answer my comment which just I have posted.
please answer my just post comment.
Dear sir, I am C.M. club member since 2003.meanwhile I become C.M.club member in sep.2003 and continue C.M. club member up to F.Year.2013-2014. Last F.Year 2014-2015 I avail relaxation of minimum net live only. I continue C.M. more than 10 year.i.e 12 year. now F.Year 2015-2016. my minimum net lives 22 Total lives in force 643 FPI Rs. 130000. Renewal Rs.450000.Sir which club member will stand.Am I avail 2nd time relaxation. thanking for answer.
dear sir, I am C.M. club member since 2003 to 2014. I completed 12 year of C.M. club membership continouesly.I avail relaxation in 2015 due to lack of minimum net no. of lives only. which were less than minimum net lives required 40.now I am still C.M. club member. Sir this F.Year 2015-2016. my total no of lives inforce are 643. Total First year comm. is Rs. 130000. Renewal comm. is Rs.450000.But minimum net no of lives are 22 for F.year 2015-2016.Sir which club membership will be stand for next membership year.
Sir waiting for yours answer
dear sir, I am C.M. club member since 2003 to 2014. I completed 12 year of C.M. club member continouesly. I avail relaxation in 2015 first time. due to lack of minimum net no. of lives. which were less than 40 lives. now I am still C.M. club member. Sir this financial year 2015-2016 my total no. of lives inforce are 643. Total first year comm. is Rs.130000. Renewal comm. is Rs. 450000.But minimum net no. of lives are 22 only for financial year 2015-2016. Sir which club membership will be stand for next membership year for me.
Sir, I am waiting the answer for my comment posted on May 7, 2016 at 9:09pm
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lapse % me thoda sa up karna jaruri he and net lives commis fp vadhare hoy to lapse ma challavvu joeye
pl lapse 5 18 20%
Sir
I am gurnam Singh cm club memeber from last year but this year I got lapsation 16.66% but two policies under sss mode I have infrorsed on 5/2018 becouse under these two policies premiums were already deducting from PA .and lying in error deposited in branch office before 31/03/2018.If the branh office consider these two policies as infors then lapsation to be 14.28 % with this will my club membership save .Sir please clear me that the branch office can cosider these policies or no .
give a written application to your branch manager mentioning all the details, you can forward your application to higher authorities for consideration.
nice replies. what is the difference between “minimum net no.of lives” & “net no. of lives”. To my knowledge in “minimum net no.of lives” lapase, duplicates of the current or financial year is calculated . and whereas in “net no.of lives” current year duplicates,lapses & previous year lapses will be calculated. sir is it right.
There are 4 conditions to be completed to get a club membership, out of which first 2 are
a) Min net lives
b) net number of lives or total inforce lives
“a” condition refers that you have to do this much minimum new business in a financial year, while in “b” conditions you have two options either you do net lives or have total inforce lives.
Old agents have many total inforce lives so they complete only minimum net lives while new agents do not have less total inforce lives. So if you complete condition “b” by net lives your “a” condition will be automatically done.
Minimum net lives condition is inserted because you have to do certain new business to continue your club membership for next membership years.
Though in both the cases net lives is calculated as “Total lives introduced this year less duplicate lives less first year lapse lives”
sir , i am a z m club member agent and continuing 13 years and also took two relaxtion facility but this 2021-2022 f y my total inforce life is 350 , am i eligible for the same club