LIFE INSURANCE CORPORATION OF INDIA

CENTRAL OFFICE

“Yogakshema”
Jeevan Bima Marg,
MUMBAI – 400 021

Ref: Mktg./ZD/19/2009 10.8.2009

TO ALL ZONAL MANAGERS, OFFICERS IN-CHARGE

OF DIVISIONS, ZTCs, MDC, STCs AND AUDIT CENTRES.

Re: Rules on Allotment of Agents to Development Officers

At present the allotment of agents to Development Officers is being done

as per the provisions of Circular Ref. Mktg/ZD/45/2002 dated 1.7.2002.

The main objectives sought to be achieved through such allotment are:

a) To arrest high incidence of termination of agents.

b) To conserve the agency force that has already been created,
c) To support Probationary Development Officers during their initial period of
probation and;
d) To develop an existing direct agent to a much higher level of performance.

The provisions of allotment of agents to Development Officers have been

reviewed and the following revised instructions are issued for allotment of agents
to eligible Development Officers.

A) Non-allottable agents:

1. Member of Corporate/Chairman’s/ZM’s/DM’s Club.

2. Urban Career Agents and agents attached to Direct Agents’ Branches.
3. Qualified as MDRT at any time during last 5 years.
4. An agent who has brought an average FPI of Rs. 5 lakhs in the preceding 3
financial years.
5. An agent appointed as direct agent by the Corporation.

B) Allotable agents:

1. All direct agents, excluding those as defined in ‘A’ above will be considered as
allottable agents.

2. While allotting agents recruited by the Apprentice/Probationary Development

Officers who have become direct due to the exit of the
Apprentice/Probationary Development Officers, care should be taken to see
that the Probationary Development Officers are given preference in allotment.
3. Agents who have not completed 3 financial years shall be allotted despite the
average FPI being high. For the purpose of computing 3 financial years, the
financial year in which the agent is appointed shall also be counted as one
financial year even if the appointment is made on any day other than the first
day of the financial year.

4. The Branch Office including its Satellite Office shall be a Unit for the purpose
of arriving at the total number of allottable agents in a Unit.

C) To whom and How allotment should be done:

1. Probationary Development Officers:

i) Agents becoming direct due to the exit of the Apprentice Development

Officers and Probationary Development Officers will be allotted to
Probationary Development Officers subject to a maximum of 5 agents per
Probationary Development Officer. Agents who need the support of a
Development Officer will be allotted to Probationary Development Officers.
No specific consent of the agent and the Probationary Development Officer
is necessary.

ii) If after allotment to Probationary Development Officers if there are still more
eligible agents for allotment then in such a case the agents shall be allotted
to Confirmed Development Officers. Similarly, agents becoming direct due
to the exit of the Apprentice Development Officers and Probationary
Development Officers can be allotted to Confirmed Development Officers
only if there are no Probationary Development Officers posted to a Branch
Office. The procedure for allotment of such eligible agents to confirmed
Development Officers will be as detailed in (2) below.

iii) If after allotment to a Probationary Development Officer, if for any reason,

the Probationary Development Officer exits then in such a case the allotted
agents shall preferably be allotted to a confirmed Development Officer. The
procedure for allotment of such eligible agents to confirmed Development
Officers will be as detailed in (2) below.

iv) Credit of business of allotted agents to the Probationary Development

Officers would be given from the date of allotment provided during the
probationary period he/she appoints new agents equal to the number of
allotted agents and makes them active. The Premium Income and number
of lives shall be taken into account for deciding the confirmation of the
Probationary Development Officer. While deciding the confirmation of a
probationary Development Officer, the allotted agents will be deemed as
agents recruited by him.

v) The Manager (Sales) of the Divisional Office shall be the Competent

Authority for allotment of eligible agents to probationary Development
Officers. However, in case of any dispute with respect to allotment, the
same shall be decided by the Marketing Manager.

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2. Confirmed Development Officers:

i) Allottable Agents after allotment to Probationary Development Officers and

other allottable agents will be allotted to confirmed Development Officers
provided there are minimum 15 agents in his organisation as at the end of
the last completed financial year + there is a net addition of 2 agents or
more in his/her organisation during the last completed financial year. The
condition of net addition of 2 agents will not be applicable to a Development
Officer if there are 50 agents in his/her organisation as at the end of the last
completed financial year. Financial year for the purpose of allotment rules
shall mean from 1st April to 31st March of a year.

ii) All the allottable agents shall be ranked in the descending order on the
basis of the FPI brought by them in the earlier financial year. Where agents
become allottable before completion of one financial year (recruited and
becoming direct in the same financial year) then they shall be ranked at the
bottom of the ranking list of allottable agents on the basis of their current
year’s performance. Once this exercise is completed, the agents shall be
allotted subject to the consent of the agent and the concerned Development
Officer for such allotment. Preference for selection of Development Officer
would be given to the agents on the basis of their rankings i.e. agent ranked
no. 1 on the basis of the FPI brought in the last completed financial year will
be get the first chance, the 2nd agent gets the second chance and so on to
select a Development Officer.

iii) If an agent does not get a Development Officer of his/her choice and hence
does not opt for allotment to any other Development Officer then in such a
case he/she will continue to remain direct and will become allottable as per
rules in the next round. He/She will again be ranked on the basis of his/her
performance in the last completed financial year to decide the choice of the
Development Officer. If a Development Officer does not agree to allotment
of a particular agent to him then in such a case the agent shall be informed
accordingly and the said agent should be informed to give his/her choice for
allotment to another confirmed Development Officer.

v) The maximum number of agents that can be allotted to a confirmed

Development Officer in a year shall not be more than 5 agents.

vi) Allotment should be done by the Divisional Offices expeditiously. Care

should be taken to ensure that an allottable agent requiring the assistance
of a Development Officer must be allotted within a period of one month from
the date the agent becomes direct. However, depending on the availability
of allottable agents, there can be more than one round of allotment in a
financial year.

vii) The allotted agents will be absorbed in the organisation of a Development

Officer after 3 years from the date of allotment.

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viii) The Manager (Sales) of the Divisional Office shall be the Competent
Authority for allotment of eligible agents to eligible confirmed Development
Officers. However, in case of any dispute with respect to allotment, the
same shall be decided by the Marketing Manager.

D) Credit of business in respect of allotted agents:

1. All allotments will be valid from the date of allotment and there shall be no
retrospective effect for credit of business or other provisions.

2. Full credit may be allowed to the Development Officer on business brought by

the allotted agents, after date of allotment.

3. The performance of the agents allotted to the Development Officers will be

watched every year. The performance of the allotted agent shall be judged
with respect to the FPI brought by him/her in the financial year before and
after allotment. If the allotted agent requests for detachment within 3 years
from the date of allotment from the organisation of a Development Officer,
he/she must be detached immediately. Further allotment of the detached
agent will be considered after 1 year from the date of such detachment.
However, the reattachment shall not be done under the organisation of the
same Development Officer from whose organisation the agent has been
detached. The Competent Authority to consider such detachment shall be the
Marketing Manager.

E) Reversion of ABM (Sales) to Development Officers:

Where a Development Officer promoted to the cadre of ABM (Sales) is

reverted either at his/her request or by the Office, he/she may be allotted
his/her erstwhile organisation if the same is still unallotted at the time of such
reversion provided he/she has been posted back to the same office and same
place where he/she functioned as a Development Officer. If, however, his/her
organisation remains unallotted only partially at the time of such reversion,
the same may be allotted to him/her along with other allottable organisation.
Such allotment of unallotted agents will be as per the circumstances to be
decided by the Sr./Divisional Manager in-charge of the Divisional Office. The
Development Officer would be eligible for full credit of business brought by
the organisation since the date of allotment.

F) These instructions come into effect from the date of issue of the circular.
These instructions supercede the instructions contained in the earlier circulars
in the matter of allotment of agents to Development Officers. However, the
cases of allotment made before the date of issue of this circular should not be
reopened.

Executive Director (Marketing)