4 May 2017

New Improved Incentive Structure for PLI and RPLI Sales

F.No: 28- o6 /2014- LI 
Government of India 
Ministry of Communications Department of Posts
(Directorate of Postal Life Insurance)

Chanakyapuri P.O.Complex, New Delhi-110021
Dated:      03.05.2017


To,



1.



All Heads of Circles

2.
Addl DG APS

3.
Director, RAKPNA

4.
All Regional PMsG

5.
All Directors PTCs


Office Memorandum




Subject: Revised incentive structure of PLI/RPLI



The matter regarding putting in place an appropriate marketing (sales) and incentive structure   for  PLI  and   RPLI  has  been  receiving  attention   in  the Department for quite some time.

2.      Considering the need for professionalism in selling policies and ensuring better after- sales service, the matter was discussed during Heads of Circles Conference held  from  2oth  May 2016  to  22nd  May  2016  at  Hyderabad  and thereafter examined by the Postal Services Board in detail.

3.     In light of the decisions taken by the Postal Services Board in its 6th meeting for 2016 held on 06.07.2016,  the orders for revised Marketing  (Sales) structure for PLI j RPLI were issued vide this Office OM of even no dated 10.08.2016.

4.       In keeping with the new Marketing (Sales) structure, the incentive payable to PLI sales force has now been revised keeping the following objectives under consideration:

(i)       Make the incentive structure for PLI sales force into a Group Incentive.
(ii)      Make the PLI incentive structure based on premium income, as against the existing norm of the incentive based on sum assured.
(iii)    Make the PLI incentive structure such that  medium to long-term  policies
are more attractive from sales perspective.



s.    Accordingly, the revised incentive structure for PLI sales force is as follows:


5.1       Incentive for PLI Sales Force other than Army Postal Service:

5.1.1   Procurement incentive

a)  Policies other than Anticipated Endowment Assurance (i.e. WLA, CWLA, EA, Children policy and Yugal Suraksha):

Premium paying term
Incentive Structure
Up to and equal to 15 years
4% of first year premium income
More than 15 years but less than  or
equal to 25 years
10% of first year premium income
More than 25 years
20% of first year premium income

b) Anticipated Endowment Assurance policies:

Premium paying term
Incentive Structure
less than or equal to 15 years
s% of first year premium income
with term beyond 15 years
7% of first year premium income


5.1.2   Renewal incentive:

2% of renewal premium in respect of cash PLI policies of all types to all categories of
PLI sales force.


5.1.3   Incentive for Group Leaders:

Group Leader will be paid 7% of the group incentive i.e. 7% of the total incentive for
procurement  and  renewal payable to the sales force assigned to him/her. Thus,
incentive for Group Leader will not be in addition to the incentive payable to the
sales force but a part of it.



5.2     For PLI Sales Force other than Army Postal Service:

APS sales force will be entitled  to  incentive for  procurement  only. The rate  of incentive will be so%  of incentive rates applicable for other categories of sales force as mentioned at para 2.1.1 above.


6.      The incentive structure for RPLI remains unchanged as under:


(i)        10% of first year premium income towards the RPLI policies procured by sales force.
(ii)       2.5% of renewal premium income in respect of RPLI policies procured on
or after 01.10.2009.



In addition, Sub-Divisional Heads (IPO/ ASPO) shall get 10% of procurement incentive payable to GDS under her I his jurisdiction, on account of verification of
RPLI proposals.


          The revised incentive structure shall come into force from 01.04.2017.
Sd/-
(Vishvapavan Pati)

Chief General Manager

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