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
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To,
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1.
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All Heads of Circles
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2.
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Addl DG APS
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3.
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Director, RAKPNA
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4.
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All Regional PMsG
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5.
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All Directors PTCs
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Office Memorandum
Subject: Revisedincentive structure of PLI/RPLI
The matter regarding puttingin place an appropriate marketing (sales) and incentive structure for PLI and RPLI has been receiving attention in the Department for quite some time.
2. Consideringthe 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 decisionstaken 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 keepingwith the new Marketing (Sales) structure, the incentivepayable to PLI sales force has now been revisedkeeping the following objectives under consideration:
(i) Make the incentivestructure for PLI sales force into a Group Incentive.
(ii) Make the PLI incentivestructure based on premium income, as against the existing norm of the incentive based on sum assured.
(iii) Make the PLI incentive structuresuch that medium to long-term policies
are more attractive from sales perspective.
s. Accordingly,the revised incentivestructure 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):
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Premium paying term
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Incentive Structure
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Up to and equal to 15 years
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4% of first year premium income
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More than 15 years but less than or
equal to 25 years
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10% of first year premium income
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More than 25 years
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20% of first year premium income
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b) Anticipated EndowmentAssurance policies:
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Premium paying term
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Incentive Structure
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less than or equal to 15 years
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s% of first year premium income
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with term beyond 15 years
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7% of first year premium income
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5.1.2 Renewal incentive:
2% of renewal premiumin 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 payableto the sales force assigned to him/her. Thus,
incentive for Group Leaderwill not be in additionto the incentive payable to the
sales forcebut 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 applicablefor other categories of sales force as mentioned at para 2.1.1 above.
6. The incentive structurefor RPLI remains unchangedas under:
(i) 10% of first year premium income towards the RPLI policies procuredby sales force.
(ii) 2.5% of renewal premium income in respect of RPLI policies procuredon
or after 01.10.2009.
In addition, Sub-Divisional Heads (IPO/ ASPO) shall get 10% of procurement incentive payable to GDS under her Ihis jurisdiction, on account of verification of
RPLI proposals.
7· The revised incentive structure shall come into force from 01.04.2017.
Sd/-
(Vishvapavan Pati)
Chief General Manager
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