Incentive Structure for Agents and field Officers of PLI & RPLI - Dated – 18.09.2009

DIRECTORATE OF POSTAL LIFE INSURANCE
Department of Posts, Ministry of Communications &
Information Technology, Government of India
Chankyapuri Post Office Complex, New Delhi – 110021


No. 26-02/2009-LI Dated – 18.09.2009


All Heads of Circles
Directorate PSCI, Ghaziabad
All Regional PMsG
All Directors PTCs
Addl DG APS


Subject: Re-vitalization of PLI/RPLI Agency System


(i) Changes in the Agency System of PLI and RPLI:
(ii) Revision of the existing incentive Structure for Agents and field Officers of PLI & RPLI


In pursuance of decision of Postal Services Board in its 1st meeting held on 07.08.2009 as circulated under Department of Posts letter No. 1-1/2009-PSB dated 20.08.2009 the following orders are issued to have effect from 01.10.2009: -


(i) In partial modification of Postal Services Board (2007) decision as contained in PLI Directorate orders No. 26-02/2003-LI dated 20.09.2007 Divisional Head is now delegated the powers to engage PLI Direct Agents. A minimum number of 20 PLI Agents should be engaged per division;
(ii) PLI Agents /FOs (PLI) will be paid commission @ of 2% of renewal premium collected by them on PLI cash policies procured on or after 01.10.2009. This commission in over and above the existing commission based on sum assured of business procured;
(iii) In partial modification of postal Services Board decision as contained in PLI Directorate orders No. 26/02/2003-LI dated 20.09.2007, Divisional Head is now delegated the powers to engage the RPLI Agents including Angan-wadi workers, Mahila Mandal workers, Ex-servicemen, retired School Teachers, SHGs, Gram Pradhan/Members of Gram Panchayats etc, in order to expand the agency base of Rural PLI. A minimum number of 30 RPLI Agents should be engaged per Division;
(iv) RPLI Agents/Sales force will now be paid commission @ of 10% of first year premium and 2.5% commission on renewal premium collected by them on policies procured after 01.10.2009. An additional commission of 1.5% of premium will also be paid to group leaders/entrustees for collecting premum towards 1000 or more such RPLI policies procured on or after 01.10.2009.


2. The detailed procedure of empanelment of Direct Agents is given in Appendix to this letter. Heads of Circles are requested to issue necessary instructions to all Divisions /Regions to commence the process of empanelment of Agents forthwith so that required number of agents are in place from 01.10.2009.


3. These orders shall also be applicable to Agents already working.


4. Operating and Accounting procedure is being issued separately. Necessary modification in the Software is being made and is being communicated.


5. This issues with the approval of competent authority.


Sd/-
(Shekhar. K. Singha)
Chief General Manager