RCA Circular.pdf - NFIFWI

• If any RCA does more than the minimum required business in any monththen he will continue to get the stipend for those many months for whichhe has already given the business even if he is not able to give the quotabusiness for those months. Eg. If he gives the entire year’s business inthe first month, he would get the stipend for the first month and he wouldcontinue to get the stipend for the rest of the year even if does nobusiness.Minimum monthly performance for getting stipend.Months FYC (Rs.) NOL1 1200 22 1200 23 1200 24 1200 25 1200 26 1200 27 2800 38 2800 39 2800 310 2800 311 2800 312 2800 3Total 1Year24000 30• A RCA will have to get minimum No of Lives and First YearCommission as shown in the abovementioned Table to get the stipendfor the month.• If he does not get the minimum no. of lives and FYC as specified, hedoes not get the stipend for that month. However, if he is able to makegood the short fall in future then he will get the stipend for the previousmonths for which he has been able to fulfill the business quota.• First, the quota for the month will be adjusted, then the shortfall for theprevious months in the reverse order will be adjusted (both for NOLand FYC) and if still there is a balance then it will be set against thefuture months. An Illustration placed below (Annexure – I).• Hence, if any RCA does not bring in minimum business for the initialmonths but later is able to make good the shortfall both on count ofNOL and FYC, then the stipend for the earlier months will be released.He will have the opportunity to make good the shortfall until the end ofthe 12 th month.• Similarly, if he gives the entire year’s business in the initial month thenhe will continue to get the stipend for all the stipendiary months.Stipend:The stipend to trainee RCA shall be as follows:First Year : Rs.1500 per monthSecond Year : Rs.1200 per monthAdditional stipend for acquiring professional qualification: If a RCA clears the CIS examwithin 18 months of recruitment, a one time incentive of Rs 1000/- will be given.3

Annexure - IIllustration:Eg. one RCA performs as under:Months FYC NOL1 1200 12 900 13 1200 14 1400 25 2700 46 0 07 1200 28 10,000 159 10000 22• He will not get the stipend for the 1 st , 2 nd , 3 rd months.• For the 4 th month he will get stipend of Rs 1500/-.• For the 5 th month he gets the stipend as he has fulfilled thequota. Out of the balance of 2 lives one life gets adjusted 3 rdmonth. Stipend of 3 rd month gets released. Remaining 1 lifeand 300 FYC gets adjusted towards shortfall in 2 nd month. The2 nd month’s stipend released.• 6 th month, no stipend.• 7 th month, no stipend.• 8 th month stipend released and balance would be adjustedtowards the shortfall of 7 th , 6 th and 1 st months. Hence, stipendfor 7 th , 6 th and 1 st month gets released.• 9 th month- the performance has been good and he has beenable to meet the requirements of the 9 th month and the balancebusiness will meet the requirements of the 10 th , 11 th and 12 thmonth so even if he gives nil business in the remaining threemonths, stipend will be paid for all the three remaining months.6

Annexure IIILIFE INSURANCE CORPORATION OF INDIA__________________________ Branch OfficeDate:__________________________________________________________________Dear Sir,With reference to your application dated _______________, we havepleasure to inform you that you have been selected as a Trainee Rural CareerAgent at ________________ to operate in the areas comprising the villages of____________________________________. Your training will commence witheffect from_________________ and you are requested to report on________________at ____________________at the above address.2. In order that you may able to acquire adequate knowledge, proper attitude,necessary skills and positive work-habits for successful Life Insurance Sellingand servicing, you will be given intensive theoretical and practical trainingnormally for period of 2 years. During the period of your training, you will strictlyadhere to and abide by all instructions issued to you verbally or in writingearnestly.3. In order to assist you to meet your out-of-pocket expenses during theperiod of your training , you may be allowed, subject to quarterly reviews, an exgratiastipend at the following rates :-Rs. 1,500/- per month during the first year of training;Rs. 1,200/- per month during the second year of training4. It is clearly understood that the payment of ex-gratia stipend is with a viewto assist you to defray your out-of -pocket living expenses during the period oftraining and this financial assistance is not to be construed as salary.5. On satisfactorily undergoing full training , as envisaged in para 2 above,you will be awarded a Certificate of Proficiency testifying to your competence asa life insurance agent and as evidence of attainment by you of the requiredstandard.6. As a part of your practical training you will start selling life insurancepolicies immediately after your initial training of 6 days duration is over. Beforeyou start selling life insurance policies, you must pass Pre-recruitment Test ofAgents conducted by Insurance Institute of India, Mumbai. After passing thetest you will be issued license by IRDA to act as insurance agent.7. The monthly stipend mentioned above will be in addition to thecommission and Bonus commission which you may earn on this lifeinsurance business incurred by you.10

8. Notwithstanding the requirement of any minimum business you may berequired to complete each for the continuance of your agency granted interms of sub-regulation (1) of Regulation 4 of the Life InsuranceCorporation of India (Agents) Rules, 1972, you will, during the first andsecond year of training, be required to give a minimum completedbusiness as under:-Months FYC (Rs.) NOL1 1200 22 1200 23 1200 24 1200 25 1200 26 1200 27 2800 38 2800 39 2800 310 2800 311 2800 312 2800 3Total 24000 309. If you absent your self during the training period, you will not be entitled tostipend for the period of absence unless you are granted leave of absence bythe Chief / Sr./ Branch Manager. Such leave of absence will not exceed 4 daysin quarter and 15 days in the whole year. Any unauthorized absence for a longerduration will not only result in non-payment of proportionate stipend but also intermination of your training, if so decided upon.10. Not withstanding what is stated hereinabove, the Corporation reserves theright, in its absolute discretion, to terminate the arrangement for training andpayment of stipend without assigning any reason and without notice if itconsiders that it is no longer desirable to allow you to continue as Trainee RuralCareer Agent.11. Your training period shall in any case cease on completion of 2 years andthereafter no stipend will be paid.12. On the completion of your training in terms of para 11 hereof ortermination of the arrangement for training in terms of para 10 hereof, yourappointment an agent under the Life Insurance Corporation Of India (Agents)Rules,1972 will continue subject to your complying with various provisions of thesaid Rules. However, in the event of termination of your appointment as anagent under said Rules, the arrangement for your training and the payment ofstipend to you shall automatically cease.13. Your appointment as a Trainee Rural Career Agent is made to give youtraining for a professional career in Life Insurance selling and servicing whereunder the compensation is purely by way of commission. Since this appointmentis not a salaried appointment, the Life Insurance Corporation of India (Staff)Regulation are not applicable in your case.11

14. During the course of your training (a) you will report at the Branch Office or atsuch other place as may be advised from time to time for theoretical andpractical training at such hours as may be communicated to you verbally or inwriting from time to time, having regard to the requirement of training. You willalso confirm to the instructions given to you by the Chief / Sr./ Branch Manageror any other officer of LIC in the matter of joints calls, solo field activity, Servicingof clients popularizing life insurance in the area or any other allied assignment(b) You will maintain a Diary of your daily work in the prescribed form and submitfortnightly reports in the prescribed form to the Chief / Sr./ Branch Manager.Wishing you all the best,Yours faithfully,Chief/ Sr. Branch ManagerI accept the above mentioned terms and conditions of my appointment asTrainee Rural Career Agent of the CorporationDate:___________Signature:________________________12

Annexure IVLIFE INSURANCE CORPORATION OF INDIADivision _____________ Branch________WORK DIARY OF RURAL CAREER AGENTName of P.C.A ___________________________ Place __________________DATE SR.NO NAME OF THEPERSONCALLEDOCCUPATIONPLACEDATEOFLASTINTERVIEWIF ANYBRIEF REPORTON THE MEETING.(Signature of the RCA)13

Annexure VLIFE INSURANCE CORPORATION OF INDIADivision ____________FORTNIGHTLY REPORT OF RURAL CAREER AGENTName______________________Code NO. _______________Branch________1. Name of the persons contacted during the fortnight:(a) For the first time ________________(b) Follow up calls _________________2. Number of persons in the prospect list:-(a) As at the beginning of the fortnight_________________(b) Eliminated during the fortnight_(- )______________(c) Added during the fortnight ( + )_ _(d) Number as at the end ofFortnight________________3. New Business accrued during the fortnight:-No. of Proposals _________________Sum ProposedFirst PremiumCollected____________________________________4. Total New Business secured for the year (as at the end of fortnight)(a) Introduction --- No. of Proposals___________Sum Proposed Rs. _____(b) Completion---No. of Policies___________Sum Assured __________5. Other Comments , if anyPlace :( Signature of the R.C.A.)Date : Name :________________________________________________________________To be printed in triplicate – 2 copies will be sent by R.C.A. to Branch – Afterreviewing the work the Chief / Sr. /Branch Manager will send a copy of thereview and a copy of the report to Manager (Sales).14