Direct Marketing Department , Central Office, Yogakshema,

8/14/2019 Direct Marketing Department , Central Office, Yogakshema,

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Direct Marketing Department , Central Office, Yogakshema, Mumbai-21.

Re: LIC of India ( Direct Sales Executives) Scheme, 2009

The Life Insurance Corporation of India hereby formulates the following

scheme, namely:-

1. Short Title and commencement:

1) The Scheme may be called LIC of India ( Direct Sales Executives )

Scheme, 2009.

2. Definitions:

In the Scheme, unless the context otherwise requires,

a) LIC means the Life Insurance Corporation of India;b) Scheme means LIC of India (Direct Sales Executives) Scheme , 2009

c) The Chairman means The Chairman of LIC of India.

d) The Zonal Manager means The Zonal Manager In-charge of a Zone.

e) Engaging Authority means Sr. Divisional In-charge of a Division.

f) Development Officers mean Class II officers of the Corporation.

g) License means license issued by IRDA to act as insurance agent after

undergoing pre licensing training and passing the examination.

3. Nature of Engagement:The engagement shall be purely on Contractual Basis initially for a period of

three years. The terms and conditions of engagement will be governed by

LIC of India (Direct Sales Executives) Scheme , 2009.

4. Number of Direct Sales Executivesto be engaged:

The number for the purpose of engagement shall be decided by the Zonal

Manager based on the requirement from time to time.

5. Conditions of Eligibility:1) An Applicant must be an Indian Citizen.

2) An Applicant should possess a Bachelors Degree from a University

established in India under a Statute.

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Note: Preference may be given to those applicants who possess the Bachelor

Degree or Diploma in Marketing /Management. Good working knowledge

of English and also one Regional language preferably local language is

desirable. Knowledge of soft skills such as Power Point / Word / Excel

would be an additional advantage.

3) The age of applicant for engagement as Direct Sales Executives, shall be

not less than 21 years or more than 35 Years:

Provided that the upper age limit in respect of candidates specified in

Column (2) of Table-I shall be as specified in the corresponding entry in

Column (3) of the Table.

TABLE I

Sr.No.

Category Age limit in years

(1) (2) (3)

(1) Member of a Scheduled Caste or a

Scheduled Tribe.

40

(2) Member of OBCs (other than those in

creamy layer).

38

(3) Ex-serviceman 35, increased by the

number

of years of service inthe armed forces subject

to maximum age of 45

years where he is a

member of OBCs and

47 years where he is a

member of SC or ST

and Maximum of 42

years in Other than

SC,ST,OBC Cases.

NOTE: The Chairman may relax the upper age limit shown in Column No.3

in individual cases, for reasons to be recorded in writing.

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The age of an applicant shall be computed in terms of completed years as on

the cut-off date mentioned in the notification inviting applications for

engagement as Direct Sales Executives.

6. Mode of Selection:

1) Selection of Direct Sales Executives shall be made by the Zonal Manager

by inviting applications through notifications in at least two newspapers

having wide circulation in the area in which the Divisional Offices are

situated. Zonal Managers may also circulate the notification to the

Employment Exchange of the concerned Divisions. This notification will

be an abridged employment notice and the candidates shall be advised to see

the detailed notification on the internet site of the Corporation. Application

forms shall be downloaded from the Website.

2) The eligible candidates shall appear for a written test, if required and on

being declared Successful in the same, for an interview by a committee

constituted for the purpose by the Zonal Manager and consisting of oneofficer not below the rank of Asst. Divisional Manager and two officers not

below the rank of Administrative Officer as per prevailing Govt. guidelines.

The Zonal Manager shall decide whether to hold the written test or not. If no

written test is required, then, short listed candidates shall be called for

interview. The Zonal Manager shall have absolute discretion in the matter of

prescription of minimum marks for a candidate to be declared successful in

the written test and to stipulate the number of candidates to be called for the

interview. The candidates shall be ranked in order of the aggregate of their

marks in the written test and the interview and selection shall be made from

among them by the Zonal Manager in the order of their merit having regard

to the number of Direct Sales Executives (DSE) proposed to be engaged.

Where the Zonal Manager does not accept the evaluation of a candidate by

the Interview Committee, he shall record the reasons for such disagreement

and after, interviewing the candidate himself, pass such orders as he deems

fit.

7. Medical Examination:

No person shall be engaged as Direct Sales Executive unless he has been

certified by a qualified medical practitioner, approved by the Corporation, tobe medically fit to undergo the training and subsequent engagement as a

Direct Sales Executive to discharge his duties.

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8. Engaging Authority:

The Engaging Authority of Direct Sales Executives shall be the

Senior/Divisional Manager-in-charge of the Divisional Office.

9. Training:

On selection as Trainee Direct Sales Executives, the candidate shall be

informed about the same; the letter shall also specify that, the provisional

selection shall be valid for a period of 3 months, during which time the

candidate must acquire the license. (License for this purpose means the

IRDA agency license). During the 3 months period or till he is designated as

DSE whichever is earlier, he shall be paid an Amount of Rs.1,500/- per

month. The Trainee Direct Sales Executives would be required to undergo

50 hours of classroom training or as decided by IRDA from time to time and

will be required to pass a test conducted by IRDA. After passing the test

they shall be required to undergo an interview by the Designated Person forissue of License to canvass Insurance Business. On being granted the

License, they shall be designated as Direct Sales Executives and a letter

containing the terms of Contract shall be issued to them after the candidate

gets license. The provisionally selected candidates shall not be entitled to

any kind of leave during the 3 months training period.

10. Allocation:

Those Direct Sales Executives who accept the terms of Contract will be

allotted to concerned Divisional Office. In case a DSE is allotted to a

Conventional LIC Branch / Parent Branch / Satellite Office, it would be for

operational convenience and the role of the DSE shall primarily be to

generate New Business from the market and in no way shall he be involved

with any other activities of the LIC Branch.

11. Practical Training:

All Direct Sales Executives shall undergo 15 days of field training and

induction covering all aspects of the role DSE is expected to undergo and in

life insurance products/ presentation and service related matters like

Underwriting, Policy Servicing, Claims Procedure, etc. at ZTC/STC.

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14. Remuneration

The Direct Sales Executives on successful completion of training as

mentioned in clause 9 hereinabove shall be paid Remuneration Every Month

as follows:

Year Stipend Conveyance Mobile

Reimburse

ment

Total

Remuneration

Per Month (In

Rs)

First Year 8500 1000 500 10000

Second

Year

9500 1200 600 11300

Third

Year

10500 1500 700 12700

The Above said remuneration will be subject to achieving the MinimumBusiness Parameters

Chairman is authorized to revise the remuneration given above, as and when

required, depending upon Market conditions, performance in New Business,

etc.

15. Incentives:

The Direct Sales Executives completing more than the Minimum Business

Parameter on Eligible First Year Premium shall be eligible to receive CashIncentive in addition to the remuneration given in clause 14 above, as

follows:

The amount of Cash Incentive shall be 30% of the Eligible First Year

Premium brought in excess of the Minimum Eligible FYPI for the relevant

year. In effect, the Cash Incentive for each Quarters New Business

performance shall be paid every Quarter after a performance review.

For e.g. if a DSE completes Eligible First Year Premium of Rs 10 Lacs

during the 1st Year then, he shall get 30% of Rs 7.36 lacs (10 lacs minus 2.64

lacs) ie Rs 2,20,800/- as Cash Incentive after completion of the year.

Chairman is authorized to revise the Incentive Structure, depending on

Market Condition, New Business Performance, etc.

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16. Leave:

The Direct Sales Executives will be eligible for 12 days of Casual Leave

(one day on completion of a month). They can also be granted Extra

Ordinary Leave, only with out payment of fixed remuneration for the period.

Total period of EOL which can be granted to a DSE is 30 days. If EOL

exceeds 30 days, the contract shall be liable to be terminated. They shall be

entitled to 30 days earned leave in a year @2.5 days leave for every

completed month. However leave cannot be claimed as a matter of right and

may be granted subject to convenience of office. In no case, short duration

earned leave of less than 3days shall be sanctioned. Casual leave and earnedleave shall not be combined. Unavailed leave at the end of the contractual

period of engagement shall lapse at the end of three years though the

contract may be extended further. No other leave shall be admissible and any

absence not covered by leave shall be on loss of remuneration and shall have

effect on continuation of the contract.

17. Traveling Expenses:

Tour travel expenses will be reimbursed to the DSEs for approved tours.

Actual Traveling Expenses for Train Journey or for Bus Journey by the

shortest available route subject to the maximum limit of Second Class Train

Journey shall be reimbursed. Daily Allowance at the rate of Rs 150/-, Rs

100/- & Rs 80/- shall be paid for Tour to A Class, B Class & C Class

cities respectively. Incidental Charges as applicable to Agents of the

Corporation shall also be allowed.

18. Activity Report:

Every Direct Sales Executive shall submit a day wise weekly report of all his

activities to the Branch Manger (Dir.Mktg). Submission of weekly reports is

Mandatory for release of Monthly remuneration.

19. Performance Review:

The Performance of DSEs shall be reviewed every month and the review

format for every quarter shall be sent by the Branch Manager (Dir.Mktg) and

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to the Sr.Divisional Manager(I/C) and the Regional Manager (Direct

Marketing) of the Zone.

20.Termination of Contract:

In case a Direct Sales Executive does not procure the stipulated minimum

New Business in a year, then his/her contract shall be terminated forthwith

without giving any notice to him/her. The Contract shall also be liable for

being terminated, if the Direct Sales Executive commits a misconduct,

breach of any Statutory Provisions or is found to be indulging in activities

detrimental to the interests of the Corporation provided however that, before

termination of contract for reasons other than for minimum business

parameters as stipulated elsewhere in the scheme, a Show Cause Notice shall

be issued to the DSE. The engagement of DSE shall remain suspendedduring the period of issuance of Show Cause Notice and final decision on

the reply thereof. The Sr. Divisional Manager-in-charge of the Division shall

be the Competent Authority for termination of contract on any of the

grounds mentioned herein.

21.Continuity as a Direct Agent:

A Direct Sales Executive may be allowed to continue individual agency with

LIC if he desires so, but only as a Direct Agent either after the period of

Contract is over or even when the Contract with him is pre maturely

terminated for reasons other than misconduct and if he is otherwise found

suitable or if the DSE submits his resignation before the period of contract is

over.

22.Working Hours:

This being a full time marketing assignment, there shall be no fixed working

hours and they may be required to work as per the suitability of the Direct

Marketing Department

23. Renewal of Contract:

The contract can be extended for another term of two years and again for

another one year subject to performance and suitability at the sole discretion

of the Corporation. The minimum requirement of performance shall be that

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the Direct Sales Executive should have received New Business Incentive for

at least 1 Year out of 3 years. Once a Direct Sales Executive procures the

minimum New Business during the three year contract period as per

stipulated norms and is Other wise found suitable, the period of Contract

may be renewed with suitable increase in incentive and remuneration, which

Chairman is authorized to decide.

24. Reservation:

While engaging Direct Sales Executives, the Engaging Authority shall

provide for reservation of posts for members belonging to Scheduled Castes

and Scheduled Tribes and Other Backward Classes in the same manner and

to the same extent as provision is made in appointment to the service of the

Corporation. Reservation shall also be provided to other persons as may be

decided by the Corporation from time to time.

25. General:

1. Selection as a Direct Sales Executive shall in no way confer the right on

any candidate to claim or seek employment with the Corporation.

2. Other than the amount and the incentive mentioned elsewhere in the

instructions the selected Direct Sales executive shall not be eligible to

receive any amount whatsoever by way of terminal Benefits or contribution

to Provident Fund or Welfare Fund or Health Care Fund, etc.

26. InterpretationThe Chairman may from time to time, issue such instructions as may be

necessary to give effect to and carry out the provisions of this scheme. If

any doubt arises as regards the interpretation of any of the provisions of this

scheme, the matter shall be referred to the Chairman whose decision shall be

final and binding on all concerned.

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Documents

Direct Marketing Department , Central Office, Yogakshema,