2. SALIENT FEATURES Come into force and Apply to all Appraisals commencing from 01-09-2007. Shall remain in force for not more than 3 Years for kalamurasu ......tsr
3. New Definitions Hill Station : A hill station situated at a height above the sea level of 1000 Meters or above and will include such places (not less than 750 meters) which is surrounded by and accessible only through hills with a height of 1000 meters and over above mean sea level. for kalamurasu ......tsr
4. New Definitions Rural Agent : An agent who is residing and working in rural area as defined by the IRDA from time to time. The definition of URBAN is as follows. a) All statutory Places with a municipality, Corporation, Cantonment board or notified town area for kalamurasu ......tsr
5. New Definitions b) A Place satisfying the following conditions 1. Minimum population of 5000 2. At least 75% of male working population engaged in non-agricultural pursuits 3. A Density of population of at least 400 per Sq. KM (1000 per Sq Mile) for kalamurasu ......tsr
6. New Definitions No. of Lives. Policies completed in the Relevant Appraisal Year Only. Joint Life Policies – Single Life. More than one policy from even different agents will be treated as Single Life. Different Children – Different Lives even proposer is same. for kalamurasu ......tsr
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9. Lapsed Premium Withdrawal of the credit of Lapsed Premium shall be only that amount of premium for which the Development Officer has been allowed Credit. If 80% credit of SFYPI was allowed, then only the 80% of Credit of SFYPI shall be withdrawn. for kalamurasu ......tsr
10. CREDIT FOR REVIVAL Policies revived at any time by the agents working under the organisation. Subject to the condition that the agent continues to be in the organisation of the same Dev. Officer. for kalamurasu ......tsr
11. Allotted / Terminated Agents Allotted/reinstated Agents the No years will be reckoned from the date of appointment not from the date of allotment/reinstatement. SFYPI of Allotted agents will be graded first then restrictive credit will be applied. For terminated agents SFYPI grading will be done as such the agent is in Force. for kalamurasu ......tsr
12. Cost Ratio The Cost Ratio of the D.O.s should not exceed 15% in the Appraisal Year to make them eligible for I.B.. The Cost Ratio should be rounded off to the nearest first decimal places. Example : 15.04% to be taken as 15.0% 15.05% to be taken as 15.1% for kalamurasu ......tsr
14. Graded Credit 8 yrs and above agts. If the elg. prem. Brought by individual agents shows an increase over the immediately preceding appraisal year, 100% credit will be given for that excess. Ex-gratia Credit For Dev. Officers with 30 years of service or 55 years of age. As at the beginning of the appraisal. 25 % of Graded Prem. will be added back as Ex-gratia. for kalamurasu ......tsr
16. Modifications of BIB Recruitment of Agent Managing Agency Organisation Specified Plans MDRT/COT/TOT Corp. Club Agents Rural Credit Performance based on Cost cal. on Qualifying Premium. Growth in SFYPI No. of Lives Assured Productive Agents Deemed Productive Agents. for kalamurasu ......tsr
17. GROWTH FOR PERFORMANCE Basic Condition: Should have completed 11 years of service as at the beginning & Cost Ratio upto 6 % and min. 50 Agents at the end of the appraisal. Increase : Cost up to 2 % -- 4 % of BIB Cost 2.01 to 4 % -- 3 % of BIB Cost 4.01 to 6 % -- 2 % of BIB. Cost Ratio calculated on the qualifying premium. for kalamurasu ......tsr
18. Growth in SFYPI (or) Elg. Prem.For Appraisals beginning dates 01.09.07 to 01.08.09 (First two years) Min. Growth 15% for Cost above 8% Min. Growth 10 % for Cost 3 - 8 % Cost Ratio upto 3% - NO Reduction in BIB Min. Elg. Prem Rs. 20,00,000 - for Increase. The increase/decrease is calculated based on every 5% blocks. (Rounded to integer) for kalamurasu ......tsr
19. Revised GOIBS 2007For Appraisals beginning dates 01.09.09 to 01.08.10(vide cir Mktg/ZD/1/2008) Min. Growth 10% for Cost above 8% Cost Ratio upto 8% - NO Reduction in BIB Min. Elg. Prem Rs. 20,00,000 - for Increase. The increase/decrease is calculated based on every 5% blocks. (Rounded to integer) for kalamurasu ......tsr
20. Increase/Decrease in BIB Increase/Decrease in BIB @ 2% for every block of 5% Increase/Decrease. Increase in BIB if growth in eligible premium is 10% more than previous year Decrease in BIB if cost is more than 8% and not showing 10% growth in eligible premium over previous year Maximum Increase - Rs.1,00,000 for kalamurasu ......tsr
21. No. of Lives. If the No. of Lives above 800 & at least 15 Productive Agents, the increase in BIB for every 30 Lives above 800 at the following rate. Maximum Ceiling Rs. 25,000. for kalamurasu ......tsr
23. No. of Lives. If the No. of Lives falls between 550-599 then decrease in BIB @ 4%. If the No. of Lives falls below 550 then decrease in BIB @ 10%. for kalamurasu ......tsr
24. No. of Lives Example – 1. No. of Lives : 1000, Prod. Agents : 15 BIB : 75380, Rate of Increase = Rs 500 + Rs 167.50 (0.66% of 25380) Amount of (1000-800) X 667.50 Increase 30 = Rs. 4005/- for kalamurasu ......tsr
25. No. of Lives Example – 2. No. of Lives : 450, BIB : 25000, Rate of Decrease = 10% of BIB Amount Decrease = Rs. 2500/- for kalamurasu ......tsr
26. Productive Agents. If there is at least 18 Productive Agents, increase @ 2.5% BIB for every productive agent above 18. Maximum Ceiling Rs. 20,000 If there is at least 600 Lives and Productive Agents 15, then there shall be no decrease in this count. for kalamurasu ......tsr
27. Productive Agents. If the Productive Agents is 14 or 13, decrease BIB @ 2%. If the Productive Agents is 08 to 12, decrease BIB @ 5%. If the Productive Agents is 7 & below, decrease BIB @ 10%. for kalamurasu ......tsr
28. Maximum Debit The Maximum Debit under Growth of SFYPI No. of Lives Productive Agents Shall not exceed 24% (or) Rs.200000 whichever is less for kalamurasu ......tsr
29. Deemed Productive Where a new agent is appointed in the relevant appl. Year completes either Atleast 20 Lives (or) 12 Lives & 1 lakh Eligible Premium (or) 15 Lives & Rs.70000 Eligible Premium Increase Rs.1000/- per agent Such agents shall also be counted for Productive Agent. Such Agents shall not be counted as productive in the succeeding appraisal. for kalamurasu ......tsr
30. Recruitment of Agents D.O. should have minimum of 40 Agents in the First year of the Scheme and 45 Agents in the Second year of the Scheme, in case, where min. is < 40/45 then, Expected NET ADDITION is 2 Agents. Till the level of 40/45 Agents is reached & Maintained. Allotted Agents will not be counted for NET ADDITION. for kalamurasu ......tsr
31. Recruitment of Agents There shall be no decrease if the organization has 40/45 Agents respectively. If fails to add minimum 2 Agents, IB will be reduced @ 0.5% per agent subject to a min.of Rs 1000 & max. of Rs 5000 per agent. for kalamurasu ......tsr
32. Increase in BIB Rs.2000/- for every net addition of 2 Agents subject to a max. of Rs.10000/- Basic Condition: Minimum 50 Agents as at the beginning of appraisal and these agents recruited in the year are active. for kalamurasu ......tsr
34. Bench Mark in terms of Elg. Prem. Under Specified Plans Basic Condition: 10 % of Elg. Prem. Of previous apprl. Year (or) Rs.10 lakhs whichever is lower. Increase: For every 2% increase or part thereof over 15 % - Increase 0.5 % of BIB sub. to Maximum of Rs.25000/- Decrease: For every 1% shortfall or part thereof - Decrease 1% of BIB sub. to a Maximum of Rs.25000/- for kalamurasu ......tsr
38. TOT : Increase in IB @ Rs. 10000 / AgtMaximum Allowed is 40,000 for kalamurasu ......tsr
39. Rural Credit IF 50% of the Agency Organization, At the beginning of the Appraisal Year consist of Rural Agents / Hill Agents, (IRDA Definition) Extra IB @ 10% is allowed subject to a maximum of 1,50,000 for kalamurasu ......tsr
40. CONVEYANCE ALLOWANCE For appraisals commencing from 01.09.06 Payable for Non IB earners only - w/o fast conveyance Rs 1800 pm - with fast conveyance Rs 2000 pm Non IB earners : Not earned any IB but working within expense limit Eligible premium not less than 7.50 lakhs Net addition of agents Atleast 3. for kalamurasu ......tsr
41. CONVEYANCE ALLOWANCE Net Addition of Agents - 2 : Rs.1200/1500 p.m. Net Addition of Agents - 1 : Rs.800/1000 p.m. Net Addition of Agents - 0 : Rs.300/400 p.m. Below existing level - No additional conveyance Such conveyance allowance paid should be included in the annual remuneration for the next appraisal year. for kalamurasu ......tsr
42. ADVANCE - GOIBS Eligibility : 1. Notional Cost Ratio is 15% or less. 2. At least a period of 6 months should have elapsed from the beginning of relevant appraisal year. 3. The previous appraisal should have been finalised in respect of the last appraisal year ended. for kalamurasu ......tsr
43. ADVANCE - GOIBS 4. The Basic Incentive Bonus formula shall be applied on the Qualifying Premium to ascertain the quantum of advance. [ Qualifying Premium = Eligible Premium – Lapsed Premium ] [ Lapsed Premium = First and Second year lapse (actuals) or notional 15%] 5. Annual Remuneration for the entire appraisal year including conveyance allowance (together with anticipated expenses) shall be taken into account to arrive Notional Cost Ratio. for kalamurasu ......tsr
44. ADVANCE - GOIBS Shall be limited to 90% of accrued Basic Incentive Bonus. Maximum of 3 advances in an appraisal year. Minimum period of 2 months between 2 advances. for kalamurasu ......tsr
