A LIC agent who is in his 14th year of LIC agency year. His LIC closing year ending is December 2016. He has taken out only one policy of Jeevan Akshay of RS. 3 lacs on 28.3.2016. Now suppose, if he is unable to take out any policies in this year .. till December…
Wht will b happen to his agency.. ( I heard as per new rule.. no need to tk out all 12-15 lives).. please clarify.
Yes, there was a change in LIC Agents minimum business or MBG rules from 2016. These rules are as below.
- The Minimum Business Guarantee norms (MBG Criteria)-To be achieved by agents during the agency year-
An agent has to procure ANY ONE of the below three conditions.
a) 6 lives AND .50,000/- FYPI
b) 12 lives
c) Rs.1 Lac FYPI. Notwithstanding the above, an agent shall be exempt from bringing in the business required of him, if he has continually worked for the Corporation as an agent for a period of- A) Not less than 21 years ; or B) At least 15 Yrs and he is at least 55 years of age; or C) 15 Yrs and at any time subsequent thereto there is a business in force in the books of the Corporation under his agency yielding a renewal premium income of not less than Rs. 2,00,000 per annum.
- The criteria for termination of agency for failure to achieve the Minimum Business Guarantee-
If an agent fails to bring in the business required of him as specified in 4(a) above in an agency year, his appointment shall stand terminated at the end of such agency year under the provisions of Agents Rules, 1972.
- The criteria for re-appointment / reinstatement of agents terminated for failure to achieve the Minimum Business Guarantee-As per Agents Rules, 1972 and amended from time to time.
Let me know if you still have any doubts.