SBU-CLIA DEPTT.

3rd floor, Central Office,

Yogakshema”,
Jeevan Bima Marg,
MUMBAI 400 021
Tel. No. 22855980,66598094
e-mail: co_clia@licindia.com
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Ref: CO/ CLIA/ZD/3/2008 14.05. 2008

To,
ALL ZONAL MANAGERs (I/C)
ALL SR/DIVISIONAL MANAGERs (I/C)

Re: 1.Agreement to be signed by CLIA

2. Allotment of Authorization Code No.

Further to the Administrative instructions for implementation of CLIA

Scheme-2008 issued vide circular CO/CLIA/ZD/2/2008 dated 08.05.2008, the
following instructions are issued:

1. Agreement to be signed by CLIA

In para 4 of the circular, it is mentioned that the Sr/Divisional Manager

(I/C) will declare the result of the candidates interviewed by the Committee.
These selected candidates will be issued a copy of draft agreement which they
should sign, get witnessed and submit to the Branch In-Charge of the Branch to
which they are attached.

A copy of the letter to be given to the selected candidate signed by

Marketing Manager (CLIA /ANNEX I /3 /2008) and a copy of the draft agreement
to be executed by the CLIA (CLIA /ANNEX II /3 /2008) are enclosed. He may be
given 15 days’ time to sign and return the agreement to the Branch to which he is
attached. The Branch should forward the same immediately thereafter to the
Marketing Manager.

On receiving the same, the Divisional Office will issue him a letter of
authorization to act as CLIA (CLIA /ANNEX III /3 /2008). Appointment letter of
Chief Life Insurance Advisor enclosed to C.O. Circular CO/CLIA/ZD/2/2008 dated
08.05.2008 in CLIA/ANNEX II should not be used.

2. Allotment of Authorization Code No.

In para 10 of the Circular CO/CLIA/ZD/2/2008 dated 08.05.2008, it was
mentioned that the instructions regarding allotment of Code Number will be
issued shortly.

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 We have now been advised by IT Department, C.O. that the Authorization
code No. (ACN) should be given as under:

1. The ACN (Authorization code no) will consist of 9 digits.

2. The first field will always be M.
3. The next four fields will start from 0001, 0002 etc. i.e. numerically in
increasing order, branch wise.
4. The last four fields will represent the Branch code. If the Branch code
is of 3 digits, the last field will remain blank.
If the Branch code is of 4 digits, there would be no blank field.

e.g. a) If the Branch code is 923, it should be mentioned as 923

and not 0923.
b) If Mr. X is the first CLIA in MDO IV under Branch 923,
the Authorization Code No. (ACN) for Mr. X will be

M 0 0 0 1 9 2 3

For the next CLIA in same Branch, it will be

M 0 0 0 2 9 2 3

For CLIA in other Branch, say Branch 925 of the same

MDOIV, the ACN for first agent will be

M 0 0 0 1 9 2 5

Initially, Divisional Office will maintain a register in the format given in

para 10 of the Circular CO/CLIA/ZD/2/2008 dated 08.05.2008 and allot ACN to
the CLIAs in the pattern shown above.

Thereafter, a letter should be issued to the CLIA signed by Marketing

Manager (CLIA/ANNEXIII/3/2008) mentioning the Authorization Code No. (ACN)
which he should use in all correspondence.

Software Development Cell, Central Office, would be shortly generating

the letter of authorization mentioning ACN to be signed by Marketing Manager
through the module.

Till such time, such letters should be downloaded from Marketing site and
issued.

Executive Director (SBU-CLIA)

Annexure I
Annexure II
Annexure III

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 CLIA/ANNEX 1/CIR 3/2008

On the Divisional Office Letter Head.

Date:

To,
Name :
Address :
Office. :
LIC Branch :

Dear Sir/Madam,

Re: Chief Life Insurance Advisor.

This is further to your application dated………………. and the subsequent

interview you had with us on…........................ ., we are pleased to inform you
that you have been provisionally selected for authorization to act as Chief Life
Insurance Advisor.

Please note that your authorization shall be governed by the LIC of India
(Chief Life Insurance Advisor) Scheme, 2008 hereinafter referred to as ‘the
Scheme’ besides administrative instructions / directions etc issued in the
Scheme and changes, if any made to the Scheme, from time to time.

At all times you shall maintain absolute devotion, integrity and abide by
the terms and conditions of the Scheme and shall obey and carry out all orders,
instructions and directions, etc scrupulously.

Your endeavor shall be to promote the interest of the Corporation and

shall always maintain politeness, courtesy and dedication in all transactions.

We enclose a draft agreement to be executed by you on a stamp of

appropriate value. Your authorization shall take effect on your submitting the
executed agreement. Authorisation Code No. (ACN) will be allotted to you
thereafter which should be used in all correspondence.

Please note to return the same duly signed, on or before …………………

to the Branch (In-Charge)_______________ Branch.

Yours faithfully,

Marketing Manager
Encl: Draft Agreement.

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 CLIA /ANNEX II /CIR 3/2008

TO BE EXECUTED ON A STAMP PAPER OF APPROPRIATE VALUE AS

APPLICABLE IN THE RESPECTIVE STATE.

To
The Marketing Manager,
LIC of India,
…………………….. Divisional Office,
……………………….

Dear Sir / Madam,

Re: My acceptance to the terms and conditions of the

Life Insurance Corporation of India (Chief Life Insurance
Advisor), Scheme, 2008.
_________

I have carefully read the following Terms and Conditions and the salient
features of the Life Insurance Corporation of India (Chief Life Insurance Advisor),
Scheme, 2008.

The Life Insurance Corporation of India (Chief Life Insurance Advisor),

Scheme, 2008.

A) SHORT TITLE AND COMMENCEMENT :

This Scheme shall be called the Life Insurance Corporation of India (Chief Life
Insurance Advisor), Scheme, 2008.The Scheme shall come into force from 1st
April 2008.

B) DEFINITIONS:

1) In this scheme, unless the context otherwise requires,

a) “Agent” means a person-

(i) who is deemed to have been issued a license under the 1st proviso to
sub-section (1) of Section 42 of the Insurance Act, 1938 (4 of 1938) or
who has been issued a license under sub-regulation 2 of Regulation 3
of the Insurance Regulatory and Development Authority (Licensing of
Insurance Agents) Regulations, 2000 made under sub-section 6 of
Section 42 and sub-section (2) of Section 114 A of the Insurance Act,
1938 and such license is valid; and
(ii) who has been appointed as an agent under rule 4 of the “Life
Insurance Corporation of India (Agents) Rules, 1972”

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 b) “Agents Rules” means the Life Insurance Corporation of India (Agents)
Rules, 1972 as amended from time to time.
c) “A Chief Life Insurance Advisor” (CLIA) means a person authorised under
this scheme to recommend suitable candidates for appointment as Agents
under such terms and conditions by way of an agreement to be executed
between such Chief Life Insurance Advisor and Life Insurance Corporation
of India.
d) “Corporation” means the Life Insurance Corporation of India.
e) “Competent Authority” means the Senior/Divisional Manager in-charge of
the Divisional Office.
f) “Development Officer” means a whole-time salaried employee of the
Corporation belonging to Class II appointed as Development Officer.
g) “Club Rules” shall be the rules as amended from time to time prescribing
the various terms and conditions on which membership to the various
clubs are granted to the agents.
h) “Divisional Manager’s Club Member Agent means an agent of the
Corporation who on fulfilling the conditions of the Club Rules as amended
from time to time and has been granted the membership of “Divisional
Manager’s Club for Agents” and continues to be such member of the
Divisional Manager’s Club.
i) “Zonal Manager’s Club Member Agent means an agent of the Corporation
who on fulfilling the conditions of the Club Rules as amended from time to
time and has been granted the membership of “Zonal Manager’s Club for
Agents” and continues to be such member of the Zonal Manager’s Club.
j) “Chairman’s Club Member Agent” means an agent of the Corporation who
on fulfilling the conditions of the Club Rules as amended from time to time
and has been granted the membership of “Chairman’s Club for Agents”
and continues to be such member of the Chairman’s Club.
k) “Corporate Club Member Agent” means an agent of the Corporation who
on fulfilling the conditions of the Corporate Club Rules as amended from
time to time and has been granted the membership of “Corporate Club for
Agents” and continues to be such member of the Corporate Club.
l) “Financial Service Executive” means a person engaged as per terms and
conditions of the LIC of India (Financial Services Executives) Scheme,
2007.
m) “Review Year” in relation to Chief Life Insurance Advisor shall mean -
i) In the first year of his selection, the period from the date of his selection
to the end of the month in which he completes twelve months as a Chief
Life Insurance Advisor ( hereinafter referred to as the First Insurance
Review Year of such Chief Life Insurance Advisor), and
ii) In the subsequent years of his appointment, every successive period of
twelve months following the completion of the First Review Year.

2. All words and expressions used herein and not defined but defined either in
the Agents Rules or the Club Rules shall have the meanings respectively
assigned to them in those Rules.

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C) ELIGIBILITY CRITERIA:

The applicant should be member of any of the following Clubs for Agents:
1. Corporate,
2. Chairman’s,
3. Zonal Manager’s
4. Divisional Manager’s.

OR

The applicant should be Financial Service Executive having at least 3 years

standing.
OR

The applicant should be a Retired Employee of the Corporation in the Class I,

II and III cadre including who has taken voluntary retirement under Pension
Rules and having LIC agency.

1. AGE:

The applicant should have completed minimum age of 25 years and should
not have completed 65 years of age. ZM I/c can relax the upper age limit in
deserving cases. The Maximum age upto which an applicant can work as a
Chief Life Insurance Advisor shall be 70 years.

2. SELECTION PROCESS:

The applicant fulfilling the above eligibility criteria will be authorized to act as
an Chief Life Insurance Advisor on the basis of an interview by a 3 Member
Committee constituted by the Sr.Divisional Manager I/c of the Divisional
Office. The committee will be headed by an officer not below the rank of
Assistant Divisional Manager and the other members of the committee will be
not below the rank of Administrative Officer. Such selected applicants will
enter into a separate agreement with the Life Insurance Corporation of India
on such terms and conditions as may be defined from time to time. The
agreement would be signed by Marketing Manager or a person authorized by
Sr. /Divisional Manager I/C on behalf of the Corporation and the applicant
would be authorized to act as a Chief Life Insurance Advisor. The contract
would be for a period of Five years and renewable thereafter for a period of
five years or less in case of CLIA attaining 70 years of age. The Competent
authority may terminate this agreement by giving one month’s notice thereof
in writing even if the CLIA has fulfilled minimum performance norms as
specified from time to time. However, the CLIA during this notice period shall
continue to be responsible for the quality of business brought by his
supervised agents.

D) FUNCTIONS OF A CHIEF LIFE INSURANCE ADVISOR:

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 a) Every Chief Life Insurance Advisor shall recommend names of candidates
suitable for appointment as new agents. These individuals, after passing
the necessary pre-recruitment test as specified by Insurance Regulatory
Development Authority (Licensing of Insurance Agents) Regulations, 2000
as amended from time to time, shall be placed under the supervision of
the Chief Life Insurance Advisor.
b) Every Chief Life Insurance Advisor shall make attempt for re-appointment
of terminated agents of the Corporation by motivating them. Such agents
on re-appointment shall be placed under the supervision of the CLIA who
motivated them.
c) The Chief Life Insurance Advisor shall be responsible for Post
Recruitment mentoring, counselling, and performance of the Agents
supervised by him. The Chief Life Insurance Advisor shall also be
responsible for the quality of business and professional conduct of the
agent supervised.
d) Every Chief Life Insurance Advisor shall be responsible for activising the
agent placed under him/her and shall motivate him to perform
satisfactorily.
e) Every Chief Life Insurance Advisor shall help the supervised agent to
perform his duties as per Agents Rules 1972 and IRDA Rules and
Regulations as applicable from time to time.
f) Every Chief Life Insurance Advisor shall perform such other duties as may
be entrusted or assigned to him/her by the Corporation from time to time.

E) OTHER CONDITIONS:

a) The CLIAs appointed from Club Member agents category have to be a

member of Corporate/CM/ZM/DM during the time they continue as CLIA.
b) The Chief Life Insurance Advisor would be required to maintain a
minimum of 5 supervised agents under him at the end of first year as a
Chief Life Insurance Advisor. The number of agents to be supervised at
the end of every year thereafter shall not be less than 5 agents. The
maximum number of agents supervised at any time shall not exceed
twenty five.
c) No credit of the business done by the supervised agents of the Chief Life
Insurance Advisor shall be payable to the Development Officer. The
Development Officer, however, will continue to get credit for business
done by CLIA, in his capacity as an agent if he is under a Development
Officer.
d) No existing agent appointed on or before the date of implementation of
this scheme shall be placed under the supervision of a Chief Life
Insurance Advisor. However, a terminated agent on re-appointment can
be placed under his supervision, if such terminated agent has been
motivated by the CLIA for re-appointment subject to existing provisions in
force.

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 e) In case of Death, Resignation or Termination of a Chief Life Insurance
Advisor, the agents supervised by him may at the sole discretion of the
Competent Authority be either made Direct or shall be allotted to other
Chief Life Insurance Advisor.
f) Where a Chief Life Insurance Advisor in his/her capacity as an Agent is
directed not to solicit or procure New Business under Rule 16(3) of Agents
Rules, 1972 or if his/her Club membership is withdrawn or if any penalty is
imposed that directly affects his/her being an agent / Corporate /
Chairman’s/Zonal Manager’s/Divisional Manager’s Club Member agent of
the Corporation, in all such cases he/she will cease to be a Chief Life
Insurance Advisor till such time he/she is allowed to procure New
business or his/her Club Membership is restored. The agents supervised
by him under such circumstances will be treated as “Direct” or shall be
brought under the supervision of any other Chief Life Insurance Advisor as
decided by the Competent Authority. On reinstatement of the agency or
restoration of the club membership, only those agents who have not been
allotted shall again be brought under his supervision. However, the Chief
Life Insurance Advisor shall not be entitled to any benefits during the
period he ceased to be a Chief Life Insurance Advisor.
g) The allotment will be done by the Sr. / Divisional Manager (I/C) and, in no
case, a supervised agent would remain under a Chief Life Insurance
Advisor for more than seven years. Every supervised agent will become a
Direct Agent on the completion of Seven Agency Years. Before the expiry
of seven agency years of the supervised Agent if the supervised agent
applies for detachment, the Sr. /Divisional Manager I/c depending on the
merits of the case and after recording reasons in writing may at his
discretion detach the agent from the Chief Life Insurance Advisor and
such a detached agent shall become a Direct Agent only and shall not be
attached under a Development Officer or under a different CLIA.
h) No allowance or any benefit shall be payable to the Chief Life Insurance
Advisor for the renewal Premium brought by the agents supervised by
him.
i) The commission under Jeevan Madhur Plan or any such plans specified
by the Corporation from time to time will not be taken into account while
determining the eligible commission brought by supervised agents.

F) FUNCTIONAL PRIVILEGES:

The Chief Life Insurance Advisor shall be authorized to submit Moral

Hazard Reports (MHR) up to a sum determined from time to time in
respect of proposals submitted by supervised agents placed under him.

G) BENEFITS & INCENTIVES:

1. Activisation Allowance

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 On the supervised agent getting license and becoming active, an amount
of Rs.1000/- per supervised agent will be paid.
2. Training Allowance
To enable a Chief Life Insurance Advisor to meet the office-related
expenses caused by the business coming from supervised agents, an
Allowance For Training at the rate of 10% of the First Year Commission
including Bonus Commission earned by the supervised agents shall be
payable to a Chief Life Insurance Advisor subject to his maintaining a
minimum of 5 supervised agents under him, who have completed 12 lives
with at least one lakh fifty thousand rupees of First Year Premium, at the
end of first year as a Chief Life Insurance Advisor. From the second year
onwards as a Chief Life Insurance Advisor, this Allowance for Training
would become payable every year at the rate mentioned above subject to
the Chief Life Insurance Advisor maintaining at least five supervised
agents under him who have completed 12 lives with at least one lakh fifty
thousand rupees of First Year Premium at the end of each year as a Chief
Life Insurance Advisor and subject to the Escalation Clause as mentioned
in Clause (H) of the scheme.

3. Productivity Linked Allowance –

A Chief Life Insurance Advisor shall be paid an Amount as per table

appended below if such a supervised agent completes 12 lives with at
least one lakh fifty thousand rupees of First Year Premium within:

Eligibility criteria for becoming Amount of benefit per supervised

eligible for productivity linked agent
benefit
3 months from the date of 2000
appointment
6 months from the date of 1500
appointment
12 months from the date of 1000
appointment

Rs. 1000/- per supervised agent shall be paid if a supervised agent who
has brought in 12 lives with at least one lakh fifty thousand rupees of First
Year Premium in the First Review Year of the Chief Life Insurance Advisor
continues in the next review year of the Chief Life Insurance Advisor and
completes 12 lives with at least one lakh fifty thousand rupees of First
Year Premium during the year.

4. Mentorship Allowance:

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 A Mentorship Allowance at the rate of 10% of the First Year
Commission including Bonus Commission earned by the supervised
agents shall be payable to a Chief Life Insurance Advisor subject to his
maintaining a minimum of 5 supervised agents under him, who have
completed 12 lives each with at least one lakh fifty thousand rupees of
First Year Premium, at the end of first year as a Chief Life Insurance
Advisor. From the second year onwards as a Chief Life Insurance
Advisor, this Mentorship Allowance would become payable every year
at the rate mentioned above subject to the Chief Life Insurance Advisor
maintaining at least five supervised agents under him who have
completed 12 lives with at least one lakh fifty thousand rupees of First
Year Premium at the end of each year as a Chief Life Insurance
Advisor and subject to the Escalation Clause as mentioned in Clause
(H) of the scheme.

.
5. Club Membership Allowance:

A one time Allowance, as per table appended below, per supervised agent
shall be paid to the Chief Life Insurance Advisor provided the supervised
agent becomes a Club member during the period the agent remains
attached to the Chief Life Insurance Advisor.

Club membership status of the Amount of allowance per

supervised agent supervised agent
Branch Manager’s Club Member 10000
Divisional Manager’s Club Member 20000
Zonal Manager’s Club Member 30000
Chairman’s Club Member 40000
Corporate Club Member 75000

i) 50% of the amount as applicable will be paid every year on such

supervised agent continuing his club membership
ii) In case the supervised agent moves to a higher club the amount
specified against the higher club will be payable to CLIA.

6. Allowance for MDRT/COT/TOT

An amount, as specified below, per supervised agent shall

be paid to the Chief Life Insurance Advisor every time he qualifies as a Member
of the Million Dollar Round Table (MDRT)/Court Of The table (COT)/Top Of The
Table (TOT), on commission basis only, during the period the agent remains
attached to Chief Life Insurance Advisor.

Eligibility criteria Amount paid per supervised agent

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 MDRT 10000
COT 30000
TOT 60000

H) Escalation Clause:

The Chief Life Insurance Advisor shall bring in minimum Total First Year
Premium as shown below from his supervised agents taken together
depending upon the year of joining as a CLIA and this minimum expected
First Year Premium which will be brought in by the CLIA will show a
growth of at least 10% (i.e. Rs. Seventy Five thousand only) for each
subsequent review year. If the CLIA fails to show the required growth of
First Year premium every year, no allowance except Activisation
allowance shall be paid for the year. The group minimum First Year
Premium for each year of the scheme shall be as follows:

Year Of Joining As CLIA Minimum premium to be

brought by the group of
supervised agents of the CLIA
during Review Year
2008-2009 Rs.7,50,000
2009-2010 Rs.8,25,000
2010-2011 Rs.9,00,000
2011-2012 Rs.9,75,000
2012-2013 Rs.10,50,000

I. Instructions and interpretation:

1. Any matter connected with the Scheme shall be regulated by

administrative Instructions/directions issued by the Chairman
from time to time.
2. Where a doubt arises as to the interpretation of any of the
provisions of this Scheme, the matter shall be referred to the
Central Office for its consideration and the decision of the
Chairman shall be final and binding on the Chief Life Insurance
Advisors.

ACKNOWLEDGEMENT

I, _______________________, son of ___________________ aged_______,

Agency Code No. ___________, Branch____________,
Division_______________ do hereby affirm that I have carefully read the terms
and conditions and the salient features of the above the Life Insurance
Corporation of India (Chief Life Insurance Advisor), Scheme, 2008 and I do
hereby give my consent to act as a Chief Life Insurance Advisor as envisaged in
the above the Life Insurance Corporation of India (Chief Life Insurance Advisor),
Scheme, 2008. I further confirm that I shall abide all the administrative

11
instructions/directions/modifications/additions that will be made to the Scheme. I
also further agree and consent that Corporation shall have the right of first lien
and charge on all moneys payable to me as a Chief Life Insurance Advisor or to
my heirs for recovery of all debts due from me to the Corporation and that the
Corporation shall apply any such moneys directly towards realization of such
debts. I will further ensure that nothing prejudicial to the interest of the
Corporation is done by me while performing my duties as the Chief Life
Insurance Advisor.

Dated at __________________ on the ____ day of _______________ 20_ _.

(……………………………..)

Signature
In the presence of

Sign………………………..

NAME___________________________________

ADDRESS_______________________________

______________________________

________________________________

_________________________________.

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 CLIA/Annexure III/Cir.3/2008

Ref : Date :

____________________
____________________
____________________
____________________

Dear Sir,

Re : Your authorization to act as Chief Life Insurance Advisor

We acknowledge receipt of your agreement on stamp paper of appropriate

value signed on ___________ with regard to the above.

We are pleased to inform you that you have been selected for
authorization to act as Chief Life Insurance Advisor with immediate effect.

Your authorization code number (ACN) is

under __________________ Branch, which should be used in all future

correspondence.

You are allowed to recommend names of candidates suitable for

appointment as agents and to supervise them thereafter within the geographical
area of __________________ Division.

You are requested to start your activities and functions as stipulated in

CLIA Scheme 2008 immediately.

Should you need any information or clarification, please contact the

Manager (CLIA), ________________ Division or your Chief/Sr./Branch Manager
(I/C).

Wish you success in your endeavor.

Yours faithfully,

MARKETING MANAGER

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