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 Executives to 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 Bachelor’s 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. Category Age limit in years

No.
(1) (2) (3)
(1) Member of a Scheduled Caste or a 40
Scheduled Tribe.
(2) Member of OBCs (other than those in 38
creamy layer).
(3) Ex-serviceman 35, increased by the
number
of years of service in
the 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 one
officer 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, to
be 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 for
issue 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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12. Minimum Business Parameters

Each Direct Sales Executive should procure Minimum New Business

Eligible First Year Premium as under:

PERIOD 2009-10 2010-11 2011-12 REMARKS

UPTO NIL 1,12,500 1,27,500 a) If in any Qr. he fails to bring

30/06 MBG his fixed remuneration will
be reduced proportionately in the
UPTO30/09 66,000 2,25,000 2,55,000 next qr.

UPTO30/12 1,65,000 3,37,500 3,82,500 (b) Any Qr. he exceeds MBG,

UPTO31/03 2,64,000 4,50,000
incentive is also paid in the first
month of next Qr.
5,10,000 (c) Overall performance will be
reviewed every quarter by BM
and every year by RM.

(d) If DSE fails to complete his

MBG for the year he gets
terminated.

Chairman may fix revised Minimum Business parameters, as and when

required.

13.Eligible Premium:

Eligible Premium means Scheduled First Year Premium Income as is

applicable to the Development Officer of the Corporation and as may be
specified by the Corporation from time to time in respect of the business
secured by the Direct Sales Executives and adjusted in the relevant period.
The Chairman is authorized to revise the proportion, as and when required,
depending upon market condition, performance in New Business, etc.

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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 Total

Reimburse Remuneration
ment Per Month (In
Rs)
First Year 8500 1000 500 10000
Second 9500 1200 600 11300
Year
Third 10500 1500 700 12700
Year
The Above said remuneration will be subject to achieving the Minimum
Business 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 Cash
Incentive 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 earned
leave 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 suspended
during 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. Interpretation
The 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.