Business Associate

Kotak Life Insurance

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Terminology
 Recruitment Period: Period between BA code issuance and
start of goal sheet

 CPI: Collected Premium Income - weighted received

Premium

 BDA: Business Development Allowance

 CPI: An agent who has sourced at least one policy in that

month as per terms and conditions given later

 Activisation % = ________CPI _______

Beginning PHF of the
BI month
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 Goal sheet

BA Goal sheet ~ 36 Lacs pa

High Performance period

Recruit & Build Consolidate & Expand &

Grow Prosper
Recruitment Period
BA Joins

FOS

Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
h st h nd h rd h th h th h th h th h th h th h th h th h th
1 2 3 4 5 6 7 8 9 10 11 12

Goal sheet starts

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Goal sheet allocation
First thing to do after BA Code generation is, to identify the BA’s
Goal sheet.
BA Goal sheet starting month can be identified as follows:
BA Appointment date Goal Sheet Starting Month
1st to 15th 3rd month from the joining month
16th to 30th/ 31st 4th month from the joining month
Example
BA Appointment date Goal Sheet Starting Month
2nd Aug October
17th Aug November

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Goal Sheet : Pre-ponement

 The goal sheet of a BA can be preponed .

 Once preponed this will be not be reversed later.

 In such a case the BA will get the scheduled

payouts from the first month itself.

 Contact your sales supervisor for details.

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Sample BA Goal sheet

For Details, please refer to the Goal sheets

For communication purposes please refer to

the CPI figures

Goal Sheet
Attachment1

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BA Payouts
 Payouts to BA s are based on the achievement of their monthly
goal sheet based on First Year Received Premium (CPI)
generated by their team.

 First year modals received will be added in the total received CPI
for the month .

 Only converted cases ( issued ) will be considered for payout

computation .

 BA Payout Computation will start post the expiry of the free look
period ( approx 15th of the next month ) & will be paid by the end
of the next month.
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BA Payout Categories
Fixed Infrastructure Payout
 Paid on Achieving Goal Sheet
 25,000 per month
 30,000 to 75,000 per month based on slabs

Variable Payout
 Paid on the Premium Slab
 Slab wise starting @ 2%
 5% + on 10 Lac + Pm

Activisation Allowance
 Paid on No of Active Agents( Slabbed)
 Avg 2500 Per Month BA.

Recruitment Support : To be announced.

 Business Based : 10,000 per Month.
Case on Code
 Rs 1,000 per qualifier.

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Variable Payouts
Business Override : Up to 5.00%* of Team business every month!!!

Monthly CPI Achievement % Payout PM

0 to 49000 NIL
50000 to 149000 2.0%
150000 to 299999 3.0%
300000 to 499999 4.0%
500000 to 999999 4.5%
10 Lacs Plus 5.0%

Variable payouts
•This will be paid monthly as per the above slabs.
•Above slabs are % age of premium and will be based on commission
depending upon SM scheme
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Fixed Payout (Infrastructure Support)

25,000 and potential to earn Up to 75,000/-* every month !

Monthly CPI Achievement Monthly Payout

Less than 49.99 %

Achievement NIL
More than 50% Goal Sheet % Achievement of GS * Rs 25000 or Rs
achievement 25000 whichever is less.
5 Lac to 6.49 Lacs Rs 30000
6.5 Lacs to 7.49 Lacs Rs 35000
7.5 Lacs to 9.99 Lacs Rs 50000
10 Lacs Plus Rs 75000

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Fixed Payout - Example

BA Appointment date 10th Feb

Goal sheet starting month 1st April
Goal sheet Target 95000
Fixed Payout Calculations
Goal sheet achievement %age achievement Fixed Payout eligible
1st Case 40000 42% Nil
2nd Case 75000 79% 19737
3rd Case 125000 132% 25000
4th Case 500000 As per the slab 30000

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Activisation Allowance : Payout Policy
 Gate Criteria of 1 code per month .

 BA not achieving 1 code will not be eligible of the BDA

payout .

 BAs not meeting monthly target of one code per month but
achieving 4 codes in a calendar quarter will be eligible of the
entire accrued payout.

 In this case the BDA payout will happen at the end of every
calendar quarter

 Active Agent definition same as agency.

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Activisation Allowance :
BDA is shown here for reference:
No of CLAs Amount
3 3000
4 4000
5 5000
6 6000
7 7000
8 8000
9 9000
10 10000
 An additional payout of Rs 1000 per advisor on qualifying for Case on Code.
 BDA slabs are declared at beginning of each Quarter/Month & paid on a monthly
basis .
 BDA is paid on the basis of No. of active advisors in a particular month from BA
Team

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Case on code Bonus
BA gets Case on code Payout, Rs.1000-, for every advisor
becoming active within 30 days of getting their code
Case on code Criteria

Advisor licensed between Qualifying Time for Coc by Max. Days

1st – 15th of each month 15th of next month
45
Advisor licensed between Qualifying Time for Coc by 30
16th– 30th/31st of each month 30th/31st of next month
Min. Days

Cases that will be considered for calculating case on code bonus must be of a
minimum CPI of:
Rs 1500* 2=3000 for monthly mode with ECS.
Rs 1500* 4=6000 for monthly mode with non-ECS.
Rs 9000 for half yearly mode
Rs 18000 for annual mode
Rs. 50000 for single premium cases
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 Quarterly Correction
 Quarterly Average Correction: Reward for over achievement of quarterly goal
sheet by 125% despite not meeting mthly targets.

 What is Quarterly Correction payout?

 An opportunity for the BA to earn more Infrastructure support by performing

well each quarter.

 Chance to earn back Infrastructure support payout because of non

performance earlier in the quarter.

 How much can be the Qly Correction Payout?

 Assumption is that a BA will receive Rs. 25,000 per month as QCP.
 Thus, actual QCP will be Rs. 75,000 – Actual payout in the qtr.

 When is it paid?
 The Correction will be calculated and paid only at each calendar quarter end

.i.e. AMJ, JAS, OND & JFM

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Quarterly Correction – Example

Month-> April May June Complete Quarter

GS Target 95000 137000 161,000 3,93,000

GS Achieved. 38000 191800 241500 491250

Goal sheet 40% 140% 150% 125%

achievement.
Applicable 0 25,000 25,000 Correction
fixed payout Applicable:
according to 75,000-
slab. (25,000+25,000) =
25,000

Rs. 25000 Additional Payout Applicable on account of Quarterly correction

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Quarterly Correction – Example 2
In cases where BA Earning is more than 75000 in quarter than he is not
eligible for Quarterly correction. This can be understood from the following
example
Month April May June AMJ Qtr
Goal sheet Target 95000 137000 161000 393000
Goal Sheet Achvd 71250 45000 1000000 1116250
Amt Applicable 25000 25000 75000
% Goal Sheet Achvd 75.0 32.8 621.1 More than 125 %
Fixed Payable 18750 Nil 75000 QC not applicable

In case a person’s goal sheet begins after a month in the calendar quarter
say in February for the quarter Jan-Mar then the quarterly payout is
applicable for the difference between Rs 50,000 and the payout received
for one month. (Since the other month the person will not have received
any fixed payout and hence will be applicable for the quarterly correction.)
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BA Payout : Example

Goal Sheet Target 200000

Parmeters Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5
BA Achievement 100000 150000 350000 500000 1000000
% GS Achvd 50.00 75.00 175.00 250.00 500.00
Goal Sheet Applicable 25000 25000 25000 30000 75000
Fixed Payout 12500 18750 25000 30000 75000
Variable Applicable 2% 3% 4% 4.50% 5%
Variable Amt 2000 4500 14000 22500 50000
Active Agents 3 4 5 2 10
Amt Payable 3000 4000 5000 0 10000
Case on Code achievers 2 3 4 2 7
Case on Code Amt 2000 3000 4000 2000 7000
Total Payout 19500 30250 48000 54500 142000

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What is there for you ?
 Earning Potential
Highest Earning potential in the Industry !!!
An average Performer can earn 5- 6 lacs pa
Translates to more than 50 K per month .
 Career Progression

Opportunity both inside and outside the company .

Only company which provides both options !!!
 Manpower Support

Only Company to provide a resource to help expand business

Best Payouts in the industry !!!

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Our Expectations

 Abilityto build distribution fast.

 Willing to invest time in the business .
 Upfront recruitment of 10 Advisors
 Minimum 200 – 300 sq feet of office space
 Minimum 2 phone lines
 One Computer
 Good standing in the market
 Experience preferable in the Financial Services

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 Thank You!

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