goibs 2007 revised

PRESENTATION ON G.O.I.B.S. 2007

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

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.


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


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)


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.


New Definitionsg Productive Agent.g Agent who completes 20 Lives in the

agency year falls during the Appraisal Yr.(OR)

g Agent who completes 12 Lives with SFYPI of Rs.1,00,000.

(OR)g Agent who completes 15 lives with SFYPI

of Rs.70000/-


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If 80% credit of SFYPI was allowed, then only the 80% of Credit of SFYPI shall be withdrawn.


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.


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.


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%


GRADED CREDIT

Tenure of the Agent as atbeginning of Appraisal Credit to be allowed

7 Years or Less 100 %

8 to 10 Years 75 %

11 Years and above 60 %


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.


Basic IB Stipulation BIB %

QP in excess of 6.0 Times AR 12.50 % +





QP in excess of 15.0 Times AR 0.25 %


Modifications of BIB Performance based

on Cost cal. on Qualifying Premium.

Growth in SFYPI No. of Lives Assured Productive Agents Deemed Productive

Agents.

Recruitment of Agent

Managing Agency Organisation

Specified Plans MDRT/COT/TOT

Corp. Club Agents Rural Credit


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

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)


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)


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


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.


No. of Lives

Amount of BIB Rate of IncreaseNot more than 50,000 1% of BIB

Between 50,001- 2 Lac 500 + 0.66% of BIB above 50,000

Above 2,00,000 1490 + 0.50% of BIB in excess of 2,00,000


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%.


No. of LivesExample – 1. No. of Lives : 1000, Prod. Agents : 15BIB : 75380, Rate of Increase = Rs 500 + Rs 167.50 (0.66% of 25380)

Amount of (1000-800) X 667.50Increase 30 = Rs. 4005/-


No. of Lives

Example – 2. No. of Lives : 450, BIB : 25000, Rate of Decrease = 10% of BIB

Amount Decrease = Rs. 2500/-


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.


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%.


Maximum DebitThe Maximum Debit under

1. Growth of SFYPI2. No. of Lives3. Productive Agents

Shall not exceed 24% (or) Rs.200000 whichever is less


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.


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.


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.


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.


Incentive for Managing Agency Organisation

Basic Condition: Minimum No. of Agents at least 50or more as at the end of apprl. Year sub. to % ofProductive Agents.

No. of Ag. as atthe end of Apprl.

% of productiveAgents

Amount perAgent

100 + 75% Rs.400/-100 + 60 % Rs.300/-100 + 50 % Rs.200/-100 + 40 % Rs.150/-

75 to 99 50 % Rs.100/-50 to 74 50 % Rs.75/-


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/-


MDRT / COT / TOT &Corporate Club Agent

MDRT : Increase in IB @ Rs. 2000 /Agt. (Qualified in the first 3 yrs of recruitment on commission basis)

C.Club: Increase in IB @ Rs. 5000 / Agt

COT : Increase in IB @ Rs. 7500 / Agt

TOT : Increase in IB @ Rs. 10000 / Agt

Maximum Allowed is 40,000for kalamurasu ......tsr

Rural CreditIF 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


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 pmNon IB earners : Not earned any IB but

working within expense limitEligible premium not less than 7.50 lakhsNet addition of agents Atleast 3.


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.


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.


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.


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.


goibs 2007 revised

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