Career as LIC Agent
By
K.SANKAR
SBA
LIC OF INDIA
Cell NO.9791242424
STAND OUT FROM THE CROWD
This Career Opportunity is
Not for Everybody,
It is only for those who
Want to be Somebody.
Job Profile of LIC Agent
The main job of LIC Agent involves:
• Prospecting:
Identifying
the
prospective customers and fixing
appointment.
• Need Analysis: Identifying the needs
and getting the prospect agree that
need exists. (i.e. Family Income
Provision, Children Education and
Marriage Provision or Retirement
Income Provision.)
Job Profile of LIC Agent
• Plan Presentation: Suggesting suitable
plans that fulfil the needs as agreed by
the prospect.
• Closing the Sale: Convincing the
prospect that you have suggested the
best possible solution for his needs
and ask for the order.
• After Sales Service: Provide efficient
after sales service and claims
settlement.
Attributes you should possess
To become Successful LIC Agent:
• You should be outgoing and love to meet
people.
• You should be ambitious to start your own
Business.
• You should have Good Communication
Skills.
• You should have lot of Perseverance.
• You should be willing to work hard with lot of
Dedication and Devotion.
• You should be willing to accept rejections as
stepping stones.
Benefits of LIC Agency
as a Career
• LIC agency is considered today as the
highest paid profession in the world.
• It also provides you with the Royalty Income.
• You can start your own Business with less
Capital Investment.
• You have freedom to set your own working
hours.
• You have the opportunity to earn as per your
potential.
• Your work gets easier and less demanding
as your business grows.
Market Potential
1.
•
•
•
•
•
Indian Insurance Market:
It is one of the least Insured Market in the world.
Out of total insurable population only 40% are
covered till today.
These 40% also are also not adequately covered.
Only 20% of total agency force is working as
Professionals, and these 20% brings 80% of total
life Insurance business.
We will help build your career as a professional
agent and make sure that you will be among these
top 20% agents.
Market Potential
2. Growth Opportunities:
a.
b.
c.
d.
e.
f.
g.
h.
Low Insurance Penetration.
Low Insurance Density.
Low share of world premium.
High per capita Savings.
Increase in working population.
Growth in personal Income.
High Consumer Awareness.
Strong LIC brand.
Market Potential
a. Low Insurance Penetration:
•
•
Insurance penetration is measured by
Premium as a percentage of GDP.
We will come to know about the
potential when we compare the
difference in penetration level in India
with other countries of the world.
Country
Penetration
(%)
Taiwan
13.90
South Africa
10.20
Hong Kong
10.10
Japan
8.80
United Kingdom
8.70
Finland
7.70
South Korea
7.00
France
6.20
Switzerland
5.50
Singapore
4.30
India
3.40
Source: Swiss Re, Sigma 03/2012
The penetration level
in India for the year
2011-12 is about 24%
of Taiwan, 33% of
South Africa and 34%
of Hong Kong.
The above figures
show that there is
tremendous potential
available in India to
match the figures of
Asian
and
other
countries
of
the
world.
Market Potential
b. Low Insurance Density:
• Insurance Density is the ratio of
premium to total Population.
• We will come to know about the
potential when we compare the
difference in Insurance Density in
India with that of other countries of
the world.
Country
Density in
USD
Switzerland
4421
Japan
4138
Hong Kong
3442
United Kingdom
3347
Taiwan
2757
France
2638
Singapore
2296
United States
1716
South Korea
1615
India
49
World Average
229
Source: Swiss Re, Sigma 03/2012
Insurance Density for
the year 2011-12 in
India is just 21% of the
world average and
only
1.11%
of
Switzerland.
There is huge potential
available just to reach
the world average and
to reach the figures of
Asian
and
other
countries the scope is
phenomenal.
Market Potential
c. Low Volume of Life Insurance Premium:
Rank
Country
Market
Shar
e
1.
USA
20.46%
2.
Japan
19.97%
3.
UK
8.00%
4.
France
6.65%
5.
China
5.12%
6.
Germany
4.33%
7.
Italy
4.00%
8.
South Korea
3.01%
9.
Taiwan
2.44%
Looking at the
very low volume
of life insurance
premium of India,
we can assess the
available potential
of
Indian
Life
Insurance Market.
Source: Swiss Re, Sigma 03/2012
10.
India
2.30%
Market Potential
d. High per capita Savings:
• Indian household saving in financial sector
is 32% of gross domestic savings for the
year 2007-08. The share of life Insurance
premium was 17.9% of gross house hold
savings.
• Indian house holds saves more than those
in other emerging markets like China and
Brazil. The corresponding house hold
savings in Brazil are 5%, China-15%, UK2%, USA-1% of gross domestic savings.
(Source: “National Income Statistics,” July 2010, CMIE).
Market Potential
e. Increase in working population:
• India has about 40% of young population at
present i.e. age group 20 to 49 years. This is
expected to grow to 45% by the year 2020. The
income level of this group is rising and with
increasing life expectancy and concept of nuclear
family the need for life insurance will also increase.
• Research by Morgan Stanley shows that India’s
working-age population will increase by 136 million
by 2020. (China’s working-age population, by
comparison, will grow by 23 million.)
The expected increase in young working
population shows the potential available in India
for Life Insurance Business.
Market Potential
f. Growth in personal Income:
•
•
•
•
As per report of National Council of Applied
Economic Research (NCAER) 2009-10:
There are 28.4 million families with incomes
between Rs 2 lakh and Rs 10 lakh per annum.
(This is as per the World Bank definition of
middle class.)
The number of such households was 4.5
million in 1995-96 and 10.7 million in 2001-02.
These households are expected to grow 4
times in next 10 years.
The report said that two thirds of the Indian
middle class is to be found in urban India.
Market Potential
f. Growth in personal Income:
Report on the savings pattern states that:
83% save for emergencies,
81% for Children’s education
69% for old age,
63% to meet future expenses towards
marriages, birth and social ceremonies.
The above pattern indicates tremendous
scope for life Insurance products.
Market Potential
f. Growth in personal Income:
As per report of Confederation of Indian Industry
(CII) and Ernst and Young in September 2010, The
projected per capita GDP of India is expected to
increase from `18,280 in FY 2001 to `1,00,680 in FY
2026, which is indicative of rising disposable
incomes.
A recent study by McKinsey also predicts that
India’s economy will grow fivefold in the next 20
years.
The demand for insurance products is expected to
increase in light of the increase in purchasing
power.
Market Potential
g. High Consumer Awareness:
•
•
•
Splitting of joint families, absence of social
security scheme and opening up of Insurance
sector has contributed to increased awareness
about life Insurance.
Rigorous advertisement by 24 life Insurance
companies has made people realize about
importance of Life Insurance.
The total First year Premium of life insurance
industry has increased from `9,707 crores in the
year 2000-2001 to `1,25,826 Crores in the year 201011, showing a compounded annual growth of
29.20%.
Market Potential
g. High Consumer Awareness:
• As per report of BCG (Boston consulting group) and
FICCI of April 2011 “India Insurance: Turning 10,
Going on 20”, it is estimated that life insurance sector
will grow at the rate of 20% to 22% during the next 10
years i.e the estimated premium during the year 20202021 will be in the range of `15 lakh crores to ` 20 lakhs
crores.
At present India is ranked 10th in global life insurance
industry with market share of 2.30%. By the year 2020
it is likely to be one of top three life insurance markets
behind China and USA, it will overtake the Japan,
British, France and Germany markets.
Market Potential
h. Strong LIC Brand:
You will be associated with one of the
leading Life Insurance Company of
the world.
The brand image of LIC of India is
huge, people in India identifies life
Insurance as LIC only.
Thus selling life Insurance policies for
LIC of India is much easier.
Market Potential
Market Share of LIC of India as on 31/03/2012 is as under:
First Year
Premium
in Crores
Market
Share
Number of
Policies
Market
Share
LIC of India
81,513
71.36%
3,57,50,763
80.90%
All 23 Private Companies
32,717
28.64%
84,42,021
19.10%
Total
1,14,230
4,41,92,784
The above figures shows dominance of LIC of India
even after 12 years of opening of the Insurance sector
to private companies.
Summary of Market Potential
•
•
•
•
•
•
•
•
•
The least Insured life Insurance Population,
Paucity of Professional Agents,
Low Insurance Penetration and Density,
Low Volume of Life Insurance Premium,
High rate of personal savings,
Young working population,
Burgeoning Middle and Higher income class,
Rising Insurance awareness and
Strong Brand image of LIC of India
All these positive aspects provide you with
tremendous opportunity to build your career
as a Professional LIC agent.
Remuneration
• The remuneration will be paid to you in the
form of Commission as percentage of
premium collected through the policies sold
by you.
• It is not a one time commission on a sale
made by you.
• It provides you the royalty income through
out the term of policy. As long as
policyholder pays the Premium you will get
the commission.
• Moreover this commission is hereditary i.e. it
will be paid to your nominees even after your
death.
Remuneration
The Commission rates on regular
premium policies are as under:
• First year Commission
: 4% to 25% depending
up on the type & term of the policy.
• Bonus Commission
: 40% of first year
commission.
• Renewal Commission:
2nd and 3rd Year of Policy : 2% to 10% depending
up on the type & term of the policy.
4th year onwards
: 2% to 6% depending
up on the type & term of the policy.
Remuneration
Example of Commission on Endowment type
of policy of Term 15 years and above:
• 1st Year Commission
: 25% of Premium.
Bonus Commission
: 40% of first year
Commission (i.e. 10% of Premium)
Total 1st Year Commission: 35% of Premium
• Renewal Commission:
2nd & 3rd Year of policy : 7.5% of Premium
4th Year onwards
: 5% of Premium
Your Expected Commission as per Endowment
Commisison rates will be as under for Next 5 years:
Expected Commission
Expected
Premium
1st year
12,00,000
4,20,000
24,00,000
36,00,000
48,00,000
60,00,000
TOTAL
2nd year
3rd year
4th year
5th year
90,000
90,000
60,000
60,000
8,40,000
1,80,000
1,80,000
1,20,000
12,60,000
2,70,000
2,70,000
16,80,000
3,60,000
21,00,000
4,20,000
9,30,000 15,30,000 21,90,000 29,10,000
As Years pass by your Renewal Commission keeps on
increasing thereby assuring you a pension for the next
20 to 25 years when you stop working OR
to your family in event of your death.
Remuneration
We will make sure through
our meticulous training that
your earnings should be as
per the chart shown,
but that requires willingness
on your part to take lot of
physical pain.
Club Memberships
Club Membership is the
recognition bestowed upon
the agents to increase their
status in the society and in
the Corporation.
Club Memberships
•
•
•
•
•
•
Following are the levels of club membership
depending up on the Business performance:
Distinguished Club Member.
Branch Manager’s Club Member.
Divisional Manager’s Club Member.
Zonal Manager’s Club Member.
Chairman’s Club Member.
Corporate Club Member.
Club Memberships
1.
2.
3.
4.
5.
6.
Following additional benefits are given over
and above the commissions’ payable:
Office Allowance to maintain your own
office.
Telephone/Mobile bill reimbursement.
Reimbursement of Sales Promotional Gift
items.
Interest free advance for purchase of
Car/Motorbike.
Interest free advance for purchase of office
equipments.
Interest free advance for Training.
Club Memberships
7. Interest free Festival Advance.
8. Housing loan at concessional rate of
interest.
9. Term Insurance and Mediclaim benefits.
10. Guest house facility throughout India at
concessional rates as applicable to
employees.
11. Annual Convention.
12. Attestation authority.
Club Memberships
The
total
monetary
equivalent of all above
benefits ranges from `5,500
to `5,50,000, depending up
on
level
of
Club
Membership.
Gratuity
Agents are entitled to get the gratuity at
age 60/65 years after serving for
minimum 15 years.
At present the Maximum Gratuity
amount payable is `2,00,000 depending
up on the amount of renewal
commission paid during last 15 years
before age 60.
International Recognition
from MDRT
• Founded in 1927, the Million Dollar Round Table
(MDRT), The Premier Association of Financial
Professionals, is an international, independent
association of nearly 36,000 of the world's leading life
insurance and financial services professionals from
more than 430 companies in 78 countries.
• MDRT members demonstrate exceptional professional
knowledge, strict ethical conduct and outstanding
client service.
• MDRT membership is recognized internationally as
the standard of sales excellence in the life insurance
and financial services business.
International Recognition
from MDRT
• To qualify for the membership of
MDRT agents have to earn the
prescribed First Year Commission
excluding the Bonus Commission
OR brings prescribed First Year
Premium during the Calendar year.
International Recognition
from MDRT
There are three levels of Membership with criteria for MDRT 2015:
Criteria
First Year
Commissio
n
First Year
Premium
MDRT
Basic
` 8,45,300
` 33,81,200
2.
Court of the Table- COT
3 Times
MDRT
` 25,35,900
` 1,01,43,600
3.
Top of the Table -TOT
6 Times
MDRT
` 50,71,800
` 2,02,87,200
Sr.
No.
Membership
1.
International Recognition
from MDRT
Through our training
process we will make sure
that you will qualify for
Basic MDRT by the end of
3rd year of your agency.
First Year Commission of Top 10
TOT-2013 Qualifiers from LIC
Rank
Name
Branch
First Year
Commission
Excl. Bonus
Commission
1.
Shri BHARAT V PAREKH
Nagpur
1,64,59,383
2.
Shri RAVINDAR JETHANI
Mumbai
1,28,52,004
3.
Smt HEENA HITESH SHAH
Mumbai
1,22,86,595
4.
Shri RAJESH K BHONSALE
Mumbai
95,34,779
5.
Smt SANGEETA P PODDAR
Mumbai
79,56,912
6.
Smt SHYAMLATA S PODDAR
Mumbai
71,20,811
7.
DR. BALWANT SINGH CHIRANA
Delhi
70,64,505
8.
Shri AUTI DATTATRAY JAYRAM
Mumbai
70,14,830
9.
Smt REENA GUPTA
Bhopal
66,55,529
10.
Smt SANGEETA MAHESHWARI
Indore
59,29,266
Profile of LIC of India
Reach:
• Central Office: Mumbai
• 8 Zonal Offices: Mumbai, Delhi, Kolkatta,
Chennai, Bhopal, Kanpur, Hyderabad and
Patna.
• 113 Divisional Offices throughout country.
• 2048 Branch Offices at various places.
• 1202 Satellite Sampark Branches.
All the branches are connected by wide area
network, this ensures payment of Premiums
anywhere across the country.
Profile of LIC of India
Vide Range of Products:
We have more than 50 different
products catering to the differing needs
of all segments of the society.
These are basic insurance plans (whole
life, endowment and money back),
Term Assurance Plans, Unit linked
plans, Pension Plans, Health plan,
Variable Insurance Products etc.
Profile of LIC of India
Awards won by LIC of India during 2011-12:
1. Readers Digest Trusted Brand – Platinum Category
2. Business Super brands 2010-11
3. Asian Leadership Awards – Asia’s Most Preferred Brand in
Insurance
4. CNBC TV 18 India’s Best Bank and Financial Institution Award –
Best Insurance Company
5. Most Trusted Brand in Insurance Category by ET Brand Equity
6. CNBC AWAAZ Storyboard Consumer Awards- Consumer’s
Trusted Choice Award
7. CNBC AWAAZ Storyboard Consumer Awards- Most
Recommended Financial Services Brand of the Year ( Non
Banking)
8. Dainik Bhaskar Group- India Pride Award
Profile of LIC of India
Awards won by LIC of India during 2011-12:
9.
10.
11.
12.
13.
14.
15.
16.
Bombay Chamber of Commerce & Industry – Good Corporate
Citizen Award
ABCI Award for House Magazine in Magazine Category
Preferred Brand of Life Insurances by Dainik Purvoday NE
Consumer Awards 2011
Star News Brand Excellence Award- Customer Centric Band
Award
Outlook Money - Best Life Insurer Award
Global Award for Brand Excellence 2011 by World Band
Congress
Bengal’s Best 2011 in Insurance Category – Anandbazar
Patrika’s Brand Watch
Organization of the Year – Top Ranker’s Management
Consultants
Profile of LIC of India
Awards won by LIC of India during 2011-12:
17.Best BFSI Life Insurance Company 2011 by Business & Economy
ICMR-BFM
18.Most Successful Pioneer in Micro Insurance by Amity School of
Insurance, Banking & Actuarial Science
19.Golden Peacock Innovative Product Award for Jeevan Arogya
20. Middle East Insurance Forum (MEIF) Institutional Excellence Award
to LIC International (BSC Bahrain)
21.My FM Stars of the Industry Award for Business Leadership Award
22.Special Award for Consumer Service ( Corporate) by Consumer
Association of India
23.Indy’s Award for Best Corporate Film of the Year, Campaign for
Change, Women’s Insurance TVC
24.Indy’s Award for Most Creative Ad (Print) in BFSI
25.Indy’s Award for Best in house magazine ‘Yogakshema’.
Profile of LIC of India
Our social responsibility:
LIC offers life insurance protection under group
policies to various groups such as employeremployee, co-operatives, weaker sections of society
etc. and insurance coverage to people below poverty
line at subsidized rates under social security group
schemes like ‘Janashree Bima Yojana’ & ‘Aam
Aadmi Bima Yojana’.
The scheme ‘Shiksha Sahayog Yojana’ is a free addon scholarship benefit that is available for the
children of the members who are covered under
Janashree Bima Yojana.
Profile of LIC of India
Golden Jubilee Foundation:
LIC, as a part of its Corporate Social Responsibility, formed a
Trust - ‘LIC Golden Jubilee Foundation’ in the year 2006, with the
objective of promoting education, health, relief of poverty or
distress and advancement of other objects of general public
utility.
As on date LIC has put in a Corpus of Rs. 90 Crores towards LIC
Golden Jubilee Foundation and interest is distributed for various
Charitable Purposes. So far it has sanctioned projects worth of
Rs. 22.35 crore.
LIC Golden Jubilee Scholarship Scheme provides scholarship to
economically weaker sections of the society to pursue higher
education at the rate of Rs. 100000/- per year for 10 students per
Division till they complete their graduation/ professional course.
Approximately 2650 students have benefited from the Scheme so
far.
Valuation Results of LIC
For the year 2011-12
Valuation Surplus after Tax
Govt. Share @ 5%
95% to be distributed to Policy Holders
: ` 25,624Crores
: ` 1,281Crores
: ` 24,343 Crores
(Investment by Govt in LIC in 1956 is ` 5.00 crores only)
Total Number of Policies in force
(More than Population of Many Countries)
: 29.16 Crores
Total Premium Income
: ` 2,02,802 Crores
Total Gross Income for the year
: ` 2,87,315 Crores
(The daily collection of Corporation is ` 555Crores)
(Four Times the income of leading Bank in India)
Valuation Results of LIC
For the year 2011-12
Total Number of Claims Settled
: 1,85,70,000
Total Amount paid towards claims
: ` 66,023Crores
Outstanding Death Claims
(94.34% of Non Early Death Claims settled within 15 days)
: 1.22% only
Outstanding Maturity + Survival Benefit Claims
: 0.50% only
(93.19% of Maturity/SB claims settled before due date)
First Year Premium Income
(More than the total amount of claims paid)
: ` 81,514Crores
Valuation Results of LIC
For the year 2011-12
Total Life Fund
: ` 12,83,990 Crores
Total Assets of Corporation
: ` 14,17,891 Crores
Investment in Govt/Infra/Social Sector
: ` 8,19,835 Crores
LIC’s Market Share as on 31/03/2012
: 71.36% on FYPI
: 80.90% on Policies
(Remaining 23 private companies Market share: 28.64%)
Govt. Guarantee for
LIC Policyholders
The sum assured of all policies issued by LIC
of India including any bonuses declared in
respect thereof and, subject to the
provisions contained in section 14 the
amounts assured by all policies issued by
any insurer the liabilities of which have
vested in the LIC of India under this Act, and
all bonuses declared in respect thereof,
whether before of after the appointed day,
shall be guaranteed as to payment in cash by
the
Central
Government.
Under
-Section 37 of LIC ACT, 1956
Advantages of
Association with LIC
• You will be associated with number one life
Insurance of India and one of the leading life
Insurance companies of the world.
• With above financial position and Govt
Guarantee selling policies of LIC will be
much easier.
• Barring five companies all other 18 private
life Insurance companies are in losses as on
31.03.2012.
• The death claim settlement of private
companies is also now where near the
standards of LIC of India.
Profit & Loss and Death Claim Analysis
of All Life Insurers for the Year 2011-12
Profit/Loss
(in Crores)
For the year
2011-12
Total Carried
forward
as on 31/03/2012
-57.04
73.57
1311.20
-189.84
460.73
-89.07
-128.25
-29.23
-129.65
271.02
1384.17
-69.86
-72.58
-31.15
-100.73
-1404.94
2349.94
-1748.30
-1376.23
-757.48
-375.56
-29.23
-1096.20
-1294.48
-1946.70
-432.35
-189.37
-1150.14
Death Claims
Company
Aegon Religare
Aviva
Bajaj Allianz
Bharati
Birla Sunlife
Canara HSBC
DLF Pramerica
Edelweiss Tokio
Future Generali
HDFC Standard
ICICI Prudential
IDBI Federal
First
Vysya
% of Claim
Amount
Paid
% of Claim
Amount
Rejected
% of
Claim
Amount
Pending
59.74
74.80
83.96
71.73
80.41
80.17
21.80
62.68
90.43
94.38
63.58
74.83
80.25
37.96
21.20
9.84
19.39
18.92
15.70
14.63
28.02
8.43
4.44
29.56
25.17
9.96
2.30
4.00
6.19
8.88
0.67
4.14
63.57
9.30
1.14
1.17
6.86
0.00
9.36
Profit & Loss and Death Claim Analysis
of All Life Insurers for the Year 2011-12
Profit/Loss
(in Crores)
Death Claims
Company
% of Claim
Amount
Paid
% of Claim
Amount
Rejected
% of
Claim
Amount
Pending
18.87
12.41
13.53
19.16
9.09
1.35
18.24
3.75
25.75
9.28
3.70
13.32
9.41
13.89
3.01
23.48
23.00
2.21
13.70
2.01
5.32
1.21
For the year
2011-12
Total Carried
forward
as on 31/03/2012
203.25
459.83
33.17
372.57
29.48
555.82
56.18
-25.60
260.31
50.61
-369.78
-46.17
-2486.20
64.90
1118.93
80.79
-94.95
-1297.76
Kotak Mahindra
Max
Met Life
Reliance Life
Sahara
SBI Life
Shriram
Tata AIA
71.84
83.89
72.65
71.43
76.32
95.63
58.28
73.25
72.05
4649.03
25624.60
-12531.40
*
Private Total
LIC of India
80.95
95.43
Star Union Dai-ichi
*Out of total surplus generated for the year 95% (`24,343.37 crores) is distributed
among the policyholders and balance 5% (`1281.23 crores) is Govt of India share.
Source: IRDA Annual Report 2011-12. Available at www.irda.gov.in
Procedure to become
LIC Agent:
• Education Qualification:
Graduate ( HSC pass will be considered for
exceptional Candidates)
• Mandatory Class room Training for 50 hours.
( About 10 days) OR Online Training
• Passing of IRDA Examination.
• Issue of License by IRDA.
Procedure to become
LIC Agent:
• Fees:
• ` 150 Registration Fees.
• ` 300 Online Training Fees. No Charges
for Classroom training.
• ` 200 IC -33 Study Material.
• ` 350 IRDA Examination Fee.
• ` 250 IRDA License Fee for 3 years.
Total: ` 1250 for Online Training OR
` 950 for Classroom Training.
Support from our side
• After getting IRDA license you will be trained
on Need Based Selling techniques.
• Your activities will be monitored regularly to
insure that you achieve your desired target
on time.
• Our training program is designed in such a
way that you will qualify for MDRT and
Chairman Club Membership within 3 years of
your agency.
• Your income will be at least `1,00,000 per
month within 3 years time.