Goibs 2007 Revised


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Goibs 2007 Revised

  1. 1. PRESENTATION ON G.O.I.B.S. 2007<br />
  2. 2. SALIENT FEATURES<br /> Come into force and Apply to all Appraisals <br /> commencing from 01-09-2007.<br /> Shall remain in force for not more than 3 Years<br />for kalamurasu ......tsr<br />
  3. 3. New Definitions<br />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.<br />for kalamurasu ......tsr<br />
  4. 4. New Definitions<br />Rural Agent : An agent who is residing and working in rural area as defined by the IRDA from time to time.<br />The definition of URBAN is as follows.<br />a) All statutory Places with a municipality, Corporation, Cantonment board or notified town area<br />for kalamurasu ......tsr<br />
  5. 5. New Definitions<br />b) A Place satisfying the following conditions<br />1. Minimum population of 5000<br />2. At least 75% of male working population engaged in non-agricultural pursuits<br />3. A Density of population of at least 400 per Sq. KM (1000 per Sq Mile)<br />for kalamurasu ......tsr<br />
  6. 6. New Definitions<br />No. of Lives.<br /> Policies completed in the Relevant Appraisal Year Only.<br />Joint Life Policies – Single Life.<br />More than one policy from even different agents will be treated as Single Life.<br />Different Children – Different Lives even proposer is same.<br />for kalamurasu ......tsr<br />
  7. 7. New Definitions<br /><ul><li>Productive Agent.
  8. 8. Agent who completes 20 Lives in the agency year falls during the Appraisal Yr.</li></ul>(OR)<br /><ul><li>Agent who completes 12 Lives with SFYPI of Rs.1,00,000.</li></ul>(OR)<br /><ul><li>Agent who completes 15 lives with SFYPI of Rs.70000/- </li></ul>for kalamurasu ......tsr<br />
  9. 9. Lapsed Premium<br />Withdrawal of the credit of Lapsed Premium shall be only that amount of premium for which the Development Officer has been allowed Credit.<br />If 80% credit of SFYPI was allowed, then only the 80% of Credit of SFYPI shall be withdrawn.<br />for kalamurasu ......tsr<br />
  10. 10. CREDIT FOR REVIVAL<br />Policies revived at any time by the agents working under the organisation.<br />Subject to the condition that the agent continues to be in the organisation of the same Dev. Officer.<br />for kalamurasu ......tsr<br />
  11. 11. Allotted / Terminated Agents<br />Allotted/reinstated Agents the No years will be reckoned from the date of appointment not from the date of allotment/reinstatement. <br />SFYPI of Allotted agents will be graded first then restrictive credit will be applied.<br />For terminated agents SFYPI grading will be done as such the agent is in Force.<br />for kalamurasu ......tsr<br />
  12. 12. Cost Ratio<br />The Cost Ratio of the D.O.s should not exceed 15% in the Appraisal Year to make them eligible for I.B..<br />The Cost Ratio should be rounded off to the nearest first decimal places.<br />Example : 15.04% to be taken as 15.0%<br /> 15.05% to be taken as 15.1%<br />for kalamurasu ......tsr<br />
  13. 13. GRADED CREDIT<br />for kalamurasu ......tsr<br />
  14. 14. Graded Credit<br />8 yrs and above agts.<br />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.<br />Ex-gratia Credit<br />For Dev. Officers with 30 years of service or 55 years of age.<br />As at the beginning of the appraisal.<br />25 % of Graded Prem. will be added back as Ex-gratia.<br />for kalamurasu ......tsr<br />
  15. 15. Basic IB<br />for kalamurasu ......tsr<br />
  16. 16. Modifications of BIB <br />Recruitment of Agent<br />Managing Agency Organisation<br />Specified Plans<br />MDRT/COT/TOT Corp. Club Agents<br />Rural Credit<br />Performance based on Cost cal. on Qualifying Premium.<br />Growth in SFYPI<br />No. of Lives Assured<br />Productive Agents<br />Deemed Productive Agents.<br />for kalamurasu ......tsr<br />
  17. 17. GROWTH FOR PERFORMANCE<br />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.<br />Increase : Cost up to 2 % -- 4 % of BIB Cost 2.01 to 4 % -- 3 % of BIB Cost 4.01 to 6 % -- 2 % of BIB.<br />Cost Ratio calculated on the qualifying premium.<br />for kalamurasu ......tsr<br />
  18. 18. Growth in SFYPI (or) Elg. Prem.For Appraisals beginning dates 01.09.07 to 01.08.09 (First two years)<br />Min. Growth 15% for Cost above 8% <br />Min. Growth 10 % for Cost 3 - 8 %<br />Cost Ratio upto 3% - NO Reduction in BIB<br />Min. Elg. Prem Rs. 20,00,000 - for Increase.<br />The increase/decrease is calculated based on every 5% blocks. (Rounded to integer) <br />for kalamurasu ......tsr<br />
  19. 19. Revised GOIBS 2007For Appraisals beginning dates 01.09.09 to 01.08.10(vide cir Mktg/ZD/1/2008)<br />Min. Growth 10% for Cost above 8% <br />Cost Ratio upto 8% - NO Reduction in BIB<br />Min. Elg. Prem Rs. 20,00,000 - for Increase.<br />The increase/decrease is calculated based on every 5% blocks. (Rounded to integer) <br />for kalamurasu ......tsr<br />
  20. 20. Increase/Decrease in BIB<br />Increase/Decrease in BIB @ 2% for every block of 5% Increase/Decrease.<br />Increase in BIB if growth in eligible premium is 10% more than previous year<br />Decrease in BIB if cost is more than 8% and not showing 10% growth in eligible premium over previous year<br />Maximum Increase - Rs.1,00,000<br />for kalamurasu ......tsr<br />
  21. 21. No. of Lives.<br /> 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.<br />Maximum Ceiling Rs. 25,000. <br />for kalamurasu ......tsr<br />
  22. 22. No. of Lives<br />for kalamurasu ......tsr<br />
  23. 23. No. of Lives.<br />If the No. of Lives falls between 550-599 then decrease in BIB @ 4%.<br />If the No. of Lives falls below 550 then decrease in BIB @ 10%.<br />for kalamurasu ......tsr<br />
  24. 24. No. of Lives<br />Example – 1. <br />No. of Lives : 1000, Prod. Agents : 15<br />BIB : 75380, <br />Rate of Increase = Rs 500 + Rs 167.50 <br />(0.66% of 25380)<br />Amount of (1000-800) X 667.50<br />Increase 30<br /> = Rs. 4005/-<br />for kalamurasu ......tsr<br />
  25. 25. No. of Lives<br />Example – 2. <br />No. of Lives : 450, BIB : 25000, <br />Rate of Decrease = 10% of BIB <br />Amount Decrease = Rs. 2500/-<br />for kalamurasu ......tsr<br />
  26. 26. Productive Agents.<br />If there is at least 18 Productive Agents, increase @ 2.5% BIB for every productive agent above 18.<br />Maximum Ceiling Rs. 20,000<br />If there is at least 600 Lives and Productive Agents 15, then there shall be no decrease in this count.<br />for kalamurasu ......tsr<br />
  27. 27. Productive Agents.<br />If the Productive Agents is 14 or 13, decrease BIB @ 2%.<br />If the Productive Agents is 08 to 12, decrease BIB @ 5%.<br />If the Productive Agents is 7 & below, decrease BIB @ 10%.<br />for kalamurasu ......tsr<br />
  28. 28. Maximum Debit<br />The Maximum Debit under<br />Growth of SFYPI<br />No. of Lives<br />Productive Agents<br />Shall not exceed 24% (or) Rs.200000 whichever is less<br />for kalamurasu ......tsr<br />
  29. 29. Deemed Productive<br />Where a new agent is appointed in the relevant appl. Year completes either <br />Atleast 20 Lives (or)<br />12 Lives & 1 lakh Eligible Premium (or)<br />15 Lives & Rs.70000 Eligible Premium<br />Increase Rs.1000/- per agent<br />Such agents shall also be counted for Productive Agent.<br />Such Agents shall not be counted as productive in the succeeding appraisal. <br />for kalamurasu ......tsr<br />
  30. 30. Recruitment of Agents<br />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 &lt; 40/45 then,<br /> Expected NET ADDITION is 2 Agents.<br />Till the level of 40/45 Agents is reached & Maintained. Allotted Agents will not be counted for NET ADDITION.<br />for kalamurasu ......tsr<br />
  31. 31. Recruitment of Agents<br />There shall be no decrease if the organization has 40/45 Agents respectively.<br />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.<br />for kalamurasu ......tsr<br />
  32. 32. Increase in BIB<br />Rs.2000/- for every net addition of 2 Agents subject to a max. of Rs.10000/-<br />Basic Condition:<br />Minimum 50 Agents as at the beginning of appraisal and these agents recruited in the year are active.<br />for kalamurasu ......tsr<br />
  33. 33. Incentive for Managing Agency Organisation<br />for kalamurasu ......tsr<br />
  34. 34. Bench Mark in terms of Elg. Prem. Under Specified Plans<br />Basic Condition: 10 % of Elg. Prem. Of previous apprl. Year (or) Rs.10 lakhs whichever is lower.<br />Increase: For every 2% increase or part thereof over 15 % - Increase 0.5 % of BIB sub. to Maximum of Rs.25000/-<br />Decrease: For every 1% shortfall or part thereof - Decrease 1% of BIB sub. to a Maximum of Rs.25000/-<br />for kalamurasu ......tsr<br />
  35. 35. MDRT / COT / TOT &Corporate Club Agent<br /><ul><li>MDRT : Increase in IB @ Rs. 2000 /Agt. (Qualified in the first 3 yrs of recruitment on commission basis)
  36. 36. C.Club: Increase in IB @ Rs. 5000 / Agt
  37. 37. COT : Increase in IB @ Rs. 7500 / Agt
  38. 38. TOT : Increase in IB @ Rs. 10000 / Agt</li></ul>Maximum Allowed is 40,000<br />for kalamurasu ......tsr<br />
  39. 39. Rural Credit<br />IF 50% of the Agency Organization, At the beginning of the Appraisal Year consist of Rural Agents / Hill Agents, (IRDA Definition)<br />Extra IB @ 10% is allowed subject to a maximum of 1,50,000 <br />for kalamurasu ......tsr<br />
  40. 40. CONVEYANCE ALLOWANCE<br />For appraisals commencing from 01.09.06<br />Payable for Non IB earners only <br /> - w/o fast conveyance Rs 1800 pm<br /> - with fast conveyance Rs 2000 pm<br />Non IB earners : Not earned any IB but working within expense limit<br />Eligible premium not less than 7.50 lakhs<br />Net addition of agents Atleast 3.<br />for kalamurasu ......tsr<br />
  41. 41. CONVEYANCE ALLOWANCE<br />Net Addition of Agents - 2 : Rs.1200/1500 p.m.<br />Net Addition of Agents - 1 : Rs.800/1000 p.m.<br />Net Addition of Agents - 0 : Rs.300/400 p.m.<br />Below existing level - No additional conveyance<br />Such conveyance allowance paid should be included in the annual remuneration for the next appraisal year. <br />for kalamurasu ......tsr<br />
  42. 42. ADVANCE - GOIBS<br />Eligibility :<br /> 1. Notional Cost Ratio is 15% or less.<br /> 2. At least a period of 6 months should have <br /> elapsed from the beginning of relevant <br /> appraisal year.<br /> 3. The previous appraisal should have been <br /> finalised in respect of the last appraisal <br /> year ended.<br />for kalamurasu ......tsr<br />
  43. 43. ADVANCE - GOIBS<br />4. The Basic Incentive Bonus formula shall be applied on the Qualifying Premium to ascertain the quantum of advance.<br /> [ Qualifying Premium = Eligible Premium – <br /> Lapsed Premium ] <br /> [ Lapsed Premium = First and Second year <br /> lapse (actuals) or notional 15%]<br /> 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. <br />for kalamurasu ......tsr<br />
  44. 44. ADVANCE - GOIBS<br />Shall be limited to 90% of accrued Basic Incentive Bonus.<br />Maximum of 3 advances in an appraisal year.<br />Minimum period of 2 months between 2 advances. <br />for kalamurasu ......tsr<br />
  45. 45. THANK YOU<br />for kalamurasu ......tsr<br />