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Goibs 2007 Revised


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  • 1. PRESENTATION ON G.O.I.B.S. 2007
    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
  • 3. 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.
    for kalamurasu ......tsr
  • 4. 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
    for kalamurasu ......tsr
  • 5. 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)
    for kalamurasu ......tsr
  • 6. 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.
    for kalamurasu ......tsr
  • 7. New Definitions
    • Productive Agent.
    • 8. Agent who completes 20 Lives in the agency year falls during the Appraisal Yr.
    • Agent who completes 12 Lives with SFYPI of Rs.1,00,000.
    • Agent who completes 15 lives with SFYPI of Rs.70000/-
    for kalamurasu ......tsr
  • 9. 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    If 80% credit of SFYPI was allowed, then only the 80% of Credit of SFYPI shall be withdrawn.
    for kalamurasu ......tsr
    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.
    for kalamurasu ......tsr
  • 11. 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.
    for kalamurasu ......tsr
  • 12. 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%
    for kalamurasu ......tsr
    for kalamurasu ......tsr
  • 14. 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.
    for kalamurasu ......tsr
  • 15. Basic IB
    for kalamurasu ......tsr
  • 16. Modifications of BIB
    Recruitment of Agent
    Managing Agency Organisation
    Specified Plans
    MDRT/COT/TOT Corp. Club Agents
    Rural Credit
    Performance based on Cost cal. on Qualifying Premium.
    Growth in SFYPI
    No. of Lives Assured
    Productive Agents
    Deemed Productive Agents.
    for kalamurasu ......tsr
    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
  • 18. 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)
    for kalamurasu ......tsr
  • 19. 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)
    for kalamurasu ......tsr
  • 20. 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
    for kalamurasu ......tsr
  • 21. 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.
    for kalamurasu ......tsr
  • 22. No. of Lives
    for kalamurasu ......tsr
  • 23. 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%.
    for kalamurasu ......tsr
  • 24. No. of Lives
    Example – 1.
    No. of Lives : 1000, Prod. Agents : 15
    BIB : 75380,
    Rate of Increase = Rs 500 + Rs 167.50
    (0.66% of 25380)
    Amount of (1000-800) X 667.50
    Increase 30
    = Rs. 4005/-
    for kalamurasu ......tsr
  • 25. No. of Lives
    Example – 2.
    No. of Lives : 450, BIB : 25000,
    Rate of Decrease = 10% of BIB
    Amount Decrease = Rs. 2500/-
    for kalamurasu ......tsr
  • 26. 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.
    for kalamurasu ......tsr
  • 27. 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%.
    for kalamurasu ......tsr
  • 28. Maximum Debit
    The Maximum Debit under
    Growth of SFYPI
    No. of Lives
    Productive Agents
    Shall not exceed 24% (or) Rs.200000 whichever is less
    for kalamurasu ......tsr
  • 29. 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.
    for kalamurasu ......tsr
  • 30. 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.
    for kalamurasu ......tsr
  • 31. 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.
    for kalamurasu ......tsr
  • 32. 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.
    for kalamurasu ......tsr
  • 33. Incentive for Managing Agency Organisation
    for kalamurasu ......tsr
  • 34. 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/-
    for kalamurasu ......tsr
  • 35. MDRT / COT / TOT &Corporate Club Agent
    • MDRT : Increase in IB @ Rs. 2000 /Agt. (Qualified in the first 3 yrs of recruitment on commission basis)
    • 36. C.Club: Increase in IB @ Rs. 5000 / Agt
    • 37. COT : Increase in IB @ Rs. 7500 / Agt
    • 38. TOT : Increase in IB @ Rs. 10000 / Agt
    Maximum Allowed is 40,000
    for kalamurasu ......tsr
  • 39. Rural Credit
    IF 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
    for kalamurasu ......tsr
    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 pm
    Non IB earners : Not earned any IB but working within expense limit
    Eligible premium not less than 7.50 lakhs
    Net addition of agents Atleast 3.
    for kalamurasu ......tsr
    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.
    for kalamurasu ......tsr
    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.
    for kalamurasu ......tsr
    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.
    for kalamurasu ......tsr
    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.
    for kalamurasu ......tsr
  • 45. THANK YOU
    for kalamurasu ......tsr