How can I become a PLI agent in the post office?
As we are aware that postal life insurance is the oldest insurance scheme of the Government of India. There are more than 64 lakh PLI policies and 2.50 Crore Rural PLI. These policies are procured by the PLI/RPLI agents. Mainly policies are procured by the Departmental employee of the DOP, however, Direct agents have a good opportunity to become PLI agents in the Post office. In this article, we will discuss how to become a PLI agent and the commission rate for PLI agents. Normally every Postal Division in the Posta Circle calls for applications for Direct Agents from the public from time to time. Citizens who are willing and eligible can apply for the Post office PLI Agent. The details process, eligibility, incentive, and term, and conditions will be as under:-
Who can become PLI agent?
Engagement and Duties of Direct Agents
Definition of Direct Agent- A Direct Agent means an Insurance Agent engaged from the open market,who receives payment by way of commission in consideration of her/his procuring PLI/RPLI business including business relating to the continuance, renewal or revival of life insurance policies if any.
Eligibility for engagement as Direct Agents PLI:
v Age: The minimum and maximum age of the applicant shall be 18 years and 50 years
respectively on the date of “walk-in-interview”.
v Educational Qualification: The applicant must have passed 10th standard or equivalent examination conducted by a Board recognized by Central/State Government.
v Categories of Applicants: Unemployed/self-employed youth, Ex life advisors/Ex- agents of any insurance company, Ex-servicemen, Anganwadi workers, Mahila Mandal workers, Ex-Servicemen, Retired school teachers, SHGs, Gram Pradhan, Members of Gram Panchayat and any other person as considered suitable by the Head of Postal Division.
Method of Engagement of Direct Agents:
v Calling for Applications: For engagement of Direct Agents, the Head of the Postal Division will publish advertisements in local newspapers. A notice containing the advertisement will be displayed in Divisional Office, Sub-Divisional Office, all post offices and at prominent public places in the Division. The advertisement will give a minimum of 15 days’ time for conducting walk-in-interview of persons willing to apply as Direct Agents.
Sample application form for PLI Agency - Download
v Walk-in-interview: The willing eligible persons will attend “walk-in-interview” along with the application form and required certificates on the given date and time. The Interview Board shall comprise of (a) an ASP of the Division as the Chairman,(b) a Development Officer, and (c) an official of the Division as nominated by the Divisional Head. The walk-in interview will include questions on knowledge of life insurance industry in India, knowledge of PLI/RPLI products and knowledge of marketing of insurance products. Candidates will be short listed on the basis of their performance in “walk-in-interview”. After the interview, the names of candidates recommended by the Interview Board will be put up before the Divisional Head for approval. After approval by the Divisional Head, names of successful applicants will be notified by the Division. The overall responsibility of engagement of Direct Agents will lie with the Head of the Postal Division.
v Each Postal Division will advertise the intention of the Department to engage Direct Agents at least once in six months. If required, more such advertisements may be taken out in order to increase the PLI / RPLI business of the Division.
Security Deposit.
A cash security of Rs. 5,000/- will be required to be furnished by the selected Direct Agent in the form of National Savings Certificate (NSC) / Kisan Vikas Patra (KVP) to be pledged to the President of India as security. This security will be released on termination of the engagement of the person as Direct Agent or after his death, whichever is earlier, provided no dues is outstanding against the Direct Agent. The NSC or KVP will be kept in the custody of the Divisional Head after entering details in a register to be maintained for the purpose.
Training:
v Each short-listed Direct Agent will be imparted training as under: -
v In-house training for 3 days to be conducted at the Divisional level. In-house training will be imparted by Development Officer /ASP / IP. All shortlisted candidates will be provided agent's guide book/study material before the training starts, as prescribed by PLI Directorate.
v Practical training for 3 days on insurance business at CPCs in the Division. Practical training will be imparted by CPC in-charge and Development Officer under the guidance of IP / ASP concerned.
v After completion of in-house and practical training, Direct Agents will be required to clear the licentiate examination, as approved by the Department, within 3 years of engagement as Direct Agents. There would be no limit on the number of chances a Direct Agent may take for passing the licentiate examination. The requisite exam fee shall be deposited by the candidate taking an examination on each occasion.
Issue of License, Agent Code, ID Card to Direct Agent:
v Applicants, engaged as Direct Agent, shall be issued license, agent code and
identity card by the Divisional Head for the purpose of procuring PLI / RPLI business.
v Initially, Direct Agents will be issued provisional licenses, which will be converted into permanent license on passing the licentiate exam.
v The permanent license will be valid for a period of 5 years from the date of engagement of the Direct Agent, which may be renewed by the Head of Postal Division every year thereafter, on the basis of satisfactory business performance by the Direct Agent.
v The agency will stand terminated if the Direct Agent fails to clear licentiate examination within a period of 3 years of engagement. The agency will also be terminated if the permanent license is not renewed every year after 5 years of engagement as Direct Agent.
v A shortlisted Direct Agent will be required to deposit a fee of:
(i) Rs 50 /- for the issue of a provisional license,
(ii) Rs. 100/- for the issue of a permanent license,
(iii) Rs. 50/- for the issue of duplicate license/renewal of permanent license.
v The Development Officer shall maintain a Register showing the name, address and agent code of every Direct Agent engaged in the Postal Division, the date from which the Direct Agent has started working in the Division, and the date on which the agency of Direct Agent has been terminated.
TA/DA:
No TA/DA shall be admissible to the Direct Agents for procurement of PLI/RPLI business.
Payment of commission:
The Direct Agent will be paid procurement/renewal commission for the PLI/RPLI business procured by her/him at the rate prescribed by Department of Posts. No procurement/renewal incentive on policies procured earlier will be payable to the Direct Agent after the termination of her/his agency.
Power of cancellation of Agency:
Divisional Head, on the basis of a report given by the Development Officer, can cancel the agency of the Direct Agent at any time, if she/he is involved in criminal offense, criminal misappropriation, criminal breach of trust, cheating, forgery, abetment of or attempt to commit any criminal offense, misrepresentation, dishonesty, misconduct, fraud, theft etc.
Retention of Direct Agents.
Direct Agents so engaged and who have passed the licentiate examination shall be retained till 65 years of age, if she/he achieves the allotted target year by year. Permission to procure PLI/RPLI business will be granted by Divisional Head beyond 65 years of age, if the Direct Agent is doing well in procuring PLI/RPLI business, not suffering from any heart /chronic disease and is physically fit to act as Direct Agent. In such cases, Divisional Head will personally interview the person and accord approval for further retention.
PLI Agent Commission Chart- 2020 onwards
1. Premium received in respect of first 12 months of a PLI/RPLI policy is procurement premium (First Year). The incentive payable on the procurement premium (1st Year) will be a procurement incentive.
2. Premium received from 13th month onwards in respect of a PLI/RPLI policy is renewal premium. The incentive payable on renewal premium will be renewal incentive.
PLI Agent New Incentive Structure of PLI-2022
3. Procurement Incentive:
3.1 Procurement Incentive rate for PLI policies other than Anticipated Endowment Assurance(i.e. WLA, CWLA, EA, Children Policy and Yugal Suraksha):
Premium paying term | Incentive Structure |
Up to and equal to 15 years | 4% of first-year premium income |
More than 15 years but less than or equal to 25 years | 10% of first-year premium income |
More than 25 years | 20% of first-year premium income |
3.2 Procurement Incentive rate for PLI Anticipated Endowment Assurance Policies:
Premium paying term | Incentive Structure |
less than or equal to 15 years | 5% of first-year premium income |
with term beyond 15 years | 7% of first-year premium income |
3.3 Procurement Incentive rate on PLI policy for Development Officer (DO):
DO will be paid incentive @ 1% of total PLI new business premium (NBP) procured by Direct Agents attached to that DO.
4. Renewal Incentive on PLI :-
Premium received from 13th month onwards in respect of a PLI/RPLI policy is renewal premium. The incentive payable on renewal premium will be renewal incentive.
4.1 Renewal incentive @ 1%of renewal premium will be payable to all sales force of PLI.
4.2 No renewal incentive on PLI policies will be paid to Development Officer.
New Incentive Structure for RPLI
5. Procurement Incentive
The premium received in respect of the first 12 months of an RPLI policy is the procurement premium (First Year). The incentive payable on the procurement premium (1st Year) will be a procurement incentive.
5.1. For all types of RPLI policies, each category of the sales force will get a procurement incentive @ 10% of the procurement premium.
5.2. DO will be paid procurement incentive @ 1% of total RPLI new business premium (NBP) procured by Direct Agents attached to that DO.
1. Renewal Incentive:
Premium received from the 13th month onwards in respect of RPLI policy is renewal premium. The incentive payable on renewal premium will be renewal incentive.
6.1. For all types of RPLI policies, each category of the sales force will get a renewal incentive
@ 2.5% of renewal premium.
6.2. No renewal incentive on RPLI policies will be paid to Development Officer.
How much money can a postal life insurance agent make?
Now after getting PLI agency how much you will earn? Let's examine the how much commission you will earn as a PLI agent:
Examples:-
PLI Commission 1st year | |||
Assume 4 policies per month with 20-year term and Monthly premium of Rs.5000/ each @10% | Monthly premium 5000x48 | Yearly Premium | Yearly commission @10% |
4x12= 48 Policies in Year | 240000 | 2880000 | 288000 |
RPLI Commission 1st year | |||
Assume 4 policies per month with 15-year Term and Monthly premium of Rs.2000/ each @10% | 96000 | 1152000 | 115200 |
| Total Incentive | 403200 | |
This is the example if you procured a minimum of 8 policies per month, the commission earned may be much more depending on your business performance.
After 1st year i.e 2nd year onwards the renewal commission for PLI will be @1% of the total yearly premium collected and RPLI @2.5%.
Also Read:- How to login PLI Agent Portal?
2. Incentive on Online/Cash/Pay policies:
2.1 Procurement incentive at the rate prescribed above will be payable on PLI/RPLI policies in case of online/cash/pay policies.
2.2 Renewal incentive at the rate prescribed above will be payable on PLI/RPLI policies in case of online/cash policies. No renewal incentive will be payable in the case of pay policies.
3. Termination of Agency/Superannuation/Discharge from service:
3.1 No procurement/renewal incentive will be payable to a sales force of PLI and RPLI after the termination of her/his agency.
3.2 No procurement/renewal incentive will be payable to Departmental Employees/GDS after superannuation/discharge from the service of the official.
3.3 If a sales force does not procure a minimum of Four (4) new policies in a financial year, the license (Provisional/Permanent) of the sales force may be deemed to be terminated. In case, if the aid sales force, Whose license has been terminated on account of non-procurement of four(4) policies in a financial year, wants to procure PLI/RPLI business, then she/he may apply afresh for a license and a new agency code will be allocated to her/him. Under no circumstance, the termination license of the sales force shall be reactivated.
Code of Conduct to be followed by the Sales Force of PLI/RPLI
Each category of the sales force of PLI and RPLI shall be required to adhere to the following code of conduct:
1. Each PLI /RPLI sales personnel shall:-
(i) Disclose his identity card to prospective insurant on demand
(ii) Disseminate the requisite information in respect of PLI/RPLI product offered for and take into account the needs of the client while recommending a specific insurance plan.
(iii) Disclose the rate of bonus in respect of the insurance product offered for sale.
(iv) Indicate the premium to be charged for each scheme of the insurance product offered for sale.
(v) Explain to the prospective client the nature of information required in the proposal form and also the importance of disclosure of material information in the purchase of an insurance contract
(vi) Inform promptly the prospective insurant about the acceptance or rejection of the proposal by the Department.
(vii) Obtain requisite documents at the time of filling the proposal form, and other documents subsequently asked for by the Department for completion of the proposal;
(viii) Render necessary assistance to the policyholders or claimants or beneficiaries in complying with the requirements for settlement of claims.
(ix) Offer necessary assistance to the policyholder in effecting nomination, assignment, change of address, and other financial / non-financial service requests.
(x) Immediately deposit the first premium /renewal premium obtained from the proposer in post offices and hand over to him/her the requisite cash receipt/premium receipt book received from the post office.
(xi) Make an attempt to ensure timely payment of premiums by the policyholders.
(xii) Give feedback to the Development Officer / Heads of Divisions about the business procured by him.
2. No PLI /RPLI sales personnel shall:-
(i) Procure PLI/RPLI business without holding a valid /provisional license.
(ii) Procure or canvass for any other insurance company except PLI/RPLI.
(iii) Induce the prospective insurant to omit any material information in the proposal form.
(iv) Induce the prospective insurant to submit wrong information in the proposal form or documents submitted to the department for acceptance of the proposal.
(v) Behave in a discourteous manner with existing /prospective insurant.
(vi) Interfere with any proposal introduced by any other insurance agent.
(vii) Offer different rates, advantages, terms and conditions other than those offered by PLI/RPLI schemes.
(viii) Demand or receive a share of proceeds from the policyholder/claimant/beneficiary under an insurance contract.
* Source -Indiapost. / https://ourpli.blogspot.com/
Some important instructions issued by Postal Life Insurance on the Agency system.:-
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