LIFE INSURANCE CORPORATION OF INDIA

CENTRAL OFFICE

“Yogakshema”
Jeevan Bima Marg,
MUMBAI – 400 021.

Ref: Mktg./ZD/02/2010 28.1.2010.

TO ALL ZONAL MANAGERS, OFFICERS IN-CHARGE

OF DIVISIONS, ZTCs, MDC, STCs AND AUDIT CENTRES.

Re: Growth Oriented Incentive Bonus Scheme, 2007

For Development Officers

The Growth Oriented Incentive Bonus Scheme, 2007 for Development

Officers was circulated by Circular Ref. Mktg./ZD/1/2008 dated 3.1.2008.

The Growth Oriented Incentive Bonus Scheme, 2007 provides for

modification in the quantum of basic incentive bonus on account of growth in
eligible premium. The matter has since been reviewed and the Competent
Authority has approved the following modifications in the “Growth Parameter” for
the third year of the Scheme. The existing rules vis-à-vis the revised rules are
given below:

Sr. Existing Rules Revised Rules

No.
1. A Development Officer working at a
cost ratio upto 3% would not be given
any debit for not showing growth in
eligible premium in the relevant
appraisal year as compared to the
eligible premium brought during the
immediately preceding appraisal year.
2. There shall be no reduction in the
basic incentive bonus on account of
growth, if the performance in a
relevant appraisal registers a growth
of 10% for a Development Officer is
working at a cost ratio exceeding 3%
but not exceeding 8% and 15% for a
Development Officer is working at a
cost ratio exceeding 8%, in eligible
premium as compared to the
immediately preceding appraisal year.
A Development Officer working at
a cost ratio upto 8% would not be
given any debit for not showing
growth in eligible premium in the
relevant appraisal year as
compared to the eligible premium
brought during the immediately
preceding appraisal year.
In respect of a Development
Officer working at a cost ratio
exceeding 8%, there shall be no
reduction in the basic incentive
bonus on account of growth, if the
performance in the relevant
appraisal year registers a growth
of 10% in eligible premium as
compared to the immediately
preceding appraisal year.
3. A Development Officer working at a
cost ratio exceeding 3% but not
exceeding 8% and not showing 10%
growth and a Development Officer
working at a cost ratio exceeding 8%
and not showing 15% growth, in
eligible premium in the relevant
appraisal year as compared to the
eligible premium brought during the
immediately preceding appraisal year
will be eligible for decrease in
Incentive Bonus by 2% for each block
of 5% decrease or part thereof.
4. A Development Officer will be eligible
for increase in the basic incentive
bonus by 2% for each block of 5%
increase or part thereof if he/she who
is working at a cost ratio upto 8%
shows a growth above 15% and those
working at a cost ratio exceeding 8%
shows a growth above 20% in eligible
premium in the relevant appraisal year
as compared to the eligible premium
brought during the immediately
preceding appraisal year. The
maximum admissible amount is
limited to Rs. 1,00,000/- provided the
eligible premium brought by the
Development Officer in the relevant
appraisal year is not less than Rs.
20,00,000.
All the other instructions in the matter of calculation of debit/credit
percentages etc. remain unchanged. The above modifications may please be
brought to the notice of all concerned.
A Development Officer working at
a cost ratio exceeding 8% and not
showing 10% growth in eligible
premium in the relevant appraisal
year as compared to the eligible
premium brought during the
immediately preceding appraisal
year will be eligible for decrease in
basic incentive bonus by 2% for
each block of 5% decrease or part
thereof.
A Development Officer will be
eligible for increase in the basic
incentive bonus by 2% for each
block of 5% increase or part
thereof if he/she shows a growth
above 10% in eligible premium in
the relevant appraisal year as
compared to the eligible premium
brought during the immediately
preceding appraisal year. The
maximum admissible amount is
limited to Rs. 1,00,000/- provided
the eligible premium brought by
the Development Officer in the
relevant appraisal year is not less
than Rs. 20,00,000.
Executive Director (Marketing)