Agency Business Partner - Compensation

Applicable from 1st Apr’23

This is the sole and exclusive property of HDFC Life. April 4, 2023
Leader Activity

01 Activate 03 05 Quality
Consistency
Recruit 02 Premium Develop 06
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NLA Extra Business Minimum

Agent Leader
credit Development Threshold Persistency
Activation Creation
Allowance Performance

Monthly
Advisor Long Term
Performance
Development Bonus
Incentive

Half Yearly
Bonus

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Compensation – Start-up period (M1- M5)

Start-up period compensation components

Business
Monthly CTC Development
Allowance

Bumper Fast Track

Bonanza Bonanza

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Monthly CTC

Salary of Rs.3,149 will be paid to the AABP and above for attending the office for minimum
4 days in the month

Business
Team Review
Trainings
meetings with
Manager

The salary paid for the month will be proportional to no. of days Partner has attended the office :

4 Days : 100% 3 Days : 75% 2 Days : 50% 1 Day : 25%

• Salary is on gross basis and includes PF & ESI contributions

• Net in hand would be approx. Rs. 2,500 (post PF & ESI deduction)
• PTE Active on Business for the month will be eligible for Salary irrespective of attendance
Monthly salary for Delhi is INR 3,462/- as per minimum wages act

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Business Development Allowance : AABP
Rs.7,000 will be paid as Business Development Allowance (BDA) in first 5 months to the AABP in addition to the monthly
salary on meeting the criteria as defined below:

Total Payout on
BDA AMOUNT (Rs) Salary (Rs) BDA Criteria (Cumulative basis)
Month achieving BDA criteria
(Salary + BDA)

M1 10,149 7,000 3,149 PRL = 4

M2 10,149 7,000 3,149 PRL = 5, New Licensed = 1

M3 10,149 7,000 3,149 Licenses = 2, AAMM = 2

M4 10,149 7,000 3,149 Licenses = 3, AAMM = 4

M5 10,149 7,000 3,149 Licenses = 4, AAMM = 5

Note:

•M1 being month of coding of the AABP

•If any of the month target is missed, then reconciliation will be applicable. The pay-out will be released as cumulative, post ABP meets the
particular month’s cumulative target
•1 Activation is counted when a LA achieves minimum Rs.25,000 PBC* in a month or 1 Term Policy >= 25 Lacs Sum Assured

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Bumper Bonanza

Start-up period Growth period

payout OR payout

WHICHEVER IS HIGHER

During the period M1 to M5 the achievement of the AABP will be calculated basis start-up period payout
and the growth period payout for every month. The higher of the two will be paid.

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Fast Track Bonanza
In case the AABP completes the cumulative target earlier than the given months,
(Example- M5 month target by or before M3) then the BDA payout of the rest of the
months will be paid to AABP in that particular months in which it is supposed to be
payable, provided AABP is active on business in these months. However, the Growth
Period payout will start from the subsequent month of meeting the cumulative target.

M1 M2 M3 M4 M5 M6

Start-up period Growth period

Start-up period
with Fastrack bonanza Growth period with Fastrack bonanza

AABP completes M5 target by Growth period will start from subsequent month,
or before M3 then BDA will be which is from M4
paid upto M5

• If the AABP will get promoted to ABP designation during the start up period, then he will get the BDA payout paid
till M5, provided the partner is active on business in the month of payout. Higher of the two clause will not
be applicable once the partner is promoted to ABP.

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 Growth Period Compensation
(M6 onwards)

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Compensation – Growth Period (M6 onwards)

Growth Period Payout components

(Payout on Team Business)

NLA Extra Activation

Monthly CTC
Credit incentive

Minimum Monthly
Partner
Threshold Performance
Promotion
Performance Incentive

Advisor H1 & LTI Persistency

Development Bonus Incentive

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Extra Credit on New Licensed Agents (NLA)

150% credit on both FYFP and commission for Monthly Performance Incentive
(MPI) calculation purpose only.

Eg: Assume Rs. 100 is the PBC.

With Extra credit, PBC for MPI calculation will become Rs.150.
And similarly, if the commission on the policy is Rs.30, with extra credit, the
commission for MPI calculation will become Rs.45

Extra credit will apply on business converted till M4 (M1 being the month of
licensing of the life Advisor)

Single Premium & Term Products will be excluded from Extra credit

Any business converted post M4 will be considered at normal credit for calculation
of MPI

** The extra credit will be Subject to a Cap of Rs 6 Lacs FYFP per new licence
advisor

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Activation Incentive

Active Agent Man Month Amount/per active LA

Designation
(AAMM) : DT+L1+L2 Direct L1* L2*
AABP & ABP 2-3 1,500 200 100

4-5 2,000 300 150

6-8 2,250 400 200

All
9-10 2,500 500 250

>10 3,000 600 300

Activate more To earn more !!

• 1 Activation is counted when a LA achieves minimum Rs.25,000 PBC* in a month or 1 Term Product >= 25 Lacs Sum Assured
*L1 & L2 benefits are applicable for ABP & above

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Minimum Threshold Performance
Qualification Criteria
Designation Payout
PBC in Lacs AAMM
0.50 2 3,000
AABP
1.00 2 7,000
1.00 3 7,000
ABP
2.00 4 15,000
1.50 4 9,000
SABP
3.00 5 20,000
2.00 5 12,000
EABP
4.00 6 25,000
3.00 6 18,000
LABP
6.00 7 40,000
•1 Activation is counted when a LA achieves minimum Rs. 25,000 PBC* in a month or 1 Term Policy >= 25 Lacs Sum Assured
• Partner has to achieve both criteria, PBC & AAMM in same calendar month to qualify for payout
• Higher the achievement, higher the reward payable to the partner
• Achievement is calculated on total team : DT + L1 + L2. For PBC calculation, weightages are as
follows : DT – 100%, L1 – 50%, L2 – 15%

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Minimum Threshold Performance – Contd.

MTP Achieved 2 times in a quarter : MTP Achieved 3 times in a quarter :

50% 100%
EXTRA PAYOUT EXTRA PAYOUT

• Scenario 1 :

• SABP has earned Rs. 20,000 MTP in Jul’23, Rs. 20,000 MTP in Aug’23 & missed MTP in Sep’23
• As he has achieved MTP twice in JAS’23, he is eligible for 50% of extra payout
• Extra payout = 50% of (Rs. 20,000 + Rs. 20,000) = Rs. 20,000

• Scenario 2 :

• LABP has earned Rs. 40,000 in Apr’23, Rs. 40,000 in May’23 & Rs. 18,000 in Jun’23
• As he has achieved MTP thrice in AMJ’23, he is eligible for 100% extra payout
• Extra payout = 100% of (Rs. 40,000 + Rs. 40,000 + Rs. 18,000) = Rs. 98,000

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Monthly Performance Incentive
% of First Year Commission
PBC Range
AABP ABP SABP/EABP/LABP
1-49,999 15% 15% NA
50,000 - 99,999 20% 25% NA
1,00,000 - 1,99,000 25% 30% 35%
2,00,000 - 3,99,000 35% 40% 45%
4,00,000 - 5,99,000 45% 50% 55%
6,00,000 - 7,99,000 50% 55% 60%
8,00,000 - 9,99,000 55% 60% 65%
10,00,000 - 12,00,000 60% 65% 70%
12,00,000+ 65% 70% 75%

M7 onwards minimum activation of 2 LA from DT or 4 LA from DT+L1+L2 is required, else only 80% of the
actual earning will be paid as MPI
•Cancellations & Freelook will be negated in the month of cancellation/freelook and carried forward till the negation amount has been completely
adjusted. Recovery amount will be adjusted from entire partner compensation
•Month of conversion will be counted
•Achievement is calculated on total team : DT + L1 + L2. For PBC calculation, weightages are as follows : DT – 100%, L1 – 50%, L2 – 15%

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Partner Promotion Incentive (One Time)

Create ABP/SABP/EABP/LABP in your team and earn incentives :

Designation L1 L2

ABP Promotion 5,000 2,500

SABP Promotion 10,000 5,000

EABP Promotion 15,000 7,500

LABP Promotion 25,000 12,500

• Partner will be eligible to earn the above incentive on promotion of AABP to ABP, ABP to SABP, SABP to EABP and EABP
to LABP from his/ her L1 or L2 team
• The Incentive is payable one time on every promotion
• The Incentive will be payable subsequent to the month of promotion

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Advisor Development Incentive (One Time)

Promotion from Direct Team

Designation
By M3 By M6 By M12

LP 5,000 2,500 -

SLP 10,000 5,000 2,500

ELP 15,000 7,500 4,000

• Gate Criteria : Minimum 2 Life Planners in Direct team in FY’24

• Payout of 1st LP promotion will be paid once the gate criteria is met
• The Incentive is payable one time on every promotion
• The Incentive will be payable subsequent to the month of promotion and on meeting gate criteria

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H1 Bonus
% Payout of
PBC Slabs & AAMM
PBC
Eligibility

6 to < 10 Lacs 8 2% AABP

10 to < 15 Lacs 16 3% AABP & ABP

15 to < 20 Lacs 24 4% All

20 to <30 Lacs 30 5% All

30 to < 50 Lacs 36 6% All

>= 50 Lacs 48 7% All

• Gate Criteria : Partners needs to maintain 80% 13th Month persistency. Persistency will be calculated for DT + L1 + L2
with 100% weightage. CCD : Oct’21 to Sep’22, Collection till 31 st Oct’23
• The Partner needs to achieve both, PBC and AAMM criteria
• Achievement is calculated on total team : DT + L1 + L2. For PBC calculation, weightages for DT, L1 & L2 is 100%

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Long Term Incentive Bonus
PBC OR AAMM Payout Eligibility

1 Cr 200 2,00,000

1.5 Cr 300 3,50,000

2.5 Cr 400 6,00,000 EABP & LABP

4 Cr 500 10,00,000

5 Cr 600 12,50,000

• Gate Criteria : Partners need to maintain 80% of 13th Month persistency. CCD 1st Apr’22 to Mar’23, collection till 30th Apr’24
• PBC, AAMM & Persistency will be calculated for DT to L2,
• The Partner can qualify either on PBC or AAMM criteria
• The qualified leader will be paid in Q1’2025 subject to maintaining/achieving the designation as EABP or LABP as on 31st Mar’25
• Long term Incentive bonus is over and above H1/H2 bonus

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Persistency Incentive

Persistency -13th Month %age of Renewal Commission

80% - 84.99% 7%

85% & 89.99% 10%

90% & Above 15%

• Single Premium is excluded from Persistency and collections calculation

• Persistency refers to the 13th month persistency
• Persistency calculation and payout will be based only on Direct team

Formula: (Collections till the month) / (Dues till 2 months prior to the month)

Example: For Oct‘23 cycle we consider 13th-24th month dues falling between 1st Sep’22 to 31st Aug’23 and collections till 30th Sep’23
For Apr‘24 cycle we consider 13th-24th month dues falling between 1st Mar‘23 till 29th Feb‘24 and collections till 31st Mar’24

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Business Development Allowance : Direct SABP
Rs.10,000 will be paid as Business Development Allowance (BDA) in first 5 months to the SABP in addition to the
monthly salary on meeting the criteria as defined below:

Total Payout on Payout in case

BDA AMOUNT BDA Criteria (Cumulative basis)
Month achieving BDA criteria AABP misses BDA
(Rs)
(Salary + BDA) criteria

M1 13,149 10,000 3,149 PRL = 12, AABP = 2

M2 13,149 10,000 3,149 PRL = 15, New Licensed = 3, AABP = 2
M3 13,149 10,000 3,149 Licenses = 6, AAMM = 6, AABP = 2
M4 13,149 10,000 3,149 Licenses = 9, AAMM = 12, AABP = 2
M5 13,149 10,000 3,149 Licenses = 12, AAMM = 15, AABP = 2

Note:

•1 Activation is counted when a LA of an AABP achieves minimum Rs.25,000 PBC* conversion in a calendar month or 1 Term Product >= 25
Lakhs Sum Assured.
•If any of the month target is missed, then reconciliation will be applicable. The pay-out will be released as cumulative, post SABP meets the
particular month’s cumulative target
•PRL, License and AAMM from DT and L1 team would be considered for SABP BDA

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Contract Maintenance Criteria
Contract maintenance requirement in first 12 months from the month of coding

Contract Maintenance Period Direct LA team size AAMM PBC

Upto M6 2 2 75,000
Upto M12 3 4 1,50,000

Applicable after end of first 12 months

Direct LA Team
AAMM PBC ABP
Size
AABP 3 6 2 Lacs
ABP 4 8 3 Lacs
SABP 6 12 10 Lacs
OR 2 ABPs
EABP 6 18 18 Lacs 4 ABPs or 2 SABPs

LABP 6 24 24 Lacs 4 SABPs or 2 EABPs

• After M12, Partner will have CMC in M18 and every 6 months. E.g. For M18, CMC period will be M7-M18 (Rolling 12 Months)
• For partners not achieving CMC, 1 month time will be given for achieving the CMC from the notification month, failure to do so would lead
to immediate demotion/termination. Notification will be sent to the registered email ID of the partner.
• For PBC calculation, weightages are as follows : DT – 100%, L1 – 50%, L2 – 15%
• Persistency – 75%
For Internal purpose only : The Implementation of the contract maintenance criteria will be basis Approval of VP Accounts or
approval of Channel Head, ABP

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Freelook Withheld Criteria & Recovery: TBD
Recovery

•In case of cancellation of policy payout for the particular month will be recalculated
•The recoverable amount will be recovered from the partner Incentive of current month
•Recovery amount will be tracked till recoverable amount reaches Nil

Freelook With-held

•Partner earning Incentive 1 Lac and above in a particular month will be applicable under Freelook withheld
policy
•Payout will be released in ratio of 80:20
o Eg 1 : Partner A earning Rs. 1,00,000 in Apr'23, Rs. 80,000 will be released to the partner and Rs. 20,000
will be kept on hold which will be released in May'23 payout cycle.

o Eg 2 : Partner B earning Rs. 5,00,000 in Apr'23, Rs. 4,00,000 will be released to the partner and Rs.
1,00,000 will be kept on hold which will be released in May'23 payout cycle.

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 Thank You

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