LM CLUB MEMBERSHIP SCHEME – FY 2021-22

(PRODUCTION YEAR - 2020-21)

 MONTHLY GRADUATION ALLOWANCE
Monthly Graduation Allowance For Club Members of FY 21 (Production Year 19-20)
LMs declared as Club members for the year FY 21 (Based on production year 19-20), will be eligible for graduation
allowance based on the performance in F.Y.20-21 as per the below Grid. This allowance should serve as a motivation for the
club members to graduate to higher clubs. The allowance also serves as an additional income apart from the commission
income earned monthly.
SLAB I SLAB II
Minimum F.Y. 20- Minimum F.Y. 20-
LM CLUB 21 Monthly Net 21 Monthly Net
Allowance Allowance
Rated N.B.P. Rated N.B.P.
( In Lacs) ( In Lacs)
BM CLUB 0.30 450 0.50 900
DM CLUB 0.50 750 0.75 1300
DY. RM CLUB 0.75 1100 1.50 2600
RM CLUB 1.50 2200 2.30 4000
RD CLUB 2.30 4000 3.50 7000
CH CLUB 3.50 6000 6.00 12000
PRESIDENT CLUB 6.00 10500 10.00 20000
MD CLUB 10.00 17500 12.00 24000
 CLUB MEMBERSHIP FY 22 (Production Year 20-21)

 Direct Benefit Transfer

 Rising Star – Early Bird and Graduation Bonus
 PROTECTION BONUS
 Enhanced Insurance Cover
 Persistency Bonus
 IQA Qualification & Training
 NOP Awards
 LONG TERM SERVICE BENEFIT (FUTURE SECURE FUND)
 Conventions & Trainings
 PREMIUM WEIGHTAGE & PERSISTENCY CRITERIA
Consideration of Premium for qualification and reward distribution:

PRODUCT CREDIT FOR NBP 2020-21

PRODUCT TYPE WEIGHTAGE
ULIPS-REGULAR 100%
TRADITIONAL- REGULAR 100%
PROTECTION PLANS- REGULAR 100%
PROTECTION PLANS- SINGLE 10%
SINGLE PREMIUM 10%
ANNUITY PLANS 10%

For Qualification, the LM needs to achieve the required minimum Net Rated New
Business Premium and Minimum 82% 13th Month Rolling Persistency ratio as on
31/03/2021.
 REGIONAL CLUB QUALIFICATION NORMS
LM CLUB MEMBERSHIP : REGIONAL CLUBS QUALIFICATION NORMS
Condition A OR Condition B
MINIMUM N.B
MINIMUM NET RATED
CLUB COMMISSION TO BE PATRON
N.B. PREMIUM in FY 20-21
EARNED in FY 20-21
(Rs. Lacs)
(Rs. Lacs)
RISING STAR 2 0.30 BM / DM
BRANCH MANAGER
3 0.45 BM / DM
CLUB
DIVISIONAL
5 0.75 DM / SDM
MANAGER CLUB
DY. REGIONAL
8 1.20 DY. RM
MANAGER CLUB
REGIONAL
13.5 2.25 RM
MANAGER CLUB
REGIONAL
22.5 3.75 RD
DIRECTOR CLUB

* An LM can qualify either under condition A OR condition B as per the above grid
 NATIONAL CLUB QUALIFICATION NORMS

LM CLUB MEMBERSHIP : NATIONAL CLUBS QUALIFICATION NORMS

CLUB MINIMUM NET RATED N.B. PREMIUM (Condition A) (Rs. Lacs) PATRON

COUNTRY HEAD A cumulative of 55 lacs for the F.Y. 19-20 & F.Y. 20-21, of which EVP & CHIEF
CLUB 35 lacs for the FY 20-21. RETAIL AGENCY
A cumulative of 75 lacs for the F.Y. 19-20 & F.Y. 20-21, of which PRESIDENT -
PRESIDENT CLUB
55 lacs for the FY 20-21. ZONE

A cumulative of 110 lacs for the F.Y. 19-20 & F.Y. 20-21, of which
MD CLUB MD & CEO
90 lacs for the FY 20-21.
 CLUB BENEFITS – DIRECT CREDITS & ENCHANCED LIFE COVER

BENEFITS
DY.
RISING BRANCH DIVISIONAL REGIONAL REGIONAL COUNTRY
REGIONAL PRESIDENT
REWARD STAR MANAGER MANAGER MANAGER DIRECTOR HEAD MD CLUB
MANAGER CLUB
CLUB CLUB CLUB CLUB CLUB CLUB
CLUB

DIRECT BENEFIT
1,000 1,500 2,500 4,000 10,000 25,000 40,000 60,000 100,000
TRANSFER (RS.)

LIFE INSURANCE
NA 300,000 500,000 800,000 1,500,000 2,500,000 4,000,000 6,000,000 10,000,000
COVER (Rs.)*

PERSONAL ACCIDENT
NA 100,000 200,000 500,000 600,000 1,000,000 2,000,000 3,000,000 5,000,000
COVER (Rs.)*

GROUP MEDICLAIM
NA 500,000 500,000 500,000 500,000 500,000 1,000,000 1,000,000 1,500,000
(Rs.) !!

!! RD Club and above will be under Family Floater Scheme

 RISING STAR – EARLY BIRD BONUS

REWARDS BASED ON ACHIEVEMENT TO RISING STAR CLUB WITHIN 90 DAYS* FROM THE DATE
OF CODING .

• Direct Benefit Transfer of Rs. 1000/-. Payout shall be payable in the current F.Y. 2020-21.

• All LMs coded from 1st Feb 2020 and not qualified for any clubs during the production year 2019-
2020 would be considered.

• However, any business issued prior to 1st April 2020 would not be considered.

• Rising Star Early Bird shall be disbursed in FY.2020-21.

 RISING STAR- GRADUATION BONUS
Graduation Bonus shall be applicable for all LMs coded from 1st Feb 2020 onwards and not qualified
during the production year 2019-2020.

• RISING STAR to DM CLUB – Rewards based on graduating to DM CLUB within 6 months of

coding * - Direct Benefit Transfer of Rs. 1000/-

• RISING STAR to DY. RM CLUB – Rewards based on graduation to DY. RM CLUB within the
financial year * - Direct Benefit Transfer of Rs. 2000/-

• RISING STAR to RM CLUB – Rewards based on graduation to RM CLUB within financial year
*- Direct Benefit Transfer of Rs. 4000/-

• RISING STAR to RD CLUB & ABOVE – Rewards based on graduation to RD CLUB and above
within financial year * - Direct Benefit Transfer of Rs. 6000/-
• *For LMs coded in 2/2020 & 03/2020, calculation of 90 DAYS from coding shall start from
01/04/2020, i.e. 90 DAYS completion shall be considered as on 30/06/2020. However, any business
issued prior to 1st April 2020 would not be considered.
• Graduation Bonus shall be disbursed in FY.2021-22.
 PERSISTENCY BONUS
Club members will be eligible for additional bonus based on the persistency as per the grid below.

Persistency Ratio Increase in Basic Direct Benefit Transfer (Rs.)

>=90 % of 13th Month persistency 10%
>=75% of 25th Month persistency 10%
>=70% of 37th Month persistency 10%
>=60% of 61st Month persistency 20%
PERSISTENCY Collection upto
13th MONTH 31/03/2021
25th MONTH 31/03/2021
37th MONTH 31/03/2021
61st MONTH 31/03/2021

LM can earn the bonus on achievement of the above parameters individually/ combine.

Example : An MD club member on achieving all of the Persistency conditions given above will be eligible for
additional bonus of Rs. 50,000 which is 50% of his Direct Benefit Transfer.
 PENALTY ON CLAIMS

The Basic Direct Benefit Transfer shall be decreased based on the below parameters:

a) Repudiated Claim (Due to suppression of material facts)-15% reduction in basic direct benefit transfer.

a) Very Early Claim (Claim arising within 1st policy year) -10% reduction in basic direct benefit transfer. The same
shall not apply in case of Accidental / Natural Death.

a) Misselling - 10% reduction in basic direct benefit transfer.

LM shall be subject to action as per the norms of SQS policy.

 IQA REGISTRATION (International Quality Award – LIMRA)
As per IQA rules, the club member will have to achieve Minimum 30 NOP for the FY 21 and 30 NOP for FY 20,
with a 13th month persistency of 90 % as 0m 31st March 2021..

The IQA Qualifiers will be registered under LIMRA IQA scheme and will be nominated for annual LIMRA
Training Program.

NOP BASED AWARDS

If a club member sells required NOPs during the production year, he will be awarded as below :

CLUBS 100 NOP 200 NOP 400 NOP

ALL CLUBS CH Trophy President Trophy MD Trophy

 PROTECTION BONUS
To bring in clear focus amongst LMs on Protection business, an additional bonus has been introduced.

The Bonus would be paid in F.Y. 21-22 along with Direct Benefit Transfer of Club membership after the
declaration of Club membership qualifications based on production year 2020-21(FY 22) under the following
qualifying norms.
13month
Min Protection Protection Rated Persistency of
SLAB Bonus
NOP Premium Protection
Products
25% of Direct Benefit
SLAB 1 5 100000 75% Transfer of respective
qualifying club
50% of Direct Benefit
SLAB 2 10 200000 75% Transfer of respective
qualifying club
75% of Direct Benefit
SLAB 3 20 400000 75% Transfer of respective
qualifying club
100% of Direct Benefit
SLAB 4 40 1000000 75% Transfer of respective
qualifying club

TERMS & CONDITIONS:

Any CFIC action taken on account of VEDC would disqualify the Club member from being eligible for the Protection
Bonus.
 LONG TERM SERVICE BENEFIT (FUTURE SECURE FUND)
SBI Life values the services rendered by the LMs on building this prestigious organization. Securing the future of
constant performers is one of the top priority of SBI Life. Hence the organization has decided to introduce a future
secure fund or a future corpus based on the renewal business of the club member.
10% of aggregate Renewal Commission paid during the previous year shall be utilized to create this
future secure fund in favor of the eligible club member.
To avail this benefit, the club members has to remain in RM club and above for minimum 5 years
consecutively every year.
TERMS & CONDITIONS:
• LM who is RM Club member and above for past consecutive 5 years i.e. from Production Year 2015-16 to 2019-20.
• If any LM code is in deactivate status as on 31st March 2020, the LM will not be eligible for qualification.
• 10% of aggregate Renewal Commission Paid in the F.Y. 2019-20 shall be utilized to create a Term Deposit in
favor of the qualified LM.
• All LMs need to mandatorily open a Savings/ Current A/C with SBI.
• The Savings / Current Account with SBI should be mandatorily a running Account until the expiry of the Term Deposit
or as on the Date when the Term Deposit is due for Payment.
• The Tenure of the Term Deposit shall be defined as per the Age of the Savings / Current Account Holder i.e. up to
attainment of Age 60 / 65 as chosen by the LM from the Date of Opening of Term Deposit subject to maximum period of
10 Years and shall be further extended for Renewal for further period of maximum 10 years or attainment of age as
above / selected age by the qualifier. There would be no upper age limit for creation of Term Deposits. For Lm above age
60 / 65 years Term Deposit would be opened as approved by SBI.
 LONG TERM SERVICE BENEFIT (FUTURE SECURE FUND)
• In Case of Premature Death, the Term Deposit shall be payable to the Registered Nominee as per the declaration of
the Savings / Current Account Holder (LM).
• The Term Deposit Account opened by SBI in the respective Savings / Current Account of the LMs shall be lien
with SBIL.
• The Lien Term Deposit with SBIL shall be credited to the Savings / Current Account for encashment only as per the
instructions of SBIL.
• SBIL shall deposit the additional amount on an Annual basis or Half / yearly Basis to SBI as per the Qualification of
eligibility of Additional amount of the defined Scheme of SBIL. The Additional amount shall be added by SBI to the
respective Lien Term Deposits of the Term Deposit Holder.
• All rewards will be distributed in FY 2020-21 after the release of final list of qualifiers.
• The Term Deposits shall be subject to Tax as per existing Tax laws.
• In case of any ambiguity in interpretation, the interpretation of the competent authority of the Company will be final
& binding on all.
• The final terms and conditions of the scheme shall be as per the agreement/MOU signed between SBI Life
and SBI, which shall precede the terms and conditions mentioned herein.
 SPECIAL MHR & KYC, INSURANCE QUALIFICATION

1. Special MHR and KYC Verification Limit :

This Special MHR limits will only be applicable to RM and Above club qualifiers with minimum 2
years of vintage based on the table given herewith:

MHR KYC VERIFICATION

CLUB Total Annualised contribution /
SUC for life insurance policies
Single premium

MD CLUB QUALIFIER OF PRODUCTION

Upto 25 lakhs From 1 lakh to 5 lakh
YEAR 2019-20 & 2020-21.

PRESIDENT CLUB & CH CLUB QUALIFER OF

Upto 20 lakhs From 1 lakh to 4 lakh
PRODUCTION YEAR 2019-20 & 2020-21
RD CLUB QUALIFIER OF PRODUCTION
Upto 10 lakhs From 1 lakh to 2 lakh
YEAR 2019-20 & 2020-21.
Incentive for acquiring Insurance Qualification & CFP Certification
Reimbursement:

This incentive shall be applicable to any club qualifier who has acquired the requisite qualifications
as mentioned below in the F.Y. 2020-21

Incentive for acquiring Insurance Qualifications & CFP certification reimbursement

Sr.
Name of Examination Body Name of Examination / Certificate Incentive (Rs.)
No.
1 Licentiate 2500
2 Insurance Institute of India Associate 5000
3 Fellow 10000
FPSB India (Financial Planning
4 CFP Certification 10000
standards board India)
 TERMS & CONDITIONS

 An LM can be a member of only one club at any point of time.

 If any LM code is in deactivate status as on 31st March 2021, the LM will not be
eligible for qualification.
 Free-look, cheque dishonors, and cancellations will not be considered while arriving at the
Final New business figures.
 All Payouts are subject to achievement of Rolling 13th Month Persistency on Annual Basis.
 All applicable taxes will be deducted from the reward amount.
 These club membership norms and benefits are subject to change at any time at the
discretion of management.
 All rewards are subject to compliance rules and regulations laid down by Regulator.