PLI RPLI Incentive Structure 2023

All information regarding PLI RPLI incentive structure 2023 – Procurement Incentive, Renewal PLI Incentive

F.No. 28-03/2019-L1(4)
Government of India
Ministry of communications
Department of Posts
(Directorate of Postal Life Insurance)

Chanakyapuri, New Delhi
Dated 25.06.2021

Subject:- Incentive Structure of PLI/RPLI-reg.

This is regarding the incentive payable to sales force of PLI/RPLI for PLI/RPLI business procured by them. In this connection, some circles have asked for clarification on the incentive payable on PLI/RPLI. Accordingly, the instructions on the rate of incentive payable on procurement and renewal incentive is being reiterated for information of circles.

2. Procurement Incentive on PLI:
2.1 Premium of first 12 months of a PLI policy in procurement (First Year) premium. The incentive payable on the procurement (First year) Premium will be procurement incentive.

2.2 Procurement incentive rate for PLI policies other than anticipated Endowment Assurance (i.e. WLA,CWLA,EA,Children Policy and Yugal Suraksha).

Premium Paying TermIncentive Strcuture
Up to and equal to 15 years4% of First year Premium
More than 15 years but less than or equal to 25 years10% of First year Premium
More than 25 years20% of First year Premium

2.3 Procurement Incentive rate for PLI Anticipated Endowment Assurance Policies:

Premium Paying TermIncentive Strcuture
Less than or equal to 15 years5% of First Year Premium
with term beyond 15 years7% of First Year Premium

3. Renewal Incentive on PLI:
3.1. – Premium received from 13th August onwards in a PLI policy in renewal premium. The Incentive payable on renewal premium will be renewal incentive.

3.2 Renewal Incentive on PLI policies procured between 01.10.2009 to 31.03.2017

Category of sales force01.10.2009 till 31.03.201701.04.2017 till 30.06.2020On or after 01.07.2020
Departmental EmployeeNil2% of renewal premium1% of renewal pemium
Field Officer 2% of renewal premium2% of renewal premium1% of renewal premium
Direct Agent2% of renewal premium2% of renewal premuim1% of renewal premium
Gramin Dak sevaksNil2% of renewal premium1% of renewal premium

3.3 Renewal Incentive on PLI policies procured between 01.4.2017 to 30.06.2020

Category of Sales force01.04.2017 till 30.06.2020On or after 01.07.2020
Departmental Employee2% of renewal premium1% of renewal premium
Field Officer2% of renewal premium1% of renewal premium
Direct Agent2% of renewal premium1% of renewal premium
Gramin Dak Sevaks2% of renewal premium1% of renewal premium

3.4 Renewal Incentive on PLI policies procured on or after 01.07.2020:

Category of Sales forceOn or after 01.07.2020
Departmental Employee1% of renewal premium
Field Officer1% of renewal premium
Direct Agent1% of renewal premium
Gramin Dak Sevaks1% of renewal premium

4. Procurement Incentive on RPLI:
4.1 Premium of First 12 months of a RPLI policy is procurement (First Year) Premium. The incentive payable on the procurement (First Year) will be procurement Incentive.
4.2 For all type of RPLI policies, each category of sales force will get procurement incentive @ 10% of procurement (first year) premium.

5. Renewal Incentive on RPLI:
5.1 Premium received from 13th month onwards in a RPLI policy in renewal premium. The incentive payable on renewal premium will be renewal premium.

5.2 Renewal Incentive on RPLI policies procured on or after 01.10.2009-

Category of Sales forceOn or after 01.10.2009
Departmental Employee2.5 % of renewal premium
Field Officer2.5 % of renewal premium
Direct Agent2.5 % of renewal premium
Gramin Dak Sevaks2.5 % of renewal premium

6. Procurement Incentive rate for Development Officer(DO):

6.1 – A DO is responsible for training and nurturing of Direct Agents in her/his Division. DO will act as a mentor and guide in procurement of new business to the Direct Agents working under her/him. Therefore, DO will be paid procurement (First Year) incentive based on the new business procured by all Direct agent working under him/her jurisdiction.

6.2 DO will be paid incentive @ 1% of PLI first year premium procured by all Direct Agents attached to the that DO.

6.3 DO will be paid incentive @ 1% of RPLI of first Year premium procured by all Direct Agents attached to that DO.

7. Termination of Agency and superannuation/Discharge from Services:

7.1 No Procurement /Renewal incentive will be payable to sales force of PLI and RPLI after the termination/cancellation of her/his agency.

7.2 No procurement/renewal incentive will be payable to Departmental Employees/GDS after superannuation/Discharge from the service of the official.

7.3 If a sales Force does not procure a minimum a four new policies in a financial year, the license(provisional/Permanent) of the sales force may deemed to be terminate. In case, if the said sales force, whose license has been terminated on account of non-procurement of four policies in a financial year, wants to procure PLI/RPLI business, then she/he may apply afresh for license and a new agency code will be allocated to her/him. Under no circumstance , the terminated license of the sales force shall be reactivated.

8. This issues with approval of the competent authority.

(Gurwinder Singh)
Deputy Divisional Manager-I

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