Hey, friends today I am going to tell you about PLI Incentive Structure. Recently, the postal directorate issued a letter on the PLI revised incentive structure. It is also known as PLI new incentive structure.

PLI RPLI revised incentive structure 2020

In view of the concerns raised by the Circles in implementing the promotional structure, low growth in procurement if new PLI RPLI business and decreasing trend in net accretion of PLI RPLI premia, the existing sales structure of PLI RPLI has been revamped based on the feedback received from circles.

The PLI promotional (sales) and PLI/RPLI incentive structure was last revised in August 2016 and April 2017 respectively. However, most circles had raised concerns in the implementation of the revised new incentive structure of PLI/RPLI. Therefore, a new revised PLI/RPLI incentive structure published in 2020. It will be effective from 01 July 2020.

New PLI Incentive Structure

Procurement incentive

01. Procurement incentive rate for PLI policies other than Anticipated Endowment Assurance (i.e. WLA, CWLA, EA, Children Policy, and Yugal Suraksha)
  • Premium paying term- up to and equal to 15 years- 4% of first-year premium income
  • Premium paying term- more than 15 years but less than or equal to 25 years- 10% of first-year premium income
  • Premium paying term- more than 25 years- 20% of first-year premium income

02. Procurement incentive rate for PLI Anticipated Endowment Assurance
  • Premium paying term- less than or equal to 15- 5% of first-year premium income
  • Premium paying term- more than beyond 15 years- 7% of first-year premium income

Procurement incentive rate for PLI policy for Development Officer (DO PLI)

The development officer (DO PLI) will be paid PLI incentive at the rate of 1% of the total PLI new business premium (NBP) procured by Direct Agents attached to that DO.

Renewal PLI incentive 

Renewal PLI incentive at the rate of 1% of renewal premium will be payable to all sales force of PLI. No renewal incentive on PLI policies will be paid to DO (development officer).

New RPLI Incentive Structure

Procurement incentive on RPLI

For all types of RPLI policies, each category of the sales force will get procurement incentives at the rate of 10% of the procurement premium.

DO will be paid procurement incentive @ 1% of total RPLI new business premium (NBP) procured by Direct Agents attached to that Development officer.

Renewal incentive on RPLI

For all types of RPLI policies, each category of sales forces will get a renewal incentive @ 2.5% of the renewal premium. No renewal incentive on RPLI policies will be paid to development officers.

PLI/RPLI Incentive on online /cash/pay policies

Procurement incentive at the rate prescribed above will be payable on PLI/RPLI policies in case of online/cash/pay policies.

renewal incentive at the rate prescribed above will be payable on PLI/RPLI policies in case of online/cash/pay policies.  

No renewal incentive will be payable in case of pay policies.

PLI incentive structure PDF download

I have already shared all the information about PLI RPLI incentive structure but you can also download PLI incentive structure PDF from the below link.

Download the full PDF here.



PLI incentive structure, RPLI incentive structure


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