Do you know what is Postal Life Insurance Incentive Structure in post office? 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.

What is PLI Incentive? Types of PLI Incentives

The Postal Directorate has issued an order on PLI/RPLI incentive Structure on 25.06.2021. As per this order, PLI incentive structures are categorized into two types. These are as under-

  1. Procurement Incentive on PLI
  2. Renewal Incentive on PLI

PLI Incentive Structure

Procurement PLI Incentive Structure

Procurement PLI Incentive- The incentive payable in the first year (First 12 months) of any new PLI policy is known as procurement PLI incentive. A premium for the first 12 months of a PLI policy is a procurement premium. 

The procurement PLI Incentive rate for PLI policies other than Anticipated Endowment Assurance (AEA) is as under-

PLI Incentive on WLA, CWLA, EA, Children Policy and Yugal Suraksha

Up to equal to 15 years

4% of first-year premium

More than 15 years but less than or equal to 25 years

10% of first-year premium

More than 25 years

20% of first-year premium


Procurement PLI Incentive rate for Anticipated Endowment Assurance Policy (AEA) is as under-

PLI Incentive on Anticipated Endowment Assurance Policy

Less than or equal to 15 years

5% of first-year premium

With term beyond 15 years

7% of first-year premium



Renewal PLI Incentive Structure

Renewal PLI Incentive- The incentive payable on the renewal of PLI policy is known as Renewal PLI incentive. Premium received from the 13th month onwards in a PLI policy is a renewal incentive.

Renewal PLI Incentive on those PLI policies that procured between 01.10.2009 to 31.03.2017

Departmental Employees

Nil

Field Officer

2% of renewal premium

Direct Agent

2% of renewal premium

Gramin Dak Sevaks

Nil



Renewal PLI Incentive on those PLI policies that procured between 01.04.2017 to 30.06.2020

Departmental Employees

Nil

Field Officer

2% of renewal premium

Direct Agent

2% of renewal premium

Gramin Dak Sevaks

Nil 



Renewal PLI Incentive on those PLI policies that procured on or after 01.07.2020

Departmental Employees

Nil

Field Officer

1% of renewal premium

Direct Agent

1% of renewal premium

Gramin Dak Sevak

Nil




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.

FAQs

Question 01. Can sales force of PLI RPLI procure insurance business from outside their parent Postal Division?

Answer- 
Clarification by PLI Directorate:
(i) The sale force of PLI RPLI may procure PLI RPLI business from anywhere in a Postal Circle.
(ii) In such cases, PLI RPLI policy will be indexed at the HO CPC nearest to the address/place of residence of the insurant.
(iii) No TA/DA will be payable to the sale force of PLI RPLI for procuring PLI RPLI business.

Question 02. Is Sorting Assistant/AAO/PACO Cadre eligible to procure PLI RPLI business?

Answer- 
Clarification by PLI Directorate:
Yes, all categories of Departmental employees drawing salary up to the level-8 (as per 7th CPC) including MTS, postman, PA, SA, PACO, IP, AAP, ASP, etc. are eligible to procure PLI RPLI business.
The present system of procuring PLI RPLI business outside office hours by departmental employees will continue.

Today I discussed on PLI incentive Structure. How much post office employee gets PLI incentive? you can know after reading this post.