How to Apply for PLI Agency
In this article we will discuss how to become a PLI agent in Post Office, what is the job profile of a PLI agent and what is salary/incentive payable to PLI agents. If you want to become a PLI agent or want to take a PLI agency, here we cover all aspects of how to get a PLI agency.
As we are aware postal life insurance is the oldest insurance scheme of the Government of India. There are more than 64 lakh PLI policies and 2.50 Crore Rural PLI. These policies are procured by the PLI/RPLI agents.
- Mainly policies are procured by the Departmental employee of the DOP, however, Direct agents have a good opportunity to become PLI agents in the Post office.
- In this article, we will discuss how to become a PLI agent and the commission rate for PLI agents. Normally every Postal Division in the Posta Circle calls for applications for Direct Agents from the public from time to time.
- Citizens who are willing and eligible can apply for the Post office PLI Agent. The details process, eligibility, incentive, and terms, and conditions will be as under:-
How can I become a PLI agent in the post office:-
Who can become PLI agent | Eligibility for PLI Agent:-
Direct Agent PLI – A Direct Agent is an Insurance Agent engaged from the open market by PLI, who receives payment by way of commission in consideration of her/his procuring PLI/RPLI business including business relating to the continuance, renewal, or revival of Postal life insurance policies year to year if any.
What is the qualification for PLI agent?
- Age: The mini. and maxi. age of the applicant shall be 18 years and 50 years respectively on the date of the “walk-in interview for the PLI agent.
- Educational Qualification for PLI Agent: The applicant must have passed the 10th standard or equivalent examination conducted by a Board recognized by the Central/State Government to become a PLI agent.
Who is eligible for PLI Agency:
Unemployed/self-employed persons, former agents of any insurance company, any Ex-servicemen, Anganwadi workers, Mahila Mandal workers, Retired school teachers, SHGs, village Gram Pradhan, Members of Gram Panchayat or any other person as found suitable by the Head of Postal Division may apply for PLI agency.
Procedure for enrolment of Direct Agent in Postal Life Insurance
- Calling for Applications for PLI Agency: For engagement of Direct Agents in PLI, the Head of the Postal Division will publish advertisements in local newspapers.
- A notice containing a detailed advertisement will be displayed in the Divisional Office, Sub-Divisional Office, all post offices, and at prominent public places in the Division or local newspaper.
- The advertisement will give a minimum of 15 days’ time for conducting walk-in interviews of persons willing to apply as Direct Agents for PLI.
Sample application form for PLI Agency – Download
- Walk-in-interview for PLI Agent: The willing eligible persons will attend the “walk-in-interview” along with the application form and required certificates on the given date and time as the place mentioned in the advertisement.
- The Interview Board for selection of PLI/RPLI agent shall comprise of (a) an ASP of the Division as the Chairman,(b) a Development Officer, and (c) an official of the Division as nominated by the Divisional Head.
- The walk-in interview will include questions on knowledge of the life insurance industry in India, knowledge of PLI/RPLI products, and knowledge of marketing of insurance products.
- Candidates will be shortlisted on the basis of their performance in the “walk-in interview” for the PLI agency.
- After the interview, the names of candidates recommended for PLI agents by the Interview Board will be put up before the Divisional Head for approval. After approval by the Divisional Head, names of successful applicants will be notified by the Division for PLI Agency.
- The overall responsibility of engagement of Direct Agents will lie with the Head of the Postal Division.
- Each Postal Division in DOP will advertise the intention of the Department to engage Direct Agents at least once in six months.
Security Deposit for PLI agency:-
- After selection as PLI/RPLI agent a cash security of Rs. 5,000/- will be required to be furnished by the selected Direct Agent in the form of a National Savings Certificate (NSC) / Kisan Vikas Patra (KVP) to be pledged to the President of India as security.
- This security will be released on termination of the engagement of the person as PLI Direct Agent or after his death, whichever is earlier, provided no dues is outstanding against the PLI Direct Agent.
- The NSC or KVP will be kept in the custody of the Divisional Head after entering details in a register to be maintained for the purpose in the office of PLI.
Training for PLI Agent :
Each short-listed Direct Agent for PLI/RPLI will be imparted training as under: –
- In-house training for 3 days to be conducted at the Divisional level by PLI. Training will be imparted by the Development Officer /ASP / IP in the departmental training center or other places.
- All shortlisted candidates will be provided agent’s guidebook/study material before the training starts, as prescribed by the PLI Directorate from time to time.
- Agents should clear all their doubts during the training session. Necessary forms may also be provided during the training period. However, format training will be required from III by the Agents for the continuation of their agency from time to time.
- A 3-day Practical training on insurance business at CPCs in the Division will also be conducted for PLI Direct Agents. Practical training will be imparted by CPC in charge and the Development Officer under the guidance of the IP / ASP concerned.
- After completion of in-house and practical training, Direct Agents PLI will be required to clear the licentiate examination from III ( Insurance Institute of India) , as approved by the Department, within 3 years of engagement as Direct Agents.
- There would be no limit on the number of chances a Direct Agent may take for passing the licentiate examination from III.
- The requisite exam fee shall be deposited by the candidate taking an examination on each occasion and this exam may be taken through moble app in online mode.
Process for Issue of License, Agent Code, ID Card to Direct Agent:
- Applicants, engaged as PLI Direct Agents, shall be issued a license, agent code, and identity card by the Divisional Head for the purpose of procuring PLI / RPLI business.
- Initially, PLI Direct Agents will be issued provisional licenses, which will be converted into permanent licenses on passing the licentiate exam from III.
- The permanent license issued to the PLI Direct Agents by the PLI will be valid for a period of 5 years from the date of engagement as a Direct Agent.
- This license will be renewed by the Head of the Postal Division every year thereafter, on the basis of satisfactory business performance by the Direct Agent in PLI.
- The agency will stand terminated if the Direct Agent fails to clear licentiate examination within a period of 3 years of engagement from III. The agency will also be terminated if the permanent license is not renewed by PLI Direct Agents every year after 5 years of engagement as Direct Agents.
A Selected Direct Agent will be required to deposit a fee of:
(i) Rs 50 /- for the issue of a provisional license,
(ii) Rs. 100/- for the issue of a permanent license,
(iii) Rs. 50/- for the issue of duplicate license/renewal of permanent license.
TA/DA to PLI Agents:
There shall be no provision to provide TA/DA to the Direct Agents for procurement of PLI/RPLI business.
Payment of commission to PLI Agents:
The PLI Direct Agent will be paid procurement/renewal commission for the PLI/RPLI business procured by her/him at the rate prescribed by the Department of Posts from time to time. In case the PLI agency has terminated of Direct Agent due to the given reasons no further procurement/renewal incentive on policies procured earlier will be payable to the Direct Agent.
Power of cancellation of PLI Agency:
The Divisional Head of the Postal Department, on the basis of a report given by the Development Officer PLI, can cancel the agency of the Direct Agent at any time, if she/he is involved in criminal offense, criminal misappropriation, criminal breach of trust, cheating, forgery, abetment of or attempt to commit any criminal offense, misrepresentation, dishonesty, misconduct, fraud, theft, etc.
Retention of PLI Direct Agents.
- PLI Direct Agents so engaged and who have passed the licentiate examination from III shall be retained till 65 years of age, if she/he achieves the allotted target year by year.
- In case the agent age more than 65 years special Permission to procure PLI/RPLI business will be granted by the Divisional Head if the Direct Agent is doing well in procuring PLI/RPLI business, not suffering from any heart /chronic disease, and is physically fit to act as Direct Agent.
- In such cases, the Divisional Head will personally interview the person and accord approval for further retention as a PLI Direct Agent.
PLI Agent Commission Chart- 2020 onwards
- The premium received in respect of the first 12 months of a PLI/RPLI policy is the procurement premium (First Year). The incentive payable on the procurement premium (1st Year) will be a procurement incentive.
- The premium received from the 13th month onwards in respect of a PLI/RPLI policy is a renewal premium. The incentive is payable on renewal premium will be renewal incentive.
PLI Agent Commission Rate-2023 :- New Incentive/Commission Structure of PLI
Procurement Incentive:
Procurement Incentive rate for PLI policies other than Anticipated Endowment Assurance(i.e. WLA, CWLA, EA, Children Policy, and Yugal Suraksha):
PLI Agent Commission Chart latest:-
| Premium paying term | Incentive Structure |
| Up to and equal to 15 years | 4% of first-year premium income |
| More than 15 years but less than or equal to 25 years | 10% of first-year premium income |
| More than 25 years | 20% of first-year premium income |
Procurement Incentive Rate for PLI Anticipated Endowment Assurance Policies:
| Premium paying term | Incentive Structure |
| less than or equal to 15 years | 5% of first-year premium income |
| with term beyond 15 yrs | 7% of first-year premium income |
Procurement Incentive rate on PLI policy for Development Officer (DO):
DO will be paid incentive @ 1% of total PLI new business premium (NBP) procured by Direct Agents attached to that DO.
Renewal Incentive/Commission for PLI Agent:
- Renewal incentive @ 1%of renewal premium will be payable to all sales forces of PLI.
- No renewal incentive on PLI policies will be paid to the Development Officer.
New Commission/Incentive Structure for RPLI Agent
Procurement Incentive for RPLI Agent
- For all types of RPLI policies, each category of the sales force will get a procurement incentive @ 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 DO.
Renewal Incentive for RPLI Agent
- For all types of RPLI policies, each category of sales force will get a renewal incentive @ 2.5% of the renewal premium.
- No renewal incentive on RPLI policies will be paid to the Development Officer.
Incentive on Online/Cash/Pay policies:
- Procurement incentives 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 policies.
- If the monthly premium of the PLI policy is deducted through pay of the insurant no further renewal incentive will be payable in such policies.
What is the Renewal Incentive payable on PLI:-
Renewal incentive at the rate of 2.5% is payable. The premium received from the 13th month onwards in respect of a PLI/RPLI policy is a renewal premium. The incentive is payable on renewal premium will be renewal incentive.
Termination of Agency/Superannuation/Discharge from service:- No procurement/renewal incentive will be payable to a sales force of PLI and RPLI after the termination of her/his agency.
- Departmental Employees/GDS will not be entitled to procurement/renewal incentives payable to them after superannuation/discharge from the service.
- If a sales force does not procure a minimum of Four (4) new policies in a financial year, the license (Provisional/Permanent) of the sales force may be deemed to be terminated.
- In case, if the aid sales force, Whose license has been terminated on account of non-procurement of four(4) policies in a financial year, wants to procure PLI/RPLI business, then she/he may apply afresh for a license and a new agency code will be allocated to her/him.
- Under no circumstance, the termination license of the sales force shall be reactivated.
How much money can a postal life insurance agent make?
Now after getting PLI agency how much you will earn? Let’s examine how much commission you will earn as a PLI agent:Examples:-
PLI Commission 1st year
Assume 4 policies per month with 20
year term and Monthly premium of Rs.5000/ each @10%Monthly premium 5000×48 Yearly Premium Yearly commission @10% 4×12= 48 Policies in Year 240000 2880000 288000 RPLI Commission 1st year Assume 4 policy per month with 15
year Term and Monthly premium of Rs.2000/ each @10%96000 1152000 115200 Total Incentive 403200
After 1st year i.e 2nd year onwards the renewal commission for PLI will be @1% of the total yearly premium collected and RPLI @2.5%.This is the example if you procured a minimum of 8 policies per month, the commission earned may be much more depending on your business performance.
After 1st year i.e 2nd year onwards the renewal commission for PLI will be @1% of the total yearly premium collected and RPLI @2.5%.
PLI Agent portal:-
After successful training in PLI agents and procurement of PLI or RPLI policy, you will be eligible to access the PLI agent portal. we have already explained in detail how to log in PLI portal agent, may check the same. Through the agent portal, you can check and monitor your PLI business effectively. You can check your login portal at India Post Life Insurance (PLI) Agent Portal (https://pliagent.indiapost.gov.in/)Code of Conduct to be followed by the Sales Force of PLI/RPLI
Each category of the sales force of PLI and RPLI shall be required to adhere to the following code of conduct:
1. Each PLI /RPLI sales personnel shall:-
- Always present your ID card when requested.
- Thoroughly explain the important details of the PLI/RPLI insurance products, considering the client’s specific needs when recommending a plan.
- Inform the potential customer about the bonus rate applicable to the insurance product they are considering.
- Clearly state the premium for each type of insurance plan available.
- Advise the future client about the information required in the proposal form and emphasize the importance of providing all relevant details when purchasing insurance.
- Promptly inform the potential insurant whether their proposal has been approved or rejected by the Department.
- Collect the necessary documents when completing the proposal form, along with any additional documents requested by the Department later.
- Assist policyholders, claimants, or beneficiaries in fulfilling the requirements for settling insurance claims.
- Guide policyholders in making nominations, and assignments, changing addresses, and addressing other service requests.
- Immediately deposit the initial or renewal premium received from the proposer at post offices and provide them with the necessary receipts.
- Make every effort to ensure that policyholders pay their premiums on time.
- Share feedback with the Development Officer/Heads of Divisions regarding the business you have generated.
2. No PLI /RPLI sales personnel shall:-
- Engaging in PLI/RPLI insurance activities without a valid or provisional license is strictly prohibited.
- Soliciting or canvassing for any other insurance company besides PLI/RPLI is considered unprofessional and unethical.
- Misguiding potential policyholders to intentionally omit relevant information in the proposal form is a serious breach of ethical conduct.
- Deliberately providing false or misleading information in the proposal form or accompanying documents submitted for approval is a grave offense.
- Treating existing or prospective policyholders with disrespect or discourtesy is unacceptable and will not be tolerated.
- Interfering with or undermining insurance proposals introduced by other agents is considered a violation of professional ethics.
- Offering rates, benefits, terms, or conditions that differ from those officially prescribed by PLI/RPLI schemes is a breach of trust and a violation of company policy.
- Demanding or receiving any share of proceeds from policyholders, claimants, or beneficiaries under an insurance contract is considered a form of bribery and is strictly prohibited.
FAQ
* Source -Indiapost.
Some important instructions were issued by Postal Life Insurance on the Agency system.
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