Entrepreneurship opportunity

ENTREPRENEURSHIP OPPORTUNITY AS
LIC'S "CITY CAREER AGENT"
Kamlesh Gurbuxani, AIII, CFPCM
Development Officer
LIC of India
Presents

We groom Ordinary People to
earn Extraordinary Wealth
and make them
STAND OUT FROM THE CROWD

What is City Career Agent?
• “City Career Agent” is an Exclusive Career
opportunity provided by LIC of India to Fresh
Graduates, Post Graduates and MBAs to
become an Entrepreneur.
• It is Premier Agency Channel (like Nexa of
Maruti Udyog) which will cater to Upper
Middle Income and High Net worth
Individuals.
• Agents will also deal with Corporates for
Business Insurance.

What is City Career Agent?
• It is a full time Career Opportunity.
• It is different from Regular Agency as City
Career Agents are paid Stipend of Rs-7000
per month over and above the commissions
payable during 1st year of Agency.
• Total earnings during 1st year will be above
Rs-25,000 if one performs all the mandatory
activities required of them.
• Total earnings by the end of 3rd Year will be
above Rs-1,00,000 per month.

Activities Required
Following Activities are Mandatory for City Career
Agents:
• Attend Training Sessions Regularly.
• Preparing Prospect list of at least 100 People.
• Meeting at least 4 Prospects Daily.
• Writing Daily Activity Report and Preparing
weekly summary.
• Attend Weekly Review Meetings.

Selection Process
• Send your resume on
career@licguru.in
• Appear for Personal Interview.
• Appear for Aptitude Test.

Selection Process
After Selection:
• 25 Hours Classroom/Online Training.
• Passing of IRDA Examination.
• Induction Training for 25 Hours.
• Issue of Appointment Letter By LIC of
India.
• You will be attached to LIC of India
Bhandup (w) Branch on LBS Marg,
Mumbai.

Fees Payable
Fees:
• ` 150 Registration Fees.
• ` 150 Online Training Fees. No Charges for
Classroom training.
• ` 425 IRDA Examination Fee.
Total: ` 725 for Online Training OR
` 575 for Classroom Training.
Cost of IRDA Study material will be extra.

Other Requirements
Compulsory:
• Laptop with Printer
• Software
• Smart Phone
Optional but Desired:
• Two wheeler/Car

About Us
• You will be trained by Shri Kamlesh
Gurbuxani, Development officer, popularly
known as GURU in LIC of India.
• He is Associate of Insurance Institute of India
and first Development officer in the country
to complete Certified Financial Planner (CFP)
certification.
• Training of agents is his main forte. He has
compiled two books namely “PRERANA” and
“DISHA” exclusively for LIC agents.

About Us
He is committed to create a
team of Young Entrepreneurs
and make a difference in their
lives.

Support from our side
• We have well stocked library of Books, Audio and
Video CDs on life Insurance and self development.
• You will be trained on Need Based Selling
techniques.
• Your activities will be monitored regularly to insure
that you achieve your desired target on time.
We will make sure that your income will be
Minimum Rs-1,00,000 per month within 3 years
time.

This Opportunity
is for Only 10
Select People.

To Explore Further about this
Profession, go through the
Following Slides
OR Call on
9869624991
for Appointment

Introduction
• LIC agent is the person who provides advice on
Life Insurance Planning to people to protect
their family from unexpected events of death,
disability and retirement of the bread winner.
It is a noble profession indeed.
• LIC agent also contributes to economic
development of the country. As the money
collected towards life insurance premium goes
towards Nation Building Activities e.g: Roads,
Railways, Ports, Bridges, Water supply,
Electricity, Housing etc.

Job Profile of LIC Agent
The main job of LIC Agent involves:
•Prospecting: Identifying the prospective
customers and fixing appointment.
•Need Analysis: Identifying the needs and
getting the prospect agree that need exists.
(i.e. Family Income Provision, Children
Education and Marriage Provision or
Retirement Income Provision.)

Job Profile of LIC Agent
• Plan Presentation: Suggesting suitable
plans that fulfil the needs as agreed by
the prospect.
• Closing the Sale: Convincing the prospect
that you have suggested the best possible
solution for his needs and ask for the
order.
• After Sales Service: Provide efficient after
sales service and claims settlement.

Attributes You Should Possess
To become Successful LIC Agent:
• You should be outgoing and love to meet
people.
• You should be ambitious to start your own
Business.
• You should have Good Communication
Skills.
• You should have lot of Perseverance.
• You should be willing to work hard with lot
of Dedication and Devotion.
• You should be prepared to accept
rejections as stepping stone.

Benefits of LIC Agency
as a Career
• LIC agency is considered today as the highest
paid profession in the world.
• It also provides you with the Royalty Income.
• You can start your own Business with less Capital
Investment.
• You have freedom to set your own working
hours.
• You have the opportunity to earn as per your
potential.
• Your work gets easier and less demanding as
your business grows.
• You can Pass this Business to your next
Generation as a legacy.

Market Potential
1. Indian Insurance Market:
• It is one of the least Insured Market in the world.
• Out of total insurable population only 40% are
covered till today.
• These 40% also are also not adequately covered.
• Only 20% of total agency force is working as
Professionals, and these 20% brings 80% of total
life Insurance business.
We will help build your career as a
professional agent and make sure that you will
be among these top 20% agents.

Market Potential
2. Growth Opportunities:
a. Low Insurance Penetration.
b. Low Insurance Density.
c. Low share of world premium.
d. High per capita Savings.
e. Increase in working population.
f. Growth in personal Income.
g. High Consumer Awareness.
h. Strong LIC brand.

Market Potential
a. Low Insurance Penetration:
• Insurance penetration is measured by
Premium as a percentage of GDP.
• We will come to know about the potential
when we compare the difference in
penetration level in India with other
countries of the world.

Source: Swiss Re, Sigma 03/2016
Country
Penetration
(%)
Taiwan 15.74
Hong Kong 13.31
South Africa 12.00
Japan 8.27
UK 7.53
South Korea 7.30
Denmark 6.74
Italy 6.62
Singapore 5.55
USA 3.05
India 2.72
The penetration level in
India for the year 2015-
16 is about 17% of
Taiwan, 23% of South
Africa and 33% of Japan.
The above figures show
that there is tremendous
potential available in
India to match the
figures of Asian and
other countries of the
world.

Market Potential
b. Low Insurance Density:
• Insurance Density is the ratio of
premium to total Population.
• We will come to know about the
potential when we compare the
difference in Insurance Density in India
with that of other countries of the
world.

Country
Density in
USD
Hong Kong 5655
Switzerland 4078
Finland 4049
Taiwan 3396
UK 3291
Singapore 2931
Japan 2717
USA 1719
South Korea 1601
China 153
India 43
World Average 345
Insurance Density for
the year 2015-16 in India
is just 12% of the world
average and only 0.76%
of Hong Kong.
There is huge potential
available just to reach
the world average and to
reach the figures of
Asian and other
countries the scope is
phenomenal.

Looking at the very
low volume of life
insurance premium of
India, we can assess
the available potential
of Indian Life
Insurance Market.
Market Potential
c. Low Volume of Life Insurance Premium:
Rank Country
Market
Share
1. USA 28.90%
2. Japan 9.88%
3. China 8.49%
4. UK 7.03%
5. France 5.06%
6. Germany 4.68%
7. Italy 3.62%
8. South Korea 3.37%
10. Taiwan 2.11%
12. India 1.58%

Market Potential
d.High per capita Savings:
• Indian People are good savers. Indian
Gross household saving in financial
sector is 10% of GDP for the year 2014-
15.
• The share of life Insurance premium
was 19% of gross house hold savings.
(Source: RBI Annual Report 2014-15).
Above Saving Habits of Indians Shows
that People Believe more in LIC for
Savings.

Market Potential
Report on the savings pattern states that:
83% save for emergencies,
81% for Children’s education,
69% for old age,
63% to meet future expenses towards
marriages, birth and social ceremonies.
The above pattern indicates tremendous
scope for life Insurance products.

Market Potential
e. Increase in working population:
• India has about 40% of young population at
present i.e. age group 20 to 49 years. This is
expected to grow to 65% by the year 2020.
• Research by Morgan Stanley shows that India’s
working-age population will increase by 136
million by 2020. (China’s working-age population,
by comparison, will grow by 23 million.)
The expected increase in young working
population shows the potential available in India
for Life Insurance Business.

Market Potential
f. Growth in personal Income:
As per report of National Council of Applied
Economic Research (NCAER) 2010-11,
• There are 31.4 million families ( 160 Million
Individuals) with incomes between Rs 3.40 lakh
and Rs 17 lakh per annum ( at 2009-10 price
levels).
• The number of such households will be 53.30
millions ( 267 million individuals) by 2015-16.
• By 2025-26 it will be 113.80 Million Families
( 547 Million Individuals) i.e. 37.20% of total
population.
• The report said that two thirds of the Indian
middle class is to be found in urban India.

Market Potential
g. High Consumer Awareness:
• Splitting of joint families, absence of social
security scheme and opening up of Insurance
sector has contributed to increased awareness
about life Insurance.
• Rigorous advertisement by 24 life Insurance
companies has made people realize about
importance of Life Insurance.
• The total First year Premium of life insurance
industry has increased from 9,707 Crores in the
year 2000-2001 to 1,38,657 Crores in the year
2015-16, showing a compounded annual growth
of 19.40% during last 15 years.

Market Potential
h. Strong LIC Brand:
• You will be associated with one of the leading
Life Insurance Company of the world. The
brand image of LIC of India is huge, people in
India identifies life Insurance as LIC only.
• Brand Value of LIC is ` 22,00,000 Crores, and
you will be using that brand on your card.
Thus selling life Insurance policies for
LIC of India is much easier.

Market Potential
Market Share of LIC of India as on 31/03/2016 is as under:
The above figures shows dominance of LIC of
India even after 16 years of opening of the
Insurance sector to private companies.
First Year
Premium
in Crores
Market
Share
Number of
Policies
Market
Share
LIC of India 97,674 70.44% 2,05,46,749 76.84%
All 23 Private Companies 40,983 29.56% 61,93,339 23.16%
Total 1,38,657 2,67,40,088

Market Potential Summary
• The least Insured life Insurance Population,
• Paucity of Professional Agents,
• Low Insurance Penetration and Density,
• Low Volume of Life Insurance Premium,
• High rate of personal savings,
• Young working population,
• Burgeoning Middle and Higher income class,
• Rising Insurance awareness and
• Strong Brand image of LIC of India
All these positive aspects provide you with
tremendous opportunity to build your career as
a Professional LIC agent.

Remuneration
During the First Year of
your agency you will be
paid Stipend of Rs-7,000
per month

Remuneration
• Other remuneration will be paid to you in the
form of Commission as percentage of premium
collected through the policies sold by you.
• It is not a one time commission on a sale made
by you.
• It provides you the royalty income through out
the term of policy. As long as policyholder pays
the Premium you will get the commission.
• Moreover this commission is hereditary i.e. it
will be paid to your nominees even after your
death.

Remuneration
The Commission rates on regular premium
policies are as under:
• First year Commission : 7.5% to 25%
• Bonus Commission : 40% of first year
commission.
• Renewal Commission:
2nd and 3rd Year of Policy : 2% to 7.5%
4th year onwards : 2% to 5%

Remuneration
Example of Commission on Regular Policy of
Premium paying Term 15 years and above:
• 1st Year Commission : 25% of Premium.
Bonus Commission : 40% of first year
Commission (i.e. 10% of Premium)
Total 1st Year Commission: 35% of Premium
• Renewal Commission:
2nd & 3rd Year of policy : 7.5% of Premium
4th Year onwards : 5% of Premium

Your Expected Income for Next 5 years:
Year
Expected
New
Premium
Expected Income
1st year 2nd year 3rd year 4th year 5th year
1st 12,00,000 4,20,000 90,000 90,000 60,000 60,000
2nd 24,00,000 8,40,000 1,80,000 1,80,000 1,20,000
3rd 36,00,000 12,60,000 2,70,000 2,70,000
4th 48,00,000 16,80,000 3,60,000
5th 60,00,000 21,00,000
TOTAL 4,20,000 9,30,000 15,30,000 21,90,000 29,10,000
Monthly 35,000 77,500 1,27,500 1,82,500 2,42,500
As Years pass by your Renewal Commission keeps on increasing thereby
assuring you a pension for the next 20 to 25 years even when you stop
working OR will be paid to your family in event of your death.

Remuneration
We will make sure through our
meticulous training that your
earnings should be as per the chart
shown,
but that requires willingness on
your part to take lot of physical
pain.

Club Memberships
Club Membership is the
recognition bestowed upon the
agents to increase their status in
the society and in the
Corporation.

Club Memberships
Following are the levels of club membership
depending up on the Business performance:
• Distinguished Club.
• Branch Manager’s Club.
• Divisional Manager’s Club.
• Zonal Manager’s Club Member.
• Chairman’s Club.
• Club Galaxy.
• Corporate Club.

Club Memberships
Following additional benefits are given over
and above the commissions’ payable:
1. Office Allowance to maintain your own office.
2. Telephone/Mobile bill reimbursement.
3. Reimbursement of Sales Promotional Gift
items.
4. Interest free advance for purchase of
Car/Motorbike.
5. Interest free advance for purchase of office
equipment.
6. Interest free advance for Training.

Club Memberships
7. Interest free Festival Advance.
8. Housing loan at concessional rate of interest.
9. Term Insurance and Mediclaim benefits.
10. Guest house facility throughout India at
concessional rates as applicable to employees.
11. Annual Convention

Club Memberships
The total monetary equivalent
of all above benefits ranges
from `5,500 to `6,20,000,
depending up on level of Club
Membership.

Gratuity
Agents are entitled to get the gratuity at
age 60/65 years after serving for
minimum 15 years.
At present the Maximum Gratuity
amount payable is ` 2,00,000.

International
Recognition from MDRT
• Founded in 1927, the Million Dollar Round Table
(MDRT), The Premier Association of Financial
Professionals, is an international, independent
association of nearly 36,000 of the world's leading
life insurance and financial services professionals
from more than 430 companies in 78 countries.
• MDRT members demonstrate exceptional
professional knowledge, strict ethical conduct and
outstanding client service.
• MDRT membership is recognized internationally as
the standard of sales excellence in the life insurance
and financial services business.

International
• To qualify for the membership of
MDRT, agents have to earn the
prescribed First Year Commission
excluding the Bonus Commission
OR brings prescribed First Year
Premium during the Calendar year.

There are three levels of Membership with criteria for MDRT 2017:
International
Sr.
No.
Membership Criteria
First Year
Commission
without
Bonus
First Year
Premium
1. MDRT Basic ` 8,74,000 ` 34,96,000
2. Court of the Table- COT
3 Times
MDRT
` 26,22,000 ` 1,04,88,000
3. Top of the Table -TOT
6 Times
MDRT
` 52,44,000 ` 2,09,76,000

Through our training process we
will make sure that you will
qualify for Basic MDRT by the
end of 3rd year of your agency.
International

First Year Commission of
Top 10 TOT-2014 Qualifiers from LIC
Rank Name Branch
First Year
Commission
Excl. Bonus
Commission
1. Shri V VENKATESWARA RAO Vishakhapatnam 2,05,09,585
2. Smt SANGITA MAHESHWARI Indore 1,77,58,368
3. Shri BHARAT V PAREKH Nagpur 1,09,52,152
4. Shri RAVINDAR JETHANI Mumbai 1,01,24,090
5. DR.BALWANT SINGH CHIRANA Delhi 88,11,908
6. Shri AUTI DATTATRAY JAYRAM Mumbai 86,46,357
7. Shri PULKIT KHANDELWAL Delhi 70,71,261
8. Shri BHIMAN DAS Kolkata 67,92,431
9. Shri DEEPAK DHABALIA Mumbai 66,31,879
10. Smt HEENA HITESH SHAH Mumbai 66,01,442

We Thank you for Reading Such a Long
Presentation Till End.
If you have made up your Mind to Work Full
Time and Be an Entrepreneur mail your
resume on career@licguru.in.
If you need any further clarification feel free
to call on 9869624991.
We will appreciate if you can forward this
Presentation to your friend who has burning
desire to become an entrepreneur.

Entrepreneurship opportunity

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