How to Become a LIC Rural Career Agent
India’s number one Life Insurance Company known as Life Insurance Corporation of India introduced the Rural Career Agent Scheme in 1979. Later, when the Insurance Regulatory and Development Authority (IRDA) was established in 1999, the scheme underwent several changes.
In today's post of Jeevan Bima Bazaar, an attempt is being made to present complete information about Rural Career Agent. This information is basically being presented keeping in mind the current situation. Before giving information for Rural Career Agent, the author has studied all the circulars of LIC available in this context and after that decided to present this post.
If you are a Development Officer or Chief Life Insurance Advisor (CLIA) in Life Insurance Corporation of India. So this post will prove to be very useful for you. If you want to start working as an agent in Life Insurance Corporation of India and you are a resident of rural area. In such a situation, this post will also prove to be very useful for you. If you take LIC agency according to this rule. Then there are some other benefits that are available to normal agents in addition to the benefits they get. You will also be eligible for that.
If you are a development officer or CLIA of LIC. So at the end of this post, LIC circular and some other documents are being shared to give you information related to "Rural Career Agent". You can download it and use it to improve your business.
Age, Qualification and RCA Recruitment Conditions
To become an RCA Agent in Life Insurance Corporation of India, it is mandatory to follow IRDA Regulations 2000. IRDA may amend it from time to time.
If a person wants to work as an RCA Agent in LIC. Then it will be mandatory for that person to undergo training and then pass the examinations issued by IRDA.
Age Limit:
Minimum Age- 18 years
Maximum Age- 35 years (40 years for SC/ST candidates)
Educational Qualification
The minimum educational qualification required to become a Rural Career Agent is 10th pass.
Residence Certificate
To become a Rural Career Agent in LIC, the candidate must be a rural resident. For this, the candidate has to submit his permanent residence certificate.
Definition of Rural Area
Rural Career Agents are selected from rural areas. In such a situation, it is important for us to know what is considered a rural area according to Life Insurance Corporation of India?
Life Insurance Corporation of India follows the rules of IRDA for this. IRDA has defined rural areas in the following manner. According to the rules of IRDA, rural area means those places which have not been classified as urban areas while conducting the census of India.
In the 2008 census of India, urban areas have been defined with a special definition. Which is as follows
All statutory places along with Nagar Palika, Corporation, Cantonment Board or Notified Town Area Committee, etc.
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If there is a place which fulfills the following three criteria, it will be called an urban area -
A place which has a minimum population of 5000.
A place in which at least 75% of the male population earns their income from some work other than agriculture.
A place having a population density of at least 400 per sq. km.
Any area which does not fulfil the criteria mentioned above. All such areas are considered as rural areas as per IRDA norms and a person residing in such rural area can apply for Rural Career Agent in Life Insurance Corporation of India.
Selection and Training Process for Rural Career Agent
LIC has made a provision to train the candidate applying for Rural Career Agent as per the rules of IRDA. Any person can apply to become a Rural Career Agent in LIC only if he fulfills the following conditions.
He should be an individual i.e. no institution or group can apply for Rural Career Agent in LIC. Any person can apply for Rural Career Agent in LIC.
If a person who is eligible for appointment as a general agent as per IRDA rules. That person can apply for Rural Career Agent in Life Insurance Corporation of India.
A person who is able to give his time and attention as an agent of the corporation can apply for Rural Career Agent of LIC.
A person who is not engaged in any other business or if that person is doing any other business from which he is not getting sufficient income. That person can apply for Rural Career Agent in LIC.
A person who is a resident of rural area. He can apply for Rural Career Agent in LIC provided he has to submit the proof of his residence.
Benefits to Rural Career Agent
If after becoming an agent in LIC, that Rural Career Agent works according to the terms and conditions of the Corporation, then he is given a stipend by the Corporation.
Currently, if a Rural Career Agent fulfills the terms and conditions of LIC, then the Corporation gives him a stipend for the first 2 years. A Rural Career Agent is given a stipend of ₹5000 per month in the first year of his agency. In the second year, a stipend of ₹4000 per month is given.
Minimum Monthly Target to Receive Stipend
The performance of the selected Rural Career Agent will be reviewed every month to ensure whether he is eligible to receive the Rural Career Agent stipend or not. The review of the performance of the Rural Career Agent for stipend starts from the date of his appointment. During this period, the number of policies sold by him (on life basis) and the first year commission (excluding bonus commission) will be counted.
Let us understand the terms and conditions prescribed by Life Insurance Corporation of India for minimum monthly turnover for a Rural Career Agent to receive stipend
| Month | Number of Lives | Monthly Commission (Excluding Bonus Commission) |
|---|---|---|
| 1 | 2 | ₹1200/- |
| 2 | 2 | ₹1200/- |
| 3 | 2 | ₹1200/- |
| 4 | 2 | ₹1200/- |
| 5 | 2 | ₹1200/- |
| 6 | 2 | ₹1200/- |
| 7 | 3 | ₹2800/- |
| 8 | 3 | ₹2800/- |
| 9 | 3 | ₹2800/- |
| 10 | 3 | ₹2800/- |
| 11 | 3 | ₹2800/- |
| 12 | 3 | ₹2800/- |
| Total | 30 | ₹24,000/- |
Instructions for Rural Career Agent
If you want to apply in LIC to become a Rural Career Agent or you are currently doing life insurance business as a Rural Career Agent, then you have to understand what rules you have to follow to get a fixed monthly stipend-
If you want to get your stipend on time every month, then you have to complete the target of minimum policy on life basis and first year commission (excluding bonus commission) as per the rules shown in the table above.
If a Rural Career Agent is unable to complete the minimum policy (on life basis) or first year commission (excluding bonus commission) or both in any month of his agency, then he will not be given the stipend of that month. But this does not mean that his stipend will be lost. If he completes the target of the previous month by doing more business than the target given in the current month in the remaining months of the same agency year, then he will get his outstanding stipend.
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In every case, for calculation of stipend, first of all the policies sold for the current month and commission received from it will be calculated. Only after this, calculation will be done in reverse order.
For Example- If an agent does not do any new business in the sixth month of his agency, then he will not get stipend for the sixth month of his agency. Now in the seventh month, to get monthly stipend, he will have to sell policies to 3 people and get commission of ₹ 2800.
Now suppose that that rural career agent sells life insurance policy to 2 people in the seventh month of his agency, from which he gets commission of ₹ 2000, then what will happen?
If we look at the above example carefully, then in the seventh month that agent has not completed the quota of the seventh month, but he has completed the quota of the sixth month. In such a situation, he will not get stipend for any month. Because it will be mandatory for that agent to complete the quota of the seventh month first. Once the quota of the seventh month is completed, the remaining work for the previous month will be calculated.
If a Rural Career Agent is unable to complete the quota of any month set by LIC in any month of his agency year, then he can complete the remaining quota by the end of the same agency year and receive the outstanding stipend. If the quota is not completed by the end of the agency year, the outstanding stipend lapses.
If a Rural Career Agent completes the quota of the entire agency year in the first month of his agency, then he will be eligible for monthly stipend. For example - Suppose a Rural Career Agent sold life insurance policies to 30 people in the first month of his agency, due to which he gets a commission of more than ₹ 24,000. Even if such an agent does not do any work in the remaining months of that agency year, he will continue to receive his stipend every month.
Documents Required for Rural Career Agency
If you are a resident of rural area and want to start insurance business as a Rural Career Agent in LIC, then for this you will have to submit some important certificates. Let us know what documents are required for Rural Career Agent-
Photo: To apply for Rural Career Agent, you have to submit a recently taken color photo. I have not received any written information regarding how many photos you have to submit. To get accurate information in this regard, you can contact the Development Officer or CLIA of LIC.
Age Proof: To apply for Rural Career Agent, you have to submit a valid age certificate. Any of the following documents can be submitted for a valid age certificate - Certificate issued by school (high school mark sheet, transfer certificate, etc.), Aadhar Card, PAN Card, Driving License, Passport, etc.
Residence Proof: To apply for Rural Career Agent, you have to submit a valid residence certificate. For this, any one of the following documents can be submitted- Aadhar Card, Driving License, Passport, Ration Card, Electricity Bill, etc.
Photo ID Card: To apply for Rural Career Agent, you will have to submit a photo identity card of a valid level. For this, any one of the following documents can be submitted- Aadhar Card, Driving License, Passport, etc.
Certificate of Educational Qualification: To apply for Rural Career Agent, you will have to submit a certificate of your educational qualification. For this, you will have to submit a certificate issued by your school or college.
How to Apply for Rural Career Agent
To become a Rural Career Agent in LIC, the following steps have to be followed in a sequential manner.
Selection of LIC Branch Office
If you want to start business as a Rural Career Agent in LIC, then for this you will have to choose the nearest branch office.
Advoice: While selecting the branch office, keep in mind that whichever branch office you apply for the agency from, after becoming an agent, you will always work for the same office. Although there is a provision for agency transfer if needed, but it is a very difficult task. Therefore, our suggestion would be that you choose the branch office of LIC very carefully.
If you want to know which Branch Office of LIC is available near you, then keeping your convenience in mind, a link is being given below. You can easily find your nearest branch office by clicking on the button given below.
Whom to Contact
The Development Officer and Chief Life Insurance Advisor (CLIA) have the authority to appoint agents in LIC. So, if you want to start life insurance business as an agent in LIC, then for this you should go to your nearest branch office and contact the concerned Development Officer or CLIA.
Advice: Here also our suggestion for you would be to be very careful while selecting the Development Officer or CLIA. Because once your agency is attached to any Development Officer or CLIA, as long as you continue doing life insurance agency business, you will have to do insurance business with the same Development Officer or CLIA.
Keeping your convenience in mind, we are updating the list of LIC's Development Officers and CLIA on our website. You can contact your nearest Development Officer or CLIA by clicking on the link given below.
Complete the Application Form
Once you contact the LIC Development Officer or CLIA, you have to fill the application form for appointment as a rural career agent. After filling the form completely, all the necessary documents like photo, photocopy of photo identity card, photocopy of residence certificate, photocopy of age certificate and photocopy of educational qualification certificate have to be submitted to the Development Officer or CLIA.
Have to Join the Training
Before joining LIC, it is very important for you to know about the corporation. For this, the corporation organizes training programs from time to time. For this, you have to deposit a fee of ₹ 250 in the branch office of LIC. After this, before starting insurance business as a rural career agent in LIC, it will be mandatory for you to join a 100-hour training program. After completing the application form and depositing a fee of ₹ 250, you should get information about this training from your development officer or CLIA.
Passing IRDA Exams
Once you complete the training program of LIC, you will have to pass the exams released by IRDA. You will get complete information about appearing in the exams released by IRDA from your Development Officer or CLIA.
Once you pass the exams released by IRDA, IRDA issues a unique code for you, this code issued by IRDA is your license which allows you to do insurance business as a life insurance agent anywhere in India.
Passing the Interview
When you pass the exams released by IRDA, you have to appear for an interview, which is usually held in your branch office and you get information about it from your Development Officer or CLIA. You have to pass this interview.
Allotment of Agency Code
Now when you clear the LIC interview, once again you have to submit your photo, photo identity card, age certificate, residence certificate, educational qualification certificate, certificate of passing the examination issued by IRDA.
Apart from these documents, you have to submit a photocopy of your bank passbook or a cancelled cheque and a photocopy of PAN card. So that your commission, stipend and all other payments can be given to you in your bank account. Along with this, you also have to submit the NEFT form, you get this form from the branch office of LIC.
Once you submit all these documents, the concerned branch office of LIC issues a unique code for you. This unique code is your identity in LIC which is called agency code.
PDF File for Rural Career Agent
If you are a Development Officer or CLIA Agent in LIC and you are looking for a presentation file to become a Rural Career Agent. So we are providing this file for you. Along with this, two circulars of LIC for Rural Career Agent are also being shared with you.
You can download these files by clicking on the link button given below. These files are saved in zip format. Once these files are downloaded, the received file has to be extracted, after extracting you will be able to use these files.
If you are a mobile user, then you can use a free application named zarchiver to extract the files and if you are using a laptop or desktop, then you can use a free software named 7zip for this work.
Know in Detail in the Video
To know more about the information given in this article, watch the video given below carefully till the end. If you have any questions in this regard, then write your questions in the comment box of the video.
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