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Union of India - Section

Section 20 in Life Insurance Corporation of India Class III and Class IV Employees (Revision of Terms and Conditions of Service) Rules, 1985

20. Interpretation.

- Where any doubt or difficulty arises as to the interpretation of these rules, it shall be referred to the Central Government for its decision.[Appendix] [As inserted vide Notification dated 05.09.2005 (GSR No. 561(E)).]Productivity Linked Lump Sum Incentive (PLLI) Scheme(See rule 13A)
Conditions for grant of Productivity linked Lumpsum incentive (1) Grant of Productivity LinkedLumpsum Incentive shall depend upon performance of theCorporation as a whole in the following areas:Growth in NewPolicies:Growth inFirst Year Premium Income:Growth inTotal Premium Income:Early ClaimRatio; andGrowth in Income from Real Estate.
(2) The Productivity Linked Lumpsum Incentivewill be calculated on Financial Year basis and will depend uponthe level of performance achieved by the Corporation on the fiveparameters as mentioned above.
(3) The Productivity Linked Lumpsum Incentivewill be payable only if the achievement of Corporation exceedsthe threshold level on Total Premium Income as specified in theTable (1) below.
(4) The calculation of Productivity LinkedLumpsum Incentive shall be based on the Weighted Average Methodwhich shall be calculated on the five parameters given in item(1) above. The percentage so arrived shall be rounded off tonearest integer. Tire eligible Productivity Linked Lumpsumincentive percentage shall be the Productivity Linked LumpsumIncentive percentage arrived at by applying the Weighted AverageMethod or the percentage of Productivity Linked Lumpsum Incentiveunder Total Premium Income whichever is lower.
(5) The following weightage shall be applied:{|
  Parameter Weightage
(i) Total Premium Income 4
(ii) First Year Premium Income 4
(iii) New Policies 3
(iv) Early Claims Ratio 2
(v) Rental Income 2
|-| (6) Productivity Linked Lumpsum Incentive shallbe payable at the levels of 1%, 2%, 3%, etc. upto a maximum of 6%of the pre-revised wage bill of Class III and Class IV employeesas on the 1st August, 2002 depending upon the achievements of thevolumes in the above mentioned areas as per the tables appendedhereto.|-| (7) The Total Premium Income and First YearPremium Income for the purpose shall be the premium income onindividual assurance policies plus 10% of premium in respect ofJeevan Suraksha and other Individual Pension Plans plus 1.25% ofpremium in respect of Bima Nivesh, Jeevan Akshay and other singlepremium policies, plus 50% of Bima plus, Future plus and likeplans and shall exclude Pension and Group Schemes Premium Income.However a marginal shortfall in any of the five parametersnoted above may be condoned by the Chairman.|-| (8) The amount of Productivity Linked LumpsumIncentive in terms of wage bill shall depend upon the volumesachieved by the Corporation in the areas against the percentagesmentioned for each parameter in the tables below provided theamount of Total Premium Income as specified in Table 1, FirstYear Premium Income as specified in Table 2, number of NewPolicies as specified in Table 3. Rental Income as specified inTable 4 and Early Claim Ratio as specified in Table 5 Income isnot less than the amount of Total Premium Income, First YearPremium Income, number of New Policies, Rental Income and EarlyClaim Ratio, as specified in the respective tables.|-| (9) The Productivity Linked Lumpsum Incentiveshall be distributed as a lump sum annually on or after 1stAugust each year commencing from the 1st April, 2005 for eachFinancial Years from 2005-2006 to 2008-2009.|-| (10) The proposed Productivity Linked LumpsumIncentive shall be distributed among various classes in the ratioof pre-revised salary bill as on the 1st August, 2002 to thetotal wage bill of the Corporation.|-| (11) The Corporation shall be empowered toformulate the decentralized performance norms and to frame theterms and conditions of the Productivity Linked Lumpsum Incentivefor its employees to finally take it to the branch level. TheBoard shall within a period of six months from the date of thisnotification make regulations to take the Productivity LinkedLumpsum Incentive scheme to the Zone or Division or Branch level.|-| (12) The weightage assigned to the parametersshall remain the same as given under item (5).|}Table 1
Productivity Linked Lumpsum Incentive in termsof percentage of wage bill Minimum amount of Total Premium Incomerequired to be achieved (Rs. in crores)
2005-2006 2006-2007 2007-2008 2008-2009
Threshold 71047 83573 98307 115638
1.00% 71626 84204 98999 116402
2.00% 72207 84838 99694 117169
3.00% 72790 85474 100392 117939
4.00% 73375 86113 101094 118713
5.00% 73963 86755 101798 119490
6.00% 74554 87400 102506 120272
Table 2
Productivity linked Lumpsum Incentive in termsof percentage of wage bill Minimum amount of First Year Premium Incomerequired to be achieved (Rs. in crores)
2005-2006 2006-2007 2007-2008 2008-2009
Threshold 14454 15848 17242 18636
1.00% 14571 15967 17363 18759
2.00% 14690 16088 17485 18883
3.00% 14808 16208 17608 19007
4.00% 14927 16330 17731 19131
5.00% 15047 16451 17854 19257
6.00% 15167 16574 17978 19383
Table 3
Productivity linked Lumpsum Incentive in termsof percentage of wage bill Minimum number of new policies required to beachieved
2005-2006 2006-2007 2007-2008 2008-2009
Threshold 31222179 33452923 35683667 37914411
1.00% 31476446 33705584 35934935 38164723
2.00% 31731728 33959299 36187299 38416176
3.00% 31988029 34214075 36440766 38668779
4.00% 32245357 34469917 36695344 38922540
5.00% 32503716 34726833 36951039 39177467
6.00% 32763114 34984829 37207860 39433567
Table 4
Productivity Linked Lumpsum Incentive in termsof percentage of wage bill Minimum amount of Rental Income required to beachieved (Rs. in crores)
2005-2006 2006-2007 2007-2008 2008-2009
Threshold 60.58 64.41 68.24 72.07
1.00% 61.07 64.9 68.72 72.55
2.00% 61.57 65.38 69.2 73.02
3.00% 62.07 65.88 69.69 73.5
4.00% 62.57 66.37 70.17 73.99
5.00% 63.07 66.86 70.66 74.47
6.00% 63.57 67:36:00 71.15 74.96
Table 5
Productivity Linked Lumpsum Incentive in termsof percentage of wage bill Maximum ratio of Early Death Claims to TotalDeath Claims
2005-2006 2006-2007 2007-2008 2008-2009
Threshold 26.00% 25.40% 24.80% 24.20%
1.00% 25.90% 25.30% 24.70% 24.10%
2.00% 25.80% 25.20% 24.60% 24.00%
3.00% 25.70% 25.10% 24.50% 23.90%
4.00% 25.60% 25.00% 24.40% 23.80%
5.00% 25.50% 24.90% 24.30% 23.70%
6.00% 25.40% 24.80% 24.20% 23.60%
Foot Note : The principal rules were published vide G.S.R. No. 357(E) dated the 11th April, 1985 and subsequently amended vide G.S.R. No. 18(E) dated the 7th January, 1986, G.S.R. No. 1076(E) dated the 11th September, 1986, G.S.R. No. 961(E) dated the 7th December, 1987, G.S.R. No. 870(E) and 873(E) both dated the 22nd August, 1988, G.S.R. No. 515(E) dated the 12th May, 1989, G.S.R. No. 509(E) dated the 24th May, 1990, G.S.R. No. 620(E) dated the 6th July, 1990, G.S.R. No. 628(E) dated the 10th July, 1990, G.S.R. No. 338(E) dated the 11th July, 1991, G.S.R. No. 697(E) dated the 25th November, 1991, G.S.R. No. 46(E) and 47(E) both dated the 4th February, 1993, G.S.R. No. 746(E) dated the 13th December, 1993, G.S.R. No. 55(E) dated the 2nd February, 1994, G.S.R. No. 595(E) dated the 30th June, 1995, G.S.R. No. 669(E) dated the 27th September, 1995, G.S.R. No. 102(E) dated the 22nd February, 1996, G.S.R. No. 261(E) dated the 22nd May, 1998, G.S.R. No. 532(E) dated the 27th August, 1998, G.S.R. No. 445(E) dated the 18th June, 1999, G.S.R. No. 611(E) dated the 30th August, 1999, G.S.R. No. 552(E) dated the 22nd June, 2000, G.S.R. No. 289(E) dated the 27th April, 2004, G.S.R. No. 561(E) dated the 5th September, 2005 and GSR No. 306(E) dated 25th April, 2007.[Substituted by Notification No. G.S.R. 30 (E), dated 14.1.2016 (w.e.f. 11.4.1985).][Substituted by Notification No. G.S.R. 30 (E), dated 14.1.2016 (w.e.f. 11.4.1985).][Substituted by Notification No. G.S.R. 30 (E), dated 14.1.2016 (w.e.f. 11.4.1985).]