Revision of Operating and Accounting Procedure in respect of incentive payment to sales force of PLI and RPLI

F. NO.18-04/2020-LI-Part (2)

Government of India

Ministry of Communications

Department of Posts

(Directorate of Postal Life Insurance)

Chanakyapuri, New Delhi-110021

Dated: 11.01.2021

To,

1. All Heads of Circles

2. Addl DG, APS

3. Director, RAKNPA/GM, CEPT

4. All Regional PMsG

5. All Directors PTCs

DRAFT OFFICE MEMORANDUM

Sub: Revision of Operating and Accounting Procedure in respect of incentive payment to sales force of PLI and RPLI- regarding.

1. As Circles are aware, sales force of PLI and RPLI consist of Direct Agents, Field Officers, Gramin Dak Sewaks and Departmental Employees. The sales force is paid incentive at a rate prescribed by Department of Posts, depending on type of policy and term of policy.

2. Presently, the incentive payment to the sales force of PLI and RPLI is first charged to the budgetary allocation of Department of Posts (Major Head 3201) and then recovered from the PLI/RPLI fund at the end of financial year in the form of ‘Recovery’ to the Department (Major Head 8016). This has resulted in mismatch between the incentive demand projected by Circles and the allotment made, which has adversely affected the growth in the business of PLI and RPLI.

3. In view of para (2) above, it has been decided that all the PAYMENTS on account of incentive to sales force of Postal Life Insurance (PLI) and Rural Post Life Insurance (RPLI) shall be debited to Major Head 8016, Sub-Major Head 06, Minor Head 101 and Sub Head 01 and 02, as under:

3.1 For PLI:

3.2 For RPLI:

3.3 The revised system of incentive payment from the Major Head 8016 shall come into force with effect from 01st February, 2021.

4. Procedure for payment of incentive to sales force of PLI and RPLI:

4.1 At the end of a month, the sales force will submit details of new premium / renewal premium deposited in respect of PLI and RPLI policies procured by her/him in the prescribed form (Form – 1 for PLI and Form – 2 for RPLI) (Annexure I and Annexure II) in triplicate (sales force copy, CPC copy and Divisional Office copy).

4.2 The details furnished by the sales force will be first verified by the CPC incharge.

4.3 After verification, the CPC in-charge will send Form 1 and Form 2 to the Divisional Office, where it will be counter-verified by the Development Officer.

4.4 After verification by CPC in-charge and the Development Officer, the sanction memo will be issued for incentive payment by Divisional Head. The sanction will be issued within 15 days of submission of the monthly incentive bill by the sales force.

4.5 Divisional Head will ensure that no double payment is made to sales force in respect of PLI/RPLI incentive payment.

4.6 Divisional Office will maintain a Register for month-wise disbursement of incentive to sales force of PLI and RPLI.

4.7 At the Regional/Circle Office level, details of the monthly incentive paid will be compiled and collated Division-wise by the O/o ADM/DDM (PLI).

4.8 Each Circle will send a monthly incentive payment statement to PLI Directorate separately for PLI and RPLI for the month of February 2021 onwards 

(Annexure III).

5. Booking of incentive payment:

5.1 The incentive will be charged to the head 8016-06-101-01-Detailed Head for PLI and 8016-06-101-02-Detailed Head for RPLI. The Sanctioning Authority i.e., the Divisional Head shall mention relevant CSI 10 Digits Code / 15 Digits CGA Code in the incentive payment Sanction Memo, as under:

5.2 The Head Post Office, which will pay the incentive on the basis of the sanction memo, shall book the payment amount into the CSI-SAP System under the CSI 10 Digits Code mentioned in the Sanction Memo.

5.3 The amount booked by the Head Post Office should be reflected into the eLekha against 15 Digit CGA Code.

5.4 The Head Post Office shall inform the payment particulars i.e. Cheque, NEFT etc. to the CPC in-charge for updation of the same into the McCamish system against the Agent Codes as Disbursement Details of the incentive, so that this amount is reflected in National Level Fund Flow Report of the McCamish under Payments – OTL (Other Than Loan) for the purpose of reconciliation.

6. Payment of Incentive for PLI/RPLI business procured upto the month of January 2021 shall be done as per the procedure prescribed in Annexure - IV. 

7. This issues with the approval of the competent authority.

(A K Sharma)

Chief Accounts Officer