Face Of Insurance

sales manger of state life

sales manger of state life
sales manger of state life

Sales manger in state life we have pleasure in confirming  your registration and hereby  appointing you as a Sales Manager (SM)  of the corporation within Pakistan under this contract with the legal status of a ‘’Supervisory Agent ‘’ which means a State Life Agent  who procures insurance business for the corporation whether wholly or in part  by supervising other State Life Agents and has a valid and subsisting contract in writing with the corporation as either a Sales Officer or a Sales Manager(as a distinct  from an ‘’Employee’’ under state life employees (service) Regulations , 1973),. The effective date of this contract shall be the effective date of your registration.

Sales manger in state life

Your appointment is subject to the following  terms and conditions;-

  1.  This appointment is subject to the provisions  of the Insurance Ordinance, 2000 and the insurance Rules 2002 as amended from time to time and other Rules and Regulations framed/ to be framed by Government and the securities and Exchange Commission of Pakistan  and orders  and directives issued by the corporation from time to time
  2. Your  area of operation  will be  ———————-but this is not assigned to you exclusively .
  3. a) this contract is issued on the basis of the statement and declaration made by you in your application for registration .in particular and without prejudice to the to the generality of the foregoing it is inter alia based on your statement that you are and shall remain a bona fide agent of the corporation’ which means you are genuinely , actively  and personally engaged in the recruitment, selection, supervisions and motivation of Sales Officer , Senior Sales Representative  and or Sales Representatives. Further , you fully meet all requirements of the insurance laws and comply with all requirements of the corporation . if in addition you are engaged doing ‘’ personal business’’ you do this yourself genuinely and actively.
  4. Sales manger in state life

EXPANATION:- the onus of proving that you are a bona fide field worker shall be on you.  in case of any doubt as to whether you are bona fide or not, the corporation’s decision shall be final and binding on you and all concerned.

Sales manger in state life

b) you will have to appear in person for such course(s)  and / test (s) and / interviews as and when required by the corporation . failure to appear for courses and/ or test and or interviews shall be construed as an admission  on your part that you are not a bona fide agent.

c) you will not permitted to delegate to any person your work as Sales Manager or to employ any person for the purpose of carrying out your business as a Sales Manager .

Sales manger in state life

EXPLANATION:- Employment by you of any person to carry out clerical duties as a typist , driver, messenger , office cleaner or similar work shall not be deemed to constitute employment for the  purpose of carrying out your business as Sales Manager.

d) in case you first started to work as Sale Manager (SM) after  30-09-2002 then an essential condition of your appointment is that you are at least matriculate and have completed ADP. Further you must, within twelve months of your appointment, successfully complete the Management Orientation Study Course (‘’MOSC’’). Failure to comply with these requirements will make your appointment liable to termination by the corporation without giving any notice.

4- you will conform and comply with such rules, orders and instruction as may be issued by the corporation from time to time.

5-Your function and duty will be recommend suitable persons for appointment in the corporation as Sales Representatives (whose legal status will be of a ‘’State Life Agent’’, an agent whose name appears on the Register OF Agents maintained by the corporation and who has a valid and subsisting  contract in writing with the corporation to act as an agent ), and to train supervise and motivate them so as to yield the best result of business production and persistency. The group of Sales Representatives working directly under your supervisions will comprise your ‘’Direct Unit’’. You will also supervise your indirect unit comprising of Sales Officers and their teams

6- you will recommend for registration and appointment, Sales Representatives to the corporation  as an essential feature of your organizational activity but no such recommendation will by itself confer upon you any right, lien, claim etc., in regard to the recommend either at the time of registration and appointment or at any time thereafter.

7- the corporation reserves to itself the right  at all times to accept, reject or modify any recommendations and also to make field dispositions in its best interests and in its sole and absolute discretion.

8- a) your quota will be produce in every calendar year , through your Entire Unit at least the minimum First  Year Premium income and second year persistency prescribe in the attached annexure, which is not integral part of this contract.

b) if this appointment is made in a month other than January , then this quota in the year of appointment will be reduce proportionately.

Provided that for the purpose of determining whether the Productivity  Bonus and/ or the Additional Productivity Bonus described in the annexure are payable the full annual FYP Quota described in the Annexure shall be taken into account, and not the proportionately reduced quota.

9- your performance will be reviewed on quarterly basis. State Life reserves the right to terminate this contract in case your performance is found unsatisfactory.
10- as full compensation for your services, the corporation agrees to pay and you agree to rereceive during the currency of the appointment , over-riding commission on the premium received by he corporation on policies sold through your Direct Unit, as prescribed in the annexure. The corporation reserves the right to amend the rates as and when necessary.

11- a) provided if you also work as sales Representative then the rate of over-riding commission in respect of business  procured by you as Sales Representative shall be further subject  to the provisions as laid down in the  annexure

b) on types of policies or riders not stated in the annexure, you shall receive commission / over-riding  commission at rates as fixed from time to time by the corporation.

12- no commission / over- riding commission will be payable on any premium advanced by the corporation under Automatic Non-forfeiture scheme or recovered by the corporation from any maturity , death, survival or any other policy benefit whatsoever. Renewal over-riding commission will however be paid if the policy holder subsequently pays to the corporation the mount of premium advanced under the automatic Non forfeiture scheme.

13-if for any reason whatsoever the corporation has to refund or re-adjust the whole or a part of premium on which commission / over- riding commission has already has been paid to you, you shall refund to the corporation the over riding commission paid thereon.

14-if a policy(ies) has been surrendered, or converted into a paid-up policy(ies) (under Automatic Non-forfeiture Scheme or other- wise ) within a period of six months before or after the date of issuance of a new policy(ies) on the same life, commission / over -riding commission on the new policy will be paid only in respect of that amount  of first year premium as exceeds the amount of first year premium of  the policy so surrendered paid up etc.

 15- the corporation shall have the right to set off against any commission / over- riding commission due to you and adjust there from the amount of any debt, obligation, misappropriation / wrong appropriation of premium or liability due or owing from you to the corporation.

16- you  are not authorized to collect premium  or any other moneys whatsoever on behalf of the corporation or bind the corporation in any way, or issue any receipt, acknowledgement or discharge or waive any requirement on behalf of the corporation. If despite your lack of authorization from the corporation, you receive any premium or other money  form a policy holder and duly fail to pay it into the corporation, then under rule 25 of the securities  & Exchange  commission (insurance) rule , 2002 read the section  405 and 409 of the Pakistan  Penal Code, you may become liable to criminal prosecution for breach  of trust. This offence is punishable with imprisonment up to 10 years and fine.

17- you shall not advertise or circularize on behalf of the corporation any material or information in any manner whatsoever , without first obtaining written approval of the corporation.

 18- you will be required to submit a statement and declaration on the prescribed form each year for renewal of your registration to act as State Life Supervisory Agent.  The statements and declaration can be filled not more than one months earlier and not later than {then months }  after its due date.

 19- your name will be struck off from the register of agents and this appointment shall terminate is    po-facto if;

  1. you become disqualified to act as a “Supervisory Agent” for any reason.
  2. You fail to apply to the corporation for renewal of registration and / or submit declaration form within [90]  days after the expiry of your registration.
  3. You become director of any life insurance company.
  4. After proper enquiry you are found guilty of;
  5. Criminal misappropriation, criminal breach of trust, cheating or forgery
  6. Fraud
  7. You are declared insolvent by court of law.

20- this appointment shall be liable to termination by the corporation without giving any notice if;

  1. You fail to complete the required quota as prescribed by the corporation.

Note-1: Amended as  {six months}

Note-2 : Amended as {180 days]

  1. Your entire units second year persistency  ratio is less than the ratio prescribed by the corporation in the annexure
  2. You  fail to pass within specified time limits any training  any training courses prescribed by the corporation.
  3. You fail to appear in course and or/ test and /or in interviews as and when called by the corporation .
  4. You are found working directly or indirectly for any other insurer transacting life insurance business or working as an employee of any employer.
  5. In the opinion of the corporation, you acted in a manner to prejudicial to its interest or to the interests of its policyholders.

21- this contract can also be terminated by either party by giving one months notice in writing  to that effect to the other party. Thereupon your name shall be struck off the register and the payment of over riding commission shall cease subject to any exception as may be prescribed by the corporation from time to time.

22- On your death before retirement(Allah Forbid) on the corporation register or on your death after you retired under para 23 below, commissions / Over- Riding  Commission that you would have drawn had you been alive may be paid to your nominee.

   For this purpose  a valid nomination made by you should on the record of the corporation. The nominee shall not  be a person other than the following relatives of yourself, namely a spouse, father, mother, brother, sister, and son or daughter, including a step or adopted child.

The nominee shall be an adult at the date of nomination.

You may change your nominee at any time by depositing a fresh nomination with the corporation.

Payment by the corporation  to a nominee on record shall not constitute a complete discharge to the corporation.

Provided that in case og death before retirement while on the corporation’s register. Payment shall be subject to the amount payable being at least Rs. 1,000 0er annum 

23- (a) you may apply for retirement if you have fulfilled all the following conditions:

  1. You have reached the age of s60, and have been a successful field Worker with the corporation for the previous 8 consecutive calendar years.

Explanation : Field worker includes Sales Manager , Sales Officer and Sales Representative.


  1. You have not reached the age of 60, but have been a successful field worker with the corporation for the previous 10 consecutive calendar years.
  2. Your renewal over riding commission in the immediate preceding calendar year in respect of third and later policy years was at least Rs 3,000
  3. You do not wish to do any more new business.

Acceptance of the application shall be at the sole and unfettered discretion of the corporation.

b) On the acceptance of your application, you will be transferred to the register of Retired Field Workers. You will continue to draw your renewal commissions/ over-riding commissions so long as the amount remains at least Rs. 1,000 per annum

provided that payment of renewal commissions shall cease if in the opinion  of the corporation you have started to work in any capacity whatsoever in Pakistan for another insurer doing life insurance business.

24- in case of any doubt or dispute whatsoever arising out of this contract or on questions of interpretation the decision of the corporation shall be final and binding.

25- the corporation shall have the right to amend terms of the contract by giving you written notice.

26- the corporation at its sole discretion may grant any relaxation  of the terms and conditions of this letter of appointment in the interest of the corporation . this may however not be taken as a right conferred on you for  claiming the benefit of relaxation of any time.

27- this contracts terminates and supersedes any contract or agreement that may have existed between you and this corporation or bema units or any life insurer whose business was nationalized under president’s order No.1 of 1972.

28- your registration to act as state life supervisory agent is only for one year and is renewable  subject to your name  being on the register of agent and your continued eligibility  to act as stat life’s supervisory Agent.

29- this contract is being issued to you in duplicate. Please sign it as a token of your acceptance to the terms and conditions of your appointment and return it for your record.

Sales manger in state life

Contents of Annexure  :

  • Annual FYP Quota,
  • Second year persistency Ratio Requirements
  • Personal Business and business through direct SRs,
  • Basic Commission  Rates  or Direct Business
  • Over- Riding Commission to SM
  • Productivity Bonus
  • Additional Productivity Business,

(8)& (9)  Additional Second Policy Year  Over Riding Commission for persistency ,

(10) Provisions applicable

(11) field worker who did not complete 2001 requirements.

Sales manger in state life



        With effect from 01-01-2002, annual First Year Premium (FYP Quotas) for a S.M  shall be first year premium “first year premium income of Rs.400,000/- per calendar year through his entire unit” The annual FYP quotas stated above shall after ever three years be automatically increased by 25%  the first such increase shall be made with effect from 1st January 2005. i.e with effect from 01-01-2005, the annual FYP quota for S.M. shall be Rs.5,00,000/-  which shall remains effective till 31.12.2007 and will again increase by 25% with effect from  01.01.2008 and so on.

Sales manger in state life

 Provided that:

                6% of First Policy Year premiums under Group Insurance Policies and 6% o0f all single premium  policies including annuities and Term Insurance shall be counted towards the annual FYP quota. In addition, where the Group Policy is one under which the rates of Commission or Over riding Commission are same in the first second and later policy years, 6% of premiums respect of second and later policy years shall also be counted towards the Annual FYP .quota.

Sales manger in state life


The Second Year Persistency Ratio Requirements shall be as follows:

                Table-1 Second Policy Year Persistency Ratio requirements

                 Years Second year persistency Ratio requirements
                 2002                            65%
                 2003                            70%
      2004 and later years                            75%

3)Personal Business and Business through direct SRs

      (a)   The Sales Manager shall be allowed personal business not exceeding 25% of his FYP production through his Entire  Unit. On this, he will earn SR basic commission and SO Basic over riding commission. In case his personal  business exceeds 25% he will get only SR Basic commission on the excess,

And will not be paid any SM or SO Over Riding Commission, Productivity Bonus or Additional Productivity  Bonus.

(b)     he can also place business through direct bona fide SRs not exceeding 50% of the total premium through his Entire Unit, including the 25% mentioned in case (a) above. The rest of the total 50% shall be acquired through other bona fide full time S.Os. on this business through direct SRs, he would be entitled to the SO basic Over-Riding Commission.

(c) In respect of (a) and (b) and provided always he does not exceed the limit of 25% and 50% respectively stipulated therein, the SMs would be entitled on the basic over- riding commission , productively bonus  and additional productivity bonus

(d) if the SM’s personal business exceeds the limits of 25% stipulated in clause (a) above / or his business through direct SR exceeds the limits of 50% stipulated in clause (b) above, he would not be entitled to SO’s and SM’s Commissions , productivity bonus and additional productivity bonus on the FYP in excess of 25%  and 50% respectively.


No productivity Bonus,  additional  productivity bonus or additional second policy year commission for persistency shall be payable on Group Insurance Policies, Term Insurance Policies, or Annuities whether immediate or Deferred. For other types of policies, no productivity bonus shall be payable if the policy is single premium   or if the premium paying term under the policy is less than 10 years.


 Suppose an existing bona fide field worker did not in 2001 complete both his former FYP quota namely Rs. 150,000 for an SM, Rs.60,000, for an SO, and Rs.10,000 for an SR, and his former second year persistency ratio  requirements of 705 suppose  further he is registered as an SM, SO, SE, or SR despite failure to met both the foregoing requirements.  Then 15% of his basic FY commission/ Over riding commission/ over- riding commission in respect of policies sold from 1 Oct 2002 to 31 Dec 2002 shall be with held commission /over riding commission shall be released to him as  at 31 Dec 2002, provided hi complete at least 40% of the annual FYP Quota from 1 August2002 to 31 Dec 2002 and achieves at least 65% second policy year persistency for the whole year2002.

zahid lar

hard working is key to success

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