Letter to CPMG on non payment of PLI/RPLI commission to IPs/ASPs

A letter was addressed to CPMG regarding non payment of PLI/RPLI commission to IPs/ASPs. The text of the letter is reproduced hereunder for the information of the members.

To

The Chief Postmaster General,

Andhra Pradesh Circle, Hyderabad – 500 001.

Lr No. AIAIPASP/Misc/10/2012                                           Dated : 24/07/2012

Madam,

          Sub:- Non payment of commission for procuring PLI business by IPs/ASPs 

as Marketing Officers (PLI) & non payment of commission for RPLI on

business procured by rural BPMs/SPMs – reg.

*  *  *

1.       This relates to non payment of commission for procuring PLI business by IPs & ASPs as Marketing Officers (PLI) and non payment of commission for RPLI on business procured by rural BPMs/SPMs. The circle branch of the association brings it to the notice of the Chief Postmaster General that the IPs & ASPs are very actively involved in procuring PLI business every year and most of them even have surpassed the targets allotted to them in PLI business.  This active involvement of IPs/ASPs also helped in increase of revenue for the Department also.

2.       But, it is very disappointing and disheartening to bring it to the notice of the Chief Postmaster General that the IPs/ASPs actively involved in procuring PLI business are not being paid their due commission for business procured and many hurdles and many objections are raised for release of commission.

3.       There was a system of payment of 1^st instalment of  90% of commission due immediately after the policy was accepted and the remaining 10% of commission due was released as 2^nd instalment only after ascertaining that 6 minimum required credits are available in a policy. But, now this is not being followed and 100% of commission is paid only after 6 months credits are available in a policy which is quite disappointing.

4.       At this juncture, it is to submit that PLI operations are fully computerized now. Even after computerization, the Marketing Officers (PLI) are being asked to prefer a commission bill enclosing a copy of advance premium receipt issued to the insurant which is not required as the commission is being paid only for the accepted policies and the business procured by a Marketing Officer (PLI) is clearly available policy wise & agent wise in the PLI web site. The circle branch of the association finds no reason to ask the Marketing Officers (PLI) to prefer their commission bill and instead the commission can straightaway be released without waiting for commission bill from any Marketing Officer (PLI).

5.       Further, the Marketing Officers (PLI) are also being asked to certify 6 credits in a policy which is quite embarrassing as PLI premium can be paid at any Post Office in the circle. As PLI is available only for salaried employees of Central/State Govt, PSUs and autonomous bodies, for whom transfers are inevitable, insurants pay their premium at different Post Offices of the circle. The Marketing Officer (PLI) is not in a position to obtain 6 credits from such insurants who were transferred from the place where policy was procured by the Marketing Officer (PLI).

6.       In this connection, the circle association brings it to the notice of the Chief Postmaster General that many IPs/ASPs got demoralized & demotivated for non payment of their due commission earned by them after a lot of struggle for business procurement and stopped procurement of PLI business which ultimately brings down the PLI business of the circle.

7.      The circle branch of the association requests the Chief Postmaster General kindly to intervene in the matter and arrange to get the commission released for procurement of PLI business by the Marketing Officers (PLI) @ 90% immediately after the policy is accepted and remaining 10% after ensuring 6 credits are available in the policy. The Chief Postmaster General is also requested to arrange to release the commission without waiting for commission bill claims from Marketing Officers (PLI).

8.       The circle branch of the association also brings it to the notice of the Chief Postmaster General that commission to IPs/ASPs for RPLI business procured in the Sub Division is not paid in many Divisions on the ground that the commission is stopped after new system of payment of RPLI commission was introduced from 01/09/2009. The association is of the information that even after introduction of new system of commission structure, the Sub Divisional heads also do have a share of commission for them for RPLI premium payment. The circle branch of the association requests the Chief Postmaster General to arrange to provide clarity on the issue and arrange to issue instructions to all concerned regarding payment of commission to IPs/ASPs on RPLI premium paid in their respective Sub Divisions.

9.       Kindly acknowledge the receipt of the letter and a reply on these issues is requested.

                                                                                              Yours faithfully,

                                                                                             CIRCLE SECRETARY