Postal Life Insurance (PLI)
● Commenced – 01.02.1884
● Initially as a welfare measure for Post and Telegraph employees and then extended to the various Central State Governments
● 1894 – Extended to Female employees
● 24.03.1995- RPLI based on Malhotra Committee report on Insurance reforms for penetration to Rural areas.
● 19.09.2017 Extended clintele
● Addition, alteration and modification of POLI rules 2011 – President of India (Rule 2)
● Administration of funds (PLI and RPLI) – DG post (Rule 3)
● PLI Directorate head – CGM PLI. Apex body managing funds and business.
● Accounts maintained by Director PLI Kolkata.
● Rule 5 – Definitions
⮚ Acceptance Letter – intimation sent by accepting authority to proposer reg acceptance of proposal
⮚ Accepting Authority – officer authorised to accept proposals (PLI/RPLI)
⮚ Age Proof – Proof given by proposer to determine age on next birthday
⮚ Auto paid up – 36 or more premium paid, 3yrs completed. Same maturity date with the original sum assured if the premia are paid in single payment with compounded otherwise for the reduced sum if the premium are discontinued.
⮚ CPC – branch of HO carrying all PLI/RPLI works
⮚ Commutation – change in premium, premium term and sum assured but not the Maturity date
⮚ Conversion – affecting date of maturity, conversion of policy type.
⮚ Date of acceptance – date on which proposal is accepted
⮚ Date of commencement of risk – date on which proposal is accepted, no claim before date of acceptance.
⮚ Direct agent – engaged by Divisional Head
⮚ Director PLI – Director, PLI Kolkata – Accounts of PLI and RPLI are maintained.
⮚ Due date of premium – first day of month for which prem is payable
⮚ Free look period – means a period of 15 days from the date of delivery of the policy at the address of the insurant during which the insurant may make a request to the Department of Posts for cancellation of his policy
⮚ GPO
⮚ Head of Division
⮚ Head office (HO)
⮚ Immediate superior
⮚ Insured
⮚ Lapsing of policy – (3yrs completed) more than 12 months prem not paid
⮚ Life insurance – is a contract by which the Government, in consideration of a certain premium, either in a gross sum or periodical payments, undertakes to pay the person for whose benefit the insurance is made, a stipulated sum upon the expiry of a fixed period, or a stipulated sum upon death of the person whose life is insured
⮚ Manager or Postmaster – head of Central Processing Centre of PLI/ RPLI (GPO/ Head Office).
⮚ Marketing staff –
⮚ Paid up policy – means a policy which requires no further payment of premium in respect of it, but maturing at the same date as the original policy, either for the original sum assured, when the future premiums payable are compounded by a single payment, or for a reduced sum assured, when the premium in respect of the original policy are discontinued before the stipulated term
⮚ Pay and accounts officer drawing and disbursing officer – in whose office the account of pay and allowances of the proposer or the insured person is maintained
⮚ Period of grace – shall extend up to the last day of the calendar month for which the premium is due or the day before the last day if the last day of the month falls on Sunday or Postal holiday.
⮚ Policy – written document with terms of contract
⮚ Policy in force
⮚ Post office life insurance Fund – amount outstanding in the fund arising out of Postal Life Insurance.
⮚ Postmaster General
⮚ Post office
⮚ Premium
⮚ Proposer/proponent
⮚ Rural Post office life insurance Fund
⮚ Surrender Value” of a policy means the amount that is payable to an insured, when he foregoes the contingent benefit of his policy and surrenders it for an immediate cash payment, provided at least 36 premiums have been paid and policy has completed minimum 36 months duration.
⮚ Void – means a policy which is less than three years duration and any premium(s) that have become due, not paid either on the first day of the month for which the premium is due or within the period of grace
● Rule 6 – Eligibility
19.09.2017 – Amendments made and published on 28.04.2011
⮚ Teaching and non teaching staff of all private educational / Institutions/schools/colleges affiliated to recognised boards
⮚ Professionals – Doctors, Engineers, Chartered Accountants registered with Institute of Chartered accountants of India, Architects, Lawyers registered with Bar Council of India and Bankers
⮚ National stock Exchange and Bombay Stock Exchange listed companies.
● Minimum and maximum limit – Rs. 20,000/- and Rs 50,00,000/- (inclusive of all types of PLI and RPLI) but in multiples of 10,000/-
● Restrictions in Sum assured:
⮚ Till 40 years of Age – SA 10 times of annual income subject to max 50L
⮚ For 41 and Above – SA 7 times of annual income subject to max 50L
PLI Policy requires Standard age proof
Types of PLI Policies – 6 types
⮚ Endowment assurance (EA) (Santhosh)
⮚ Whole life assurance (WLA) (Suraksha)
⮚ Convertible Whole life assurance (CWLA) (Suvidha)
⮚ Anticipated Endowment Assurance (AEA) (Sumangal) – 01.02.1984
⮚ Joint Life Insurance (JLA) (Yugal Suraksha) – 01.08.1997
⮚ Children Policy – 20.01.2006
| Type of Policy | Benefit | Age limit | Remarks |
| Endowment Assurance | Assurance to the extent of sum assured and accrued bonus till the maturity Assignee/Nominee will get full sum assured with accrued bonus. | 19-55 Multiples of 10K | Before 5 yrs surrender no bonus After 5 yrs reduced sum assured with proportionate bonus on surrender |
| Whole life assurance | Sum assured with accrued bonus on 80 yrs or to legal heirs/nominee on death | 19-55 | Prem Pmt up to 55, 58, 60 reduced sum assured with proportionate bonus on surrender conversion to EA upto 59 yrs |
| Convertible Whole life assurance | Can be converted to EA during conversion age should not be above 55 | 19-50 | Option for conversion in 5+1 yr if not it will be Whole life assurance |
| Anticipated endowment assurance | Money back policy 15 yr term and 20 yr term | 19-40 (20 yr policy) 45 for 15 yr policy | Medical examination compulsory |
| Joint life Insurance | One spouse is eligible for PLI Risk covers both with single premium Spouse should be literate At mty elder age should not exceed 60 5yr to 20 yr term | 21-45 | Prem payable up to maturity or death of spouse |
| Children Policy | Insurance coverage to children WLA/EA policy holder Max of 2 children One policy per child | Main policy holder not above 45 yrs | 20000/- to 3lak not exceeding main policy sum assured No medical examination Age of the children 5-20 |
Types of RPLI Policies – 6 types
⮚ Endowment assurance (EA) ( Gram Santhosh)
⮚ Whole life assurance (WLA) (Gram Suraksha)
⮚ Convertible Whole life assurance (CWLA) (Gram Suvidha)
⮚ Anticipated Endowment Assurance (AEA) (Gram Sumangal) – 01.02.1984
⮚ 10 Year RPLI (Gram Priya 24.03.1995)
⮚ Children Policy (Bal Jivan bima) – 20.01.2006
RPLI is the same except 10 Year RPLI Gram Priya
10 Year RPLI (Gram Priya 24.03.1995)
Short term money back scheme for Rural populace only.
Insurant is given life cover to the extent of SA for 10 yrs.
Survival benefits are paid 4 yrs – 20% : 7 yrs – 20%; and after 10 years – 60% with accrued bonus.
Min & Max Age – 20-45 years.
Min & Max SA – Rs. 10000 & Rs. 10 lakhs
No interest is charged upto one year as arrears of premium in case of natural calamities like flood, drought, earthquake, cyclone etc.,
Rebate:
| Advance Prem | PLI | RPLI | Yugal Suraksha |
| 3 months | Nil | 0.5 of the total premium | 3 x monthly premium. 2% of one month prem |
| 6 months | 1% of the total prem amount | 1% of the total prem amount | 6 x monthly premium. 10% of one month prem |
| 12 months | 2% of the total | 2% of the total | 12 x monthly premium. 50% of one month prem |
Medical examination compulsory:-
For EA policies maturing at the age of 35.
For AEA and Yugal Suraksha policies.
PLI- When age exceeds 40 and SA exceeds Rs. 5 Lakh
PLI policy upto Rs. 2,00,000/- (Rs. Two lakh) of sum assured will be a non -medical policy irrespective of age limit.
RPLI- When age exceeds 35 and SA exceeds Rs. 1 Lakh*
*Max Sum assured for Non medical RPLI policy with non standard age proof – Rs.25000/-
The maximum limit of sum assured with non-standard proof of age shall be ₹ one lac. The 5% extra premium will be loaded and policies with sum assured of more than ₹ 25,000/- should be subject to usual medical examination. Also, any one taking policies worth or more than ₹ 25,000/- (sum assured) with non- standard proof of age shall not be beyond 45 years of age.
Non Medical scheme Death claim
| Death of the insurant occurred before 1 year | Restricted to 35% of the SA + Bonus |
| If within 1 yr to 2 years | Restricted to 60% of the SA + Bonus |
| If within 2 yrs to 3 years | Restricted to 90% of the SA + Bonus |
| If death occurred after 3 years | 100% SA + Bonus |
Medical Scheme:
The policies are accepted under medical scheme after the medical examiner’s report. If the proposal is not accepted by the accepting authority then the initial premium is returned after deducting the medical examination fee.
| For SA up to Rs 5 Lakhs | Asst civil surgeon or above . MO equivalent to Asst civil surgeon or above. Retired MO- Grade II |
| For 5-10 lakhs | Dy. civil surgeon or above . MO equivalent to Dy. civil surgeon or above. MO with 10 years of experience. Retired MO- Grade I |
| For exceeding 10 lakhs | Civil surgeon. Chief MO Gr I specialist surgeon with 15 years of experience. Retired civil surgeon- CMO Gr I and specialist Gr II. |
Woman medical officer – woman proposer- consent needed.
The Medical examiners of all grades are appointed by the divisional heads.
· The RMP ( Allopathic) may be appointed for conducting medical examination up to Rs. 5
Lakhs by the Divisional heads.
· The Medical examination can be done at either the work place or residence.
· The validity of the Medical certificate will be 60 days and If it is not accepted within that
period, second medical examination is to be done.
Medical Examination charges:
| For SA up to Rs. 10 lakhs | Rs. 50 per proponent |
| For 10 – 20 lakhs | Rs. 70 per proponent |
| For exceeding 20 lakhs | Rs. 120 per proponent |
| Revival cases where sum assured is Rs. 20 lakhs and the age of the insurant is 55 years and above | Rs. 150 for each opinion |
· If a fact on the serious illness of the proposer / death of the family member occurs before the acceptance of the policy a fresh medical opinion may be ordered at the cost of the department. The proposer is responsible to intimate such facts to the accepting authority in time.
· For policy documents up to Rs.25000/- in RPLI facsimile signatures shall be affixed.
· Duplicate PRB fee – Rs. 20 /-
Assignment:
On the reverse of the policy itself or by a separate deed
Must be dated and signed by the assignor in the presence of a witness.
| Nomination | Assignment |
| Nomination by the insurant | For valuable consideration or by way of gift. |
| Can be done before issue of the policy | Can be done after the issue of the policy |
| Policy holder retains the full control | Assignee hold the full control |
| Nomination cancelled and new nomination can be done | It cannot be cancelled by the assignor |
| Rule 39 of Ins Act 1938 | Rule 38 of Ins Act 1938 |
| For married men nomination is valid under section 6 of married women’s property act 1874 | A policy may be assigned to the president of India for the purpose of paying estate duty payable under 34 of Estate duty Act 1953. |
| Nominee is only to collect the money | Assignee is to receive the money |
| If the nominee dies then the amount will be paid to the legal heirs of the insurant | If the assignee dies then the amount will be paid to the legal heirs of the assignee |
Commutation– Alteration in the contract without affecting the date of maturity. Alteration in the amount of premium, Sum assured. If the premium and SA is reduced then termed as Reduction. Charge is free.
Reduction of policy term or premium paying term will not be allowed if the maturity date falls within a year or before on the date of alteration
Conversion – Alteration affecting the date of maturity. Ante dating /Post dating the date of maturity. Whole life to EA like change in class of policy.
If the premium term is extended the good health certificate is required. The increase in SA is allowed if the age is less than 45.
Conversion is free for first time. Second or subsequent conversion fee is Rs.20.
Payment of policies.
· Maturity, survival benefit, death claim.
· If the payment is delayed due to administrative reasons then ex-gratia payment of interest @ 8% per annum on the unsettled amount to be paid.
Time limit for settlement of claims.
| For claim not involves investigationMore than 3 years. | 4 to 30 days |
| Less than 3 years. Involves investigation un natural death | 47 days to 90 days |
| Claim enquiry | 15 days + 6days for report . Total 21 days |
| Approval | 3 days if no enquiry is required 15 days if inquiry is required. |
For waival of succession certificate for the death claim cases where no nomination is available by the CPMG = 3 Lakhs. Above 3 lakhs – DG
· Surrender of policy is admissible after 36 months elapsed and 36 months premium paid. Proportionate bonus is allowed only after 5 years.
If a policy is lapsed within 36 months and settlement of death claims.
Remission period.
| If death occurs within 6 months | Nil. i.e all the premiums must be paid without any pending |
| 6 months to 12 months | 30 days ni |
| 12 months to 24 months | 60 days |
| 24 months to 36 months | 90 days |
The PMG has discretionary powers to allow ex-gratia payment of value of the policy or ex-gratia refund of premium amount with or without interest if he is satisfied that no deliberate infringement of rules.
Case I
· For less than 3 years policies – 6 defaults including current month.
Premium paid with default fee of 12 % pa. can be reinstated by submitting good health declaration by the insurant.
Case II
· For more than 3 years policies – 12 defaults including current month.
· Premium paid with default fee of 12 % pa. can be reinstated by submitting good health declaration by the insurant.
· If more than 6 defaults in case i and 12 defaults in case ii, then revival should be done at the CPC, HO. Revival must be accompanied with Good health declaration from the medical examiner.
· Revival can be allowed any number of times.
If a policy is lapsed beyond 36 months and settlement of death claims.
· If the policy is lapsed after 36 months, and within 12 months of default period if no death claim or paid up policy application is not received the policy will be kept alive if the paid up value is more than 10000/-.
· A policy to be revived provided that the said policy has not attained the date of maturity and a period of consecutive 5(five) years has not passed from the date of first unpaid premium and the life assured is insurable at the time of revival.
· Revival is allowed on production of certificate from an authorized medical attendant in the prescribed proforma certifying that the life assured is insurable having regard to the insurants health and habits and of evidence to show that there has been no adverse change in his/her personal or family history or his/her occupation.
· Revival can be paid in single payment or in 12 installments.
NOTE: – The revival of a policy under Rule 58 shall be allowed on any number of occasions during the entire term of the policy including the relaxation given under Rules 56 (3) and 57(3) for re-instatement. However, a period of consecutive 5 (five) years should not have passed from the date of first unpaid premium against such lapsed policy.
SURRENDER:
| After 3 years – up to 5 years | 40% of Pr paid |
| After 5 years – up to 10 years | 75% of Pr paid + Bonus |
| After 10 years | 100% of Pr paid + Bonus |
Loan:
| EA and JL | WL & CWL | |
| After 3 years – up to 5 years | After 4 years – up to 7 years | 60% of Surrender value |
| Exceeding 5 years – up to 10 years | Exceeding 7 years – up to 12 years | 80% of Surrender value |
| Exceeding 10 years | Exceeding 12 years | 100% of Surrender value |
For giving loan a minimum surrender value is Rs.1000/- is required.
· Amount of loan sanctioned in multiplies of Rs.100/-.
· Second or subsequent loan can be granted until full repayment of previous loan.
· The loan may be repaid in installments of amount not less than 100 Rs. Interest will be charged @ 10% p.a. compounding half yearly.
· If loan is not paid 1st reminder will be sent when the loan capitalization ( +interst) reaches 90% of SV , and 2nd reminder on reaching 95 % SV, and 3rd reminder on 100% of SV.
· If no repayment is done within 30 days from the 3rd reminder than the policy shall forcibily surrendered and any amount remaining will be paid to the insurant.
Revised Limits of first & subsequent loan against PLI & RPLI policies:
| Sl No | Designation | Existing Limit | Proposed revised limit |
| 1 | Postmaster of CPC of HOs / GPOs | No Limit | No Limit |
However, the forced/auto surrender shall not be applied in following cases:
(I) Where policy becomes a claim.
(ii) Maturity date of the policy is within the next one year.
The outstanding balance of the loan with interest will be recovered from the value of the policy at the time of settlement of the claim. Interest on a loan will accrue up to the last date of the month in which the policy becomes a claim either by maturity or by surrender, provided that interest for at least six months had been charged on the loan.”
· Suicide cases allowed for payment after 12 months.
· If the policy holder is murdered by any of the legal representative / nominee the amount shall not be paid to the murderer even if is acquitted by the court of law. In this case the policy money shall be payable to other eligible legal heirs of the policy.
Miscelleaneous points
1. A. As per Directorate Order 25-5/2007-LI(Part) dtd. 08-02-2019, Advertisement about the Loss of a PLI/RPLI Policy document is dispensed with irrespective of Sum Assured.
B. Fees for issue of Duplicate Policy is Rs. 100
C. Issue of Duplicate Policy Document up to Rs. 10 Lakhs will be approved at CPC Level and any Policy beyond this Amount will be approved by Head of the Division.
D. Fees for Duplicate Premium Receipt Book will be Rs. 20 as per Directorate Order 29-13/2019-LI dtd. 08-07-2019.
2. As per 25-4/CIF/12-LI dtd. 02-07-2019, No Witness will be required at the time of payment towards Maturity and Other Claims.
HV Policies exceeding 20 Lakhs.
| PLI | 202-2021 | RPLI | 2020-2021 |
| WLA, CWL | 76 / 1000 SA | WLA , CWL | 60 / 1000 SA |
| EA | 52 / 1000 SA | EA | 48 / 1000 SA |
| Joint Life | 52 / 1000 SA | ||
| Children | 52 / 1000 SA | Children | 48 / 1000 SA |
| AEA | 48 / 1000 SA | AEA | 45 / 1000 SA |
| Terminal Bonus | Rs. 20/ 10000 SA subject to a maximum of Rs. 1000** WL/EA – Policy term should be 20 yrs or more | Terminal Bonus | Rs. 20/ 10000 SA subject to a maximum of Rs. 1000** WL/EA – Policy term should be 20 yrs or more |
New approval limit for new policies, Revival, surrender, Forced surrender, Maturity, Death claims, survival – w.e.f. 01.04.2020.
| Up to 20 lakhs (Single or aggregate sum assured) | Postmaster, Sr. PM, Dy CPM, AD of HO headed by Director |
| Above 20 lakhs | Divisional Head , Chief Postmaster, Dy Director of HO headed by Director |
| Early death claim cases irrespective of the sum assured (death within 3 years of acceptance of policy) | DPS – Region- HQ Director , GPO |
APPEAL IN DEATH CLAIM CASES.
1. Appeal can be made by the claimant against the rejection of the death claim cases.
2. Should be submitted within 90 days from the date of rejection of the claim. If any delay occurs that may be condoned by the appellate authority.
3. The appeal should be decided by the appellate authority within 45 days from the date of receipt of appeal.
| Approving Authority | Appellate authority |
| PM / Sr. PM | Divisional Head |
| Dy CPM | Chief Postmaster |
| AD / Dy Director of HO headed by Director | Director GPO |
| Head of the Division / Chief Postmaster | DPS (Region/HQ) |
| DPS(Region) | PMG |
| DPS(HQ) | CPMG |
New Promotional and Incentive structure w.e.f 01.07.2020. (Dte circular 19.06.20)
Development officer – Age 25 to 45 Term 3 years – Extended by 2 years.
Field officer – Age should not exceeding 65 years. Retired
Government officials.
Security deposit – Rs.5000 .
Provisional license is issued valid for 3 yrs. He has to clear the licentiate exam. Within 3 yrs. Rs.50 /- for provisional license.
Permanent license is for 5 years. Rs. 100/- for Permanent license.
Rs. 50 for duplicate / renewal of permanent license.
FO can be retained upto 75 years by the divisional Head.
Further extension can also be given.
Direct Agent -Age 18-50 Educational qualification – SSLC
Passed. Security deposit – Rs.5000 Provisional
license is issued valid for 3 yrs. He has to clear the
licentiate exam within 3 yrs. Permanent license is
for 5 years. Rs.50 /-for provisional license. Rs.
100/- for Permanent license. DA can be retained
upto 65 years by the divisional Head. Further
extension can also be given.
Procurement incentive for PLI – Except AEA
| Up to 15 yrs of policies | 4% of the first year premium income |
| More than 15 years but less than 25 years | 10% of the first year premium income |
| More than 25 years | 20% of the first year premium income |
Procurement incentive for PLI – AEA
| For 15 years policies | 5% of the first year premium income |
| For 20 years policies | 7% of the first year premium income |
Note : 1) Renewal incentive will be paid @ 1% to all sales forces for PLI.
2) DO will be paid with 1% of total new PLI business premium procured by
the Direct Agents attached with the Development officer.
3) No renewal incentive will be paid to the Development officer.
Incentive structure for RPLI
| Procurement | For all types of RPLI policies 10% of the first year premium income |
| Renewal Incentive | For all types of RPLI policies 2.5% of the renewal year premium income |
Note : 1) DO will be paid with 1% of total new RPLI business premium procured
by the Direct Agents attached with the Development officer.
2) No renewal incentive will be paid to the Development officer.
CITIZEN CHARTER
| Change in address | 5 days |
| Loan, assignment, issue of DPB, change of nomination | 10 days |
| Issue of acceptance letter , Issue of policy bond, Revival of policy, Conversion of policy, Maturity claim settlement/Paid up value of policy/ Survival benefit payment | 15 days |
| Death claim without investigation | 30 days |
| Death claim with investigation | 90 days |
