▪ Introduction
Postal Life Insurance (PLI) was introduced on 1st February 1884 with the express approval
of the Secretary of State (for India) to Her Majesty, the Queen Empress of India. It was
essentially a scheme of State Insurance mooted by the then Director General of Post Offices,
Mr. F.R. Hogg in 1881 as a welfare scheme for the benefit of Postal employees and later
extended to the employees of Telegraph department in 1888. In 1894, PLI extended insurance
cover to female employees of P & T Department at a time when no other insurance company
covered female lives. It is the oldest Life insurer in this country.
In the beginning, the upper limit of life insurance was only ₹ 4000/- which has now increased
to ₹ 50 lacs (Rupees Fifty Lacs) and it will be effective as and when notified through a Gazette
notification for all schemes combined - Endowment Assurance and Whole Life Assurance.
Over the years, PLI has grown substantially from a few hundred policies in 1884 to more than
46 Lacs policies as on 31.03.2017. It now covers employees of Central and State
Governments, Central and State Public Sector Undertakings, Universities, Government aided
Educational institutions, Nationalized Banks, Local bodies, autonomous bodies, joint ventures
having a minimum of 10% Govt./PSU stake, credit co-operative societies etc. PLI also extends
the facility of insurance to the officers and staff of the Defence services and Para-Military
forces. Apart from single insurance policies, Postal Life Insurance also manages a Group
Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the
Department of Posts.
PLI is an exempted insurer under Section 118 (c) of the Insurance Act of 1938. It is also
exempted under Section 44 (d) of LIC Act, 1956.
▪ Insurance Plans in PLI
PLI offers the following six types of policies:
• Whole Life Assurance (Suraksha)
• Endowment Assurance (Santosh)
• Convertible Whole Life Assurance (Suvidha)
• Anticipated Endowment Assurance (Sumangal)
• Joint Life Assurance (Yugal Suraksha)
• Children Policy (Bal Jeevan Bima)
Salient Features of PLI policies
1. Whole Life Assurance (Suraksha)
This is a scheme where the assured amount with accrued bonus is payable to the insured
either on attaining the age of 80 years, or to his/her legal representatives or assignees on
death of the insured, whichever occurs earlier, provided the policy is in force on the date of
claim.
• Minimum & Maximum age at entry: 19-55 years
• Minimum Sum Assured ₹ 20,000; Maximum ₹ 50 lac
• Loan facility after 4 years
• Surrender after 3 years
• Last declared Bonus- ₹ 85/- per ₹ 1000 sum assured per year
2. Endowment Assurance (Santosh)
Under this scheme the proponent is given an assurance to the extent of the sum assured and
accrued bonus till he/she attains the pre- determined age of maturity i.e 35,40,45,50,55,58 &
60 years of age.
In case of death of insurant, assignee, nominee or legal heir is paid full amount of sum assured
with accrued bonus
• Minimum & maximum age at entry: 19-55 years
• Minimum sum assured ₹ 20,000; Maximum ₹ 50 lac
• Loan facility after 3 years
• Surrender after 3 years
• Last declared Bonus – ₹ 58/- per ₹ 1000 sum assured per year
[Link] Whole Life Assurance (Suvidha)
This is a Whole Life Assurance Policy with the added feature of an option to convert to
Endowment Assurance Policy at the end of five years of taking policy.
• Assurance to the extent of sum assured with accrued bonus till attainment of maturity
age
• In case of death, assignee, nominee or legal heir paid full amount of sum assured with
accrued bonus
• Minimum age & Maximum age at entry: 19-50 years
• Minimum sum assured ₹ 20,000; Maximum ₹ 50 lac
• Loan facility after 4 years
• Surrender after 3 years
• Last declared Bonus- ₹ 85/- per ₹ 1000 per year (for WLA policy if not converted to
Endowment Assurance)
4. Anticipated Endowment Assurance (Sumangal)
It is a Money Back Policy with maximum sum assured of ₹ 50 lacs, best suited to those who
need periodical returns. Survival benefits are paid to the insurant periodically. Such payments
will not be taken into consideration in the event of unexpected death of the insurant. In such
cases, full sum assured with accrued bonus is payable to the assignee, nominee of legal heir.
• Policy term: 15 years and 20 years
• Minimum age 19 years; maximum age at entry 40 years for 20 years’ term policy & 45
years for 15 years’ term policy
• Survival benefits paid periodically as under: -
• 15 years Policy- 20% each on completion of 6 years, 9 years & 12 years and 40% with
accrued bonus on maturity
• 20 years Policy- 20% each on completion of 8 years, 12 years & 16 years and 40% with
accrued bonus on maturity
• Last declared bonus -₹ 53/- per ₹ 1000 sum assured per year
5. Joint Life Assurance (Yugal Suraksha)
It is a Joint Life Endowment Assurance in which one of the spouses should be eligible for PLI
policies.
• Life cover to both spouses to the extent of sum assured with accrued bonus.
• Minimum sum assured ₹ 20,000; Maximum ₹ 50 lac
• Minimum age & Maximum age at entry of spouses: 21-45 years
• Maximum Age of the elder policy holder should not be more than 45 years & the couple
should be between 21 years to 45 years.
• Loan facility after 3 years
• Loan after 3 years
• Death benefits are paid to either of the survivors in the event of death of spouse or main
policy holder
• Last declared Bonus- ₹ 58/- per ₹ 1000 sum assured per year
6. Children Policy (Bal Jeevan Bima)
The salient features of this scheme are as under:
• The scheme provides life insurance cover to children of policy holders.
• Maximum two children of policy holder (parent) are eligible
• Children between 5- 20 years of age are eligible
• Maximum sum assured ₹ 3 lac or equal to the sum assured of the parent, whichever is
less
• Policy holder(parent) should not be over 45 years of age.
• No premium to be paid on the Children Policy, on the death of policy holder
(parent). Full sum assured and bonus accrued shall be paid on completion of term
• Policy holder (parent) shall be responsible for payment of Children policy
• Attract the rate of bonus applicable for Endowment policy (Santosh) i.e. last bonus rate
is ₹ 58/- per ₹ 1000 sum assured per year.
▪ Benefits
PLI is the only insurer in the Indian Life Insurance market today which gives the higher return
(bonus) with the low premium charged for any product in the market.
A PLI/RPLI policy holder may also get following facilities: -
• Change of nomination.
• The insurant can take loan by pledging his/her policy to Heads of the Circle on behalf
of President of India, provided the policy has completed 3 years in case of Endowment
Assurance and 4 years in case of Whole Life Assurance. The facility of assignment is
also available.
• Assignment of Policy to any Financial Institution for taking loan.
• Revival of his/her lapsed policy. Policy lapses after 6 unpaid premia if it remained in
force for less than 3 years and after 12 unpaid premia if it remained in force for more
than 3 years.
• Issue of Duplicate Policy Bond in case the original Policy Bond is lost, burnt or
torn/mutilated.
• Conversion from Whole Life Assurance -Gram Suraksha to Endowment -Gram Santosh
Assurance and from Endowment Assurance -Gram Santosh to other Endowment
Assurance-Gram Santosh with reduced sum assured or reduced term as per rules.
*****
▪ Introduction
Rural Postal Life Insurance (RPLI) came into being as a sequel to the recommendations of
the Official Committee for Reforms in the Insurance Sector (Malhotra Committee). The
Committee had observed in 1993 that only 22% of the insurable population in this country had
been insured; life insurance funds accounted for only 10% of the gross household
savings. The Committee had observed:
“The Committee understands that Rural Branch Postmasters who enjoy a position of trust in
the community have the capacity to canvass life insurance business within their respective
areas…..”
The Government accepted the recommendations of Malhotra Committee and allowed
Postal Life Insurance to extend its coverage to the rural areas to transact life insurance
business with effect from 24.3.1995, mainly because of the vast network of Post Offices in
the rural areas and low cost of operations. The prime objective of the scheme is to provide
insurance cover to the rural public in general and to benefit weaker sections and women
workers of rural areas in particular and also to spread insurance awareness among the rural
population. As on 31.03.2017, we have more than 146 Lacs policies.
▪ Eligibility
The scheme shall cover all persons , male or female , who permanently reside in rural areas
and are ordinarily residents in India to the exclusion of foreigners and non resident Indians
provided they have attained majority.
▪ Insurance Plans in RPLI
Rural Postal Life Insurance (RPLI) scheme was introduced in 1995 for the benefit of rural
populace to extend insurance cover to people living in rural areas with special emphasis on
weaker sections and women workers as a result of the recommendation of the Official
Committee for Reforms in the Insurance Sector (Malhotra Committee).
RPLI offers the following six types of policies:
• Whole Life Assurance (Gram Suraksha)
• Endowment Assurance (Gram Santosh)
• Convertible Whole Life Assurance (Gram Suvidha)
• Anticipated Endowment Assurance (Gram Sumangal)
• 10 Year RPLI (Gram Priya)
• Children Policy (Bal Jeevan Bima)
Salient Features of Rural PLI policies
1. Whole Life Assurance (Gram Suraksha)
This is a scheme where the assured amount with accrued bonus is payable to the insured
either on attaining the age of 80 years, or to his/her legal representatives or assignees on
death of the insured, whichever occurs earlier, provided the policy is in force on the date of
claim.
• Minimum & Maximum age at entry: 19-55 years
• Minimum Sum Assured ₹ 10,000; Maximum ₹ 10 lac
• Loan facility after 4 years
• Surrender after 3 years
• Last declared Bonus- ₹ 65/- per ₹ 1000 sum assured per year
2. Endowment Assurance (Gram Santosh)
Under this scheme the proponent is given an assurance to the extent of the sum assured and
accrued bonus till he/she attains the pre- determined age of maturity i.e 35,40,45,50,55,58 &
60 years of age.
• In case of death of insurant, assignee, nominee or legal heir is paid full amount of sum
assured with accrued bonus
• Minimum & maximum age at entry: 19-55 years
• Minimum sum assured ₹ 10,000; Maximum ₹ 10 lac
• Loan facility after 3 years
• Surrender after 3 years
• Last declared Bonus- ₹ 50/- per ₹ 1000 sum assured per year
3. Convertible Whole Life Assurance (Gram Suvidha)
A Whole Life Assurance Policy with the added feature of an option to convert to Endowment
Assurance Policy at the end of five years of taking policy.
• Assurance to the extent of sum assured with accrued bonus till attainment of maturity
age
• In case of death, assignee, nominee or legal heir paid full amount of sum assured with
accrued bonus
• Minimum age & Maximum age at entry: 19-45 years
• Minimum sum assured ₹ 10,000; Maximum ₹ 10 lac
• Loan facility after 4 years
• Surrender after 3 years
• Last declared Bonus- ₹ 65/- per ₹ 1000 per year (for WLA policy if not converted to
Endowment Assurance)
4. Anticipated Endowment Assurance (Gram Sumangal)
It is a Money Back Policy with maximum sum assured of ₹ 10 lacs, best suited to those who
need periodical returns. Survival benefits are paid to the insurant periodically. Such payments
will not be taken into consideration in the event of unexpected death of the insurant. In such
cases, full sum assured with accrued bonus is payable to the assignee, nominee of legal heir.
• Policy term: 15 years and 20 years
• Minimum age 19 years; maximum age at entry 40 years for 20 years’ term policy & 45
years for 15 years’ term policy
• Survival benefits paid periodically as under: -
• 15 years Policy- 20% each on completion of 6 years, 9 years & 12 years and 40%
with accrued bonus on maturity
• 20 years Policy- 20% each on completion of 8 years, 12 years & 16 years and 40%
with accrued bonus on maturity
• Last declared Bonus- ₹ 47/- per ₹ 1000 sum assured per year
5. 10 Years Rural PLI (Gram Priya)
It is a short term money back scheme for Rural populace only
• Insurant is given life cover to the extent of Sum Assured for 10 years.
• Survival benefits are paid after 4 years- 20% after 7 years- 20%, and after 10 years –
60% with accrued bonus
• Minimum & maximum age at entry 20 – 45 years
• Minimum sum assured ₹ 10,000, maximum 10 lacs
• No interest is charged upto one year as arrears of premia in case of natural
calamities like flood, drought, earthquake, cyclone etc.
• Last declared bonus ₹ 47/- per ₹ 1000/- sum assured per year.
6. Children Policy (Bal Jeevan Bima)
The salient features of this scheme are as under:
• The scheme provides life insurance cover to children of policy holders.
• Maximum two children of policy holder (parent) are eligible
• Children between 5- 20 years of age are eligible
• Maximum sum assured ₹ 1 lac or equal to the sum assured of the parent, whichever
is less
• Policy holder(parent) should not be over 45 years of age.
• No premium to be paid on the Children Policy, on the death of policy holder (parent).
Full sum assured and bonus accrued shall be paid on completion of term
• No medical examination of child necessary. However, child should be healthy and risk
shall start from day of acceptance of proposal
• Attract the rate of bonus applicable for Endowment policy (Gram Santosh) i.e. last
bonus rate is ₹ 50/- per ₹ 1000 sum assured per year.
*****
Jansuraksha Scheme
Pradhan Mantri Suraksha Bima Yojna (PMSBY)
Details of the scheme:
The scheme will be a one-year cover, renewable from year to year, Accident Insurance
Scheme offering accidental death and disability cover for death or disability on account of
an accident. The scheme would be offered / administered through Public Sector General
Insurance Companies (PSGICS) and other General Insurance companies willing to offer the
product on similar terms with necessary approvals and tie-up with Banks for this purpose.
Participating banks will be free to engage any such insurance company for implementing
the scheme for their subscribers.
Scope of coverage:
All savings bank account holders in the age 18 to 70 years in participating banks will be
entitled to join. In case of multiple saving bank accounts held by an individual in one or
different banks, the person would be eligible to join the scheme through one savings bank
account only. Aadhar would be the primary KYC for the bank account.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Details of the scheme:
The scheme will be a one year cover, renewable from year to year, Insurance Scheme
offering life insurance cover for death due to any reason, The scheme would be offered /
administered through LIC and other Life Insurance companies willing to offer the product
on similar terms with necessary approvals and tie ups with Banks for this purpose.
Participating banks will be free to engage any such life insurance company for
implementing the scheme for their subscribers.
Scope of coverage:
All savings bank account holders in the age 18 to 50 years in participating barnks will be
entitled to join. In case of multiple saving bank accounts held by an individual in one or
different banks, the person would be eligible to join the scheme through one savings bank
account only. Aadhar would be the primary KYC for the bank account.
Atal Pension Yojna (APY)
Any individual or existing Swavalamban Yojana subscriber who has completed 18 Years of
age and is below 40 Years of Age on the day of applying can open an APY account in any
authorized CBS Post Office. The contribution for APY will be debited every month (if opted
for monthly), the first month of a quarter (if opted for quarterly), or the first month of the
Half Year (if opted for Half Yearly) from the subscriber's Savings Account based on the
Standing Instruction provided by the subscriber in the APY Subscriber Registration Form.