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 Benefit Age limit Remarks

Policy
Endowment Assurance to the extent 19-55 Before 5 yrs surrender no
Assurance of sum assured and bonus
accrued bonus till the
maturity Multiples
of 10K After 5 yrs reduced sum
assured with
Assignee/Nominee will proportionate bonus on
get full sum assured surrender
with accrued bonus.

Whole life Sum assured with 19-55 Prem Pmt up to 55, 58, 60
assurance accrued bonus on 80 yrs
or to legal
heirs/nominee on death

reduced sum assured with

proportionate bonus on
surrender

conversion to EA upto 59
yrs

Convertible Can be converted to EA 19-50 Option for conversion in

Whole life during conversion age 5+1 yr if not it will be
assurance should not be above 55 Whole life assurance

Anticipated Money back policy 19-40 (20 Medical examination

endowment yr policy) compulsory
assurance 45 for 15 yr
15 yr term and 20 yr policy
term
Joint life One spouse is eligible 21-45 Prem payable up to
Insurance for PLI maturity or death of
spouse

Risk covers both with

single premium

Spouse should be
literate

At mty elder age should

not exceed 60

5yr to 20 yr term

Children Insurance coverage to Main 20000/- to 3lak not

Policy children policy exceeding main policy
holder not sum assured
above 45
WLA/EA policy holder yrs
No medical examination

Max of 2 children
Age of the children 5-20

One policy per child

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 3 x monthly

premium premium. 2% of
one month prem

6 months 1% of the total 1% of the total 6 x monthly

prem amount prem amount 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 Restricted to 35% of the SA + Bonus

year

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. Rs. 150 for each opinion
20 lakhs and the age of the insurant is
55 years and above

· 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 It cannot be cancelled by the assignor

nomination can be done

Rule 39 of Ins Act 1938 Rule 38 of Ins Act 1938

For married men nomination is valid A policy may be assigned to the

under section 6 of married women’s president of India for the purpose of
property act 1874 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 If the assignee dies then the amount
will be paid to the legal heirs of the will be paid to the legal heirs of the
insurant 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 4 to 30 days

investigation

More than 3 years.

 Less than 3 years. Involves 47 days to 90 days
investigation un natural death

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 After 4 years - up 60% of Surrender

to 5 years to 7 years value

Exceeding 5 years Exceeding 7 years 80% of Surrender

- up to 10 years - up to 12 years value

Exceeding 10 Exceeding 12 100% of

years years 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 Designation Existing Proposed

N Limit revised
o limit

1 Postmaster of CPC No Limit No Limit

of HOs / GPOs

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, 76 / 1000 WLA , 60 / 1000

CWL SA CWL SA

EA 52 / 1000 EA 48 / 1000
SA SA

Joint Life 52 / 1000

SA

Children 52 / 1000 Children 48 / 1000

SA SA

AEA 48 / 1000 AEA 45 / 1000

SA SA
 Terminal Rs. 20/ Terminal Rs. 20/
Bonus 10000 SA Bonus 10000 SA
subject to a subject to a
maximum maximum
of Rs. of Rs.
1000** 1000**
WL/EA – WL/EA –
Policy term Policy term
should be should be
20 yrs or 20 yrs or
more 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 Postmaster, Sr. PM, Dy CPM,

aggregate sum assured) AD of HO headed by Director

Above 20 lakhs Divisional Head , Chief

Postmaster, Dy Director of HO
headed by Director

Early death claim cases DPS – Region- HQ Director ,

irrespective of the sum GPO
assured (death within 3 years
of acceptance of policy)

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 GPO
Director

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 10% of the first year premium
than 25 years 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 10 days

nomination

Issue of acceptance letter , Issue of policy bond, Revival of 15 days

policy, Conversion of policy, Maturity claim
settlement/Paid up value of policy/ Survival benefit
payment

Death claim without investigation 30 days

Death claim with investigation 90 days