Postal life insurance

1.6.1

Postal Life InsuranceEligibilityPermanent resident in India who are employees of

Central and state Govts Defence services GDS employees Govt.aided educational Institutions Universities established by Govt. Local bodies like municipalities,Zilla parishads RBI,SBI its subsidiaries Nationalised banks Port trusts,central and state govt. undertakings

1.6.2

Types of policies

1.Whole life assurance

(SURAKSHA)

Bonus Rs.90/per thousand

------------------------ 2.Convertible whole life

assurance(SUVIDHA) Bonus: proportionate

Payable only after the death of the policy holder

Policy will be in force till the death of the insurant

Premium payable upto 55/58/60 years

---------------------

Converted into endowment assurance

after 5 years

1.6.3

Types of policies.,3.Endowment assurance (SANTHOSH)

Bonus: Rs.65/ per thousand

Maturing at the age of 35/40/45/50/55/

58/60 years

Payable to the insurant after maturity of the policy

In case of death, nominee will be paid full amount of the sum assured with accrued bonus

1.6.4

Types of policies 4.Anticipated endowment assurance(SUMANGAL) It is a money back

policy There are two types; 15 years policy 20 years policy Bonus Rs.65/ per

thousand Maximum age at entry

40/45 yrs

Benefits paid

15yrs 20yrs policy

After 6yrs 8 yrs 20%

After 9yrs 12yrs 20%

After 12yrs 16yrs 20%

After 15yrs 20yrs

40%+bonus

1.6.5

Types of policies

5.Yugal Suraksha The sum assured payable at the end of the

endowment term or on the death of either of the two lives assured

Bonus Rs65/per thousand Only one can have this policy Spouse should be literate

When added to the age of the proponent the term should not exceed 60 years

1.6.6

Types of policies continued.,

o 6.Children’s policy: This is an add on policy introduced 20.1.2006.

o non-medical policyo the minimum limit is Rs,20,000/ ando maximum is Rs.1,00,000/o The parent should also have a policy

equivalent to amount of sum assured

of the child

Bonus Rs.65/ per thousand

1.6.7

Children’s policy continued

Child’s age should be between 5 and 20 years

Parent should not be above 45 years One EA policy per child Only two children

In case of death of insured of main policy before expiry of children’s policy no further premium need be paid

1.6.8

Age conditions

Whole life/EA Yugal Suraksha AEA Convertible W/L Children’s policy

Non-medical Above 5 lakhs

Minimum/maximum

19 55

21 45

19 40/45

19 50

Child’s age5-20

Parent’s age 45

19 35

19 50

1.6.9

Conditions continued..

Policies should be units of Rs.10000/ minimum being Rs.20000/

Maximum Rs.20,00,000/ For non-medical –Maximum Rs.1,00,000/ For Physically handicapped Maximum

Rs.1,00,000/

1.6.10

Medical report

Medical report is necessary in

cases:

1 When age at entry exceeds 35 years

2 When sum assured exceeds

1,00,000

3 When policy maturing at the 35

years of age

4 AEA policies

1.6.11

Rebate

Policies of Rs.20,000/ and above Re 1/ rebate is given in monthly premium

For yugal Suraksha rebate of Re.1/ is allowed for first Rs.40,000/ and Re.1/ for every addl Rs.10,000/

1.6.12

Other salient features

Premium paid is eligible for income tax rebate

Premium can be paid in Post office by presenting premium receipt book

Risk on life Assured is covered from the

date of acceptance

1.6.13

Advance premium

Rebate for advance premium

12 months: 2%

6 months : 1%

3 months : 0.5% (for RPLI only)

Yugal Suraksha

12 months :50% of one month’s premium

6 months :10% of one month’s premium

3 months : 2% of one month’s premium

1.6.14

Features continued..

If aggregate of the proposal exceeds 5 lakhs, it is to be accepted by the DPS

The age of the proponent should not exceed 50 years if the aggregate of the sum assured exceeds 5 lakhs

The validity of the Medical certificate is 60 days If it is not accepted within that period, second

medical examination is to be done

1.6.15

Bonus

Whole life policy Rs.90/ per thousand

Endowment Assurance Rs.65/ “

Anticipated endowment Rs.60/ “

Yugal Suraksha Rs.65/ “

Children Policy Rs65/ “

1.6.16

Lapsing and revival

If the policy is less than 3 years old premium can be accepted within 6 months from the date from which first premium was due with interest @12%

If the policy is more than 3 years old, premium can be accepted within 12 months from the date from which first premium was due with interest @12%

1.6.17

Calculation of interest for defaulted months premuim

Formula: n X (n+1) X premium

------------------------

200

n= no. of months

Or

No.of defaults x premium

-------------------------

100

1.6.18

Revival

If is not paid within this period

revival by competent authority is required

1.6.19

After sale service

1.Re.2/ fee for duplicate premium receipt book to be credited to UCR

2.Duplicate Bond Re 50/ to UCR Indemnity bond in stamp paper of Rs.100/ Policy above Rs.500000/ copy of paper notification 3.Change of mode of payment 4.Change of Post office 5.Correction to the bond 6.Conversion

1.6.20

Continuation premium receipt book

Sub postmasters are authorised to issue continuation PRB

SPMs to obtain blank PRBs from H.O and maintain stock register

The first page entries of old pass book to be copied, like, policy No.,Name of the insurant, class&sum assured, monthly rate of premium, date of last instalment, date of maturity, premium paid upto, non-credits etc

1.6.21

Loan

Endowment policies ,after 3 years only

Whole life policies, after 4 years

Should not have been assigned

No loan for AEA policies/children’s policy/Yugal Suraksha

1.6.22

Loan

Exceeding 3 years, but less than 5 years : 60% of surrender value

Exceeding 5 years, but less than 10 years : 80% of surrender value

Exceeding 10 years : 90% of surrender value Interest @10% per annum compounded half

yearly

1.6.23

Surrender

Endowment and whole life policy can be surrendered after 3 years

Children’s policy, after 5 years Original policy bond Premium receipt book or pay drawing officer’s

certificate

Surrender of policy to be discouraged

1.6.24

Types of claims

Maturity claim Death claim Death by suicide: no claim before the policy

completes two years from the date of acceptance

1.6.25

Maturity claim

Application in plain paper or prescribed form Original policy bond Premium receipt book or pay drawing officer’s

certificate Loan pass book, if any,

1.6.26

Death claim Documents to be attached with the claim; Original policy document Premium receipt book or pay disbursing officer’s

certificate for preceding one year Death certificate Doctor’s certificate/report who last attended the

late insurant Any other supporting document IP/ASP’s report If death is due to accident ,Post mortem report

and copy of FIR1.6.27

Non-medical policies(death claim) Death occurring within one year: 35%

Above one year but below 2 yrs: 60%

Above 2 years but below 3 yrs : 90%

Above 3 years : full

1.6.28

1.6.29

RURAL PLI (RPLI)

For Rural people

Whole Life (GRAMA SURAKSHA)

Endow Assurance (GRAMA SANTOSH)

Convertible Whole Life (GRAMA SUVIDHA)

Anticipated endowment assurance (GRAMA SUMANGAL)

Ten years Rural PLI policy (GRAMA PRIYA)

Children’s policy

1.6.30

RPLI-LIMITS

Minimum- Rs.10,000 Maximum-

-Rs.25,000 (without medical)

-Rs.5,00,000 (on medical)

-Rs.1,00,000(for non-standard age-proof and above 45 years)

1.6.31

RPLI-AGE LIMIT

Minimum- 19 on next DOB Maximum:

WL and EA 55

CWL and 10 yr Plan 45

AEA 40 Above 35 years only medical policies Above 45 policy upto 1,00,000/

1.6.32

RPLI-AGE LIMIT

Age proof Standard Non-standard

1.6.33

RPLI-Non-standard age proof

Horoscope- genuine Elder’s declaration in the presence of

Magistrate on stamped paper Age of the person given by him and as

assessed by Medical Officer whichever is higher

1.6.34

RPLI-Non-standard age proof…

Declaration by proposer before (not on stamp paper) Secretary or Member of Panchayat Tahasildar BDO

5 % extra premium for non-standard age proof

1.6.35

RPLI

Low Premium with following rate of rebate Monthly Re.1/ per 20,000 Quarterly Rs.3/ -------do---- Half yearlyRs.6/--------do---- Yearly Rs.12/-------do-----

1.6.36

RPLI

Rebate for advance payment of monthly premium

- 12 months 2.0%

- 06 months 1.0%

- 03 months 0.5%

1.6.37

RPLI

Loan- EA after 3 years- WL after 4 years

Surrender/paid up; after 3 years of payment of premia

Non lapsation; after 3 years automatically kept alive to

paid up value

1.6.38

RPLI

Bonus

-Endowment Rs.50 per 1000 S/A

-W/L Rs.65 per 1000 S/A

1.6.39

RPLI

If not paid within due period DF at 12% collected

Calculation of DF for arrears of monthly premiums – as in the case of PLI

For quarterly, Half Yearly and Yearly premiums calculated with the help of the following formula.

1.6.40

No. of defaulted months x premium

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100

1.6.41

Thank you

1.6.42