Postal life insurance

5.9 .1

Postal Life Insurance

EligibilityPermanent 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

5.9 .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

5.9 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

5.9 4

Types of policies: (SUMANGAL) 4.Anticipated endowment assurance

• 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 policyAfter 6yrs 8 yrs 20%After 9yrs 12yrs 20%After 12yrs 16yrs 20%After 15yrs 20yrs 40%+bonus

5.9 .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

5.9 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

5.9 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

5.9 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 50Child’s age5-20Parent’s age 45 19 35 19 50

5.9 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/

5.9 1.6.10

Medical report

• Medical report is necessary in cases:1 When age at entry exceeds 35 years2 When sum assured exceeds 1,00,0003 When policy maturing at the 35 years of age4 AEA policies

5.9 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/

5.9 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

5.9 1.6.13

Advance premium

• Rebate for advance premium12 months: 2%6 months : 1%3 months : 0.5% (for RPLI only)Yugal Suraksha 12 months :50% of one month’s premium6 months :10% of one month’s premium3 months : 2% of one month’s premium

5.9 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

5.9 1.6.15

Bonus

Whole life policy Rs.90/ per thousandEndowment Assurance Rs.65/ “Anticipated endowment Rs.60/ “Yugal Suraksha Rs.65/ “Children Policy Rs65/ “

5.9 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%

5.9 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

5.9 1.6.18

Revival

• If is not paid within this period revival by competent authority is required

5.9 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

5.9 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

5.9 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

5.9 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

5.9 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

5.9 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

5.9 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,

5.9 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 FIR

5.9 1.6.27

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

5.9 1.6.28

Exercise 1

5.9 1.6.29

5.9 1.6.30

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

5.9 1.6.31

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)

5.9 1.6.32

RPLI-AGE LIMIT

• Minimum- 19 on next DOB• Maximum:

WL and EA 55CWL and 10 yr Plan 45AEA 40

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

5.9 1.6.33

RPLI-AGE LIMIT

• Age proof– Standard– Non-standard

5.9 1.6.34

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

5.9 1.6.35

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

5.9 1.6.36

RPLI

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

5.9 1.6.37

RPLI

• Rebate for advance payment of monthly premium

- 12 months 2.0%- 06 months 1.0%- 03 months 0.5%

5.9 1.6.38

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

5.9 1.6.39

RPLI

• Bonus-Endowment Rs.50 per 1000 S/A-W/L Rs.65 per 1000 S/A

5.9 1.6.40

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.

5.9 1.6.41

• No. of defaulted months x premium--------------------------------------------------- 100

5.9 1.6.42

FRR to DOP for PLI Business

YEAR FRR (Rs. in Cr.)2007-08 (Actuals) 200.462008-09 (Actuals) 194.962009-10 (Actuals) 297.832010-11 (Actuals) 381.602011-12 (Actuals) 389.622012-13 (Actuals) 598.22

2013-14 (SY-I) 532.992014-15 (Estimates) 571.69

2015-16 (Projections) 697.662016-17 (Projections) 767.932017-18 (Projections) 844.17

5.9 1.6.43

Sl Amount of sum assured

Incentive payable

i. Up to Rs 9 Crores of sum assured.

Nil.

ii. Above Rs 9 crores and up to Rs 11 crores of sum assured.

Rs 25/- per Rs ten thousands of sum assured.

iii. Above Rs 11 crores of sum assured.

Rs 20/- per Rs ten thousands of sum assured.

5.9 1.6.44

Incentive structure for procurement of PLI business• DEVELOPMENT OFFICER (PLI/RPLI)

Departmental Officials viz ASPOs/IPs/PAs/SAs/SPM/Postman/Mailguard/Gp D/GDS BPM/GDS DA/GDS MC etc

Sl Amount of sum assured

Incentive payable

i. Up to Rs 2 crores of sum assured.

Rs 25/- per Rs ten thousands of sum assured.

ii. Above Rs 2 crores of sum assured.

Rs 20/- per Rs ten thousands of sum assured.

5.9 1.6.45

F.O (PLI) and Direct Agents (PLI) Sl Amount of sum assured Incentive payable

i. Up to Rs 30 lacs of sum assured..

Rs 15/- per Rs ten thousands of sum assured.

ii. Above Rs 30 lacs and up to Rs 40 lakh of sum assured.

Rs 17.50/- per Rs ten thousands of sum assured.

iii. Above Rs 40 lacs and up to Rs 50 lakhs of sum assured.

Rs 20/- per Rs ten thousands of sum assured.

iv. Above Rs 50 lacs of sum assured.

Rs 25/- per Rs ten thousands of sum assured5.9 1.6.46

C (i) Lump sum incentive (Only for Direct Agents/F.O. (PLI)

Sl Amount of sum assured Incentive payable

i. For effective business of Rs 5 lacs .

Rs 625/- (Rs six hundred and twenty five only).

ii. For effective business of Rs 10 lacs (gross) .

Rs 1250/- ( Rs one thousand and two hundred and fifty only).

iii. For an effective business of every Rs one lac , over and above Rs ten lacs.

Rs 125/- (Rs one hundred twenty five only) per every Rupees one lakh of effective business..

5.9 1.6.47

RENEWAL INCENTIVE ON SUBSEQUENT PREMIA DEPOSITS (IIND YEAR ONWARDS)

2% commission on renewal premium income towards policies procured on or after 01.10.2009 for Direct Agents and F.Os (retired officials) .

5.9 1.6.48

(II) RPLI business ( Direct Agents (RPLI),ASP, IP/SDI, Postmen/PA/SA/Mail Guard, F.O (retirees), D.O. (PLI) , GDS etc and other RPLI Sales Force

• 10% of First year premium towards the RPLI policies procured by them with effect from 01.10.2009

• 10% of total procurement incentive paid to GDS to SDI/ASP - in first year only.

• 2.5% of renewal premium income in respect of those policies procured on or after 01.10.2009 .

• 1% of renewal incentive payable to GDS employees towards the policies procured before 01.10.2009.

• Additional Commission of 1.5% of premium shall be paid to the Group Leaders /entrustees for collecting premium towards 1000 or more such RPLI policies procured on or after 01.10.2009

• 5.9 1.6.49

Incentive Rates for APS personnel

S.No Amount of PLI business procured

Rate of incentive

i) Upto Rs 30.00 lacs per annum Rs 7.50 per 10,000 of sum assured

ii) Above Rs 30.00 lacs and up to Rs 40.00 lacs per annum

Rs 8.75 per 10,000 of sum assured

iii) Above Rs 40.00 lacs up to Rs 50.00 lacs per annum

Rs 10.00 per 10,000 of sum assured

iv) Above Rs 50.00 lacs Rs 12.50 per 10,000 of sum assured5.9 1.6.50

Exercise 2 and Quiz

5.9 1.6.51

• Thank you

5.9 1.6.52