Amendment to Rule 16 (i) and Rule 61 of Post Office Life Insurance Rules, 2011

 Amendment to Rule 16 (i) and Rule 61 of Post Office Life Insurance Rules, 2011.

F.No.25-04/2021-LI
Ministry of Communications
Department of Posts
(Directorate of Postal Life Insurance).
Chanakyapuri PO Complex, New Delhi-110021

Dated: 27.04.2021

To
All Head of Circles

Sub: Amendment to Rule 16 (i) and Rule 61 of Post Office Life Insurance Rules, 2011.

The provisions in connection with settlement of claims arising due to death of insurant by suicide i.e. Rule 16 (i) and Rule 61 of Post Office Life Insurance (POLI) Rules, 2011 has been amended. The amendment provides as follows:

(i) payment of 80% of premia paid or surrender value, whichever is higher, in case of suicide committed before expiry of 1 year from date of acceptance or date of revival, whichever is later, and

(ii) treating suicide cases at par with other death claim cases if suicide committed after 1 year from date of acceptance or date of revival, whichever is later.

2. Accordingly, Gazette Notification amending Rules, 16 (i) and Rule 61 of POLI Rules, 2011 is enclosed (Annexure-]). Illustrations are enclosed as Annexure-II.

3. This instruction may be widely circulated in the Circle for compliance.

This issues with the approval of CGM (PLI).

(Shiv Kumar)
Assistant Director

Source: Click here to view/download the PDF

SOP for handling of PLI/ RPLI Loan cases: DoP Clarification Dt. 08 Oct 2020

 SOP for handling of PLI/ RPLI Loan cases: DoP Clarification Dt. 08 Oct 2020

No. 25-04/SOP/2020-LI
Government of India
Department of Posts

Directorate of Postal Life Insurance
New Delhi- 110 021

Dated: 08 Oct. 2020

Office Memorandum

Subject: SOP for handling of PLI/RPLI Loan cases

This is regarding issue of Standard Operating Procedure (SOP) for handling of PLI/RPLI Loan cases.

2. In order to expedite the process of settlement of PLI/RPLI Loan cases, the SOP containing the detailed procedure, action to be taken by different offices/officials at different stages, formats of Loan Application Form and other required documents etc. has been approved by DG (Posts).

3. This SOP will help in streamlining the current process of handling of PLI/RPLI Loan cases with uniformity across the country. It will further help in having clarity on what all to be done and what all not to be done in case of PLI/RPLI Loan application, which would ultimately lead to settlement of PLI/RPLI Loan cases in a time bound manner.

4, The approved SOP is attached herewith for wide circulation among all officials concerned with instructions to follow the same in letter and Spirit.

View: “Date of commencement of risk” for PLI/RPLI proposals: DoP Clarification Dt. 05 Oct 2020

5. This SOP may be widely disseminated across the Circles and all may be strictly instructed to follow the procedure laid down in SOP adhering to the timelines given in the SOP for carrying out different activities at various levels.

6. This issues with the approval competent authority.

(Hariom Sharma)
Dy. Divisional Manager-II

To

1. All CPMsG
2. CGM (BD)/CGM (Parcel)/CGM (CEPT)
3. Director, RAKNPA, Ghaziabad
4. Addl. DG, APS
9. All DDGs, Dak Bhawan
6. Director, PTCs
7. Director, PLI, Kolkata

Source: Click Here to view/download the pdf

Promotional and Incentive Structure of PLI / RPLI – Clarification in respect of sales force – DoP Order dated 31.08.2020

 Promotional and Incentive Structure of PLI / RPLI – Clarification in respect of sales force – DoP Order dated 31.08.2020

F.No: 28-03/2019-L1(3)
Government of India
Ministry of Communications
Department of Posts
(Directorate of Postal Life Insurance)

Chanakyapuri P.O Complex, New Delhi-110021

Dated 31.08.2020

Sub: Promotional and Incentive Structure of PLI / RPLI – Clarification in respect of sales force – reg

This is regarding the promotional and incentive structure of PLI/RPLI, circulated vide PLI Directorate OM No. 28-03/2019-LI dated 19.06.2020 and implemented in Circles w.e.f. 01.07.2020.

2. In this connection, the following is clarified in respect of sales force procuring, PLI/RPLI business:

Sl. No.	Issue	Clarification
(i)	Order of preference in payment of incentive to sales force of PLI/RPLI.	Direct Agents are not Departmental Employees and majority of them are dependent on incentive for their livelihood. Therefore, there is a need to nurture and handhold Direct Agents by way of giving priority to them in incentive payment. Accordingly, the following order of preference shall be followed by Circles while making payment of incentive to sales force of PLI/RPLI: (i) Direct Agents (ii) Gramin Dak Sevaks (iii) Field Officers (iv) Departmental Employees
(ii)	Nomination facility for sales force of PLI/RPLI.	(i) Nomination facility may be provided to sales force of PLI/RPLI. In the event of unfortunate death of a sales force, incentive will be paid to the nominee of that sales force for the PLI/RPLI business procured by that sales force for the period she/he was alive. (ii) Further, if the nominee of the deceased sales force wants to procure PLI/RPLI business, she/he may apply for fresh direct agency licence. If found suitable, the concerned Division may issue fresh licence to her/him. Procurement/renewal incentive shall be paid only for the business procured by her/him subsequent to the issue of fresh licence.
(iii)	Abolition of group agency system of  incentive	(i) Earlier, Group Leader was paid group incentive @ 7 % of the total procurement and renewal incentive payable to sales force under his jurisdiction. Resultantly, out of the total incentive on a PLI policy, the sales force used to get only 93% of the incentive and the remaining 7% used to be payable to the Group Leader. (ii) In the new incentive structure, the group incentive structure has been abolished and done away with. (iii) As a result, sales force of PLI and RPLI will get 100% of procurement and renewal incentive payable on PLI/RPLI policies as per prescribed rates effective from 01.07.2020. (iv) In the new structure, Development Officer will be paid procurement incentive @ 1 % of total PLI/RPLI new business premium procured by Direct Agents attached to that Development Officer. The incentive payable to Development Officer will be over, and above the incentive payable to Direct Agents working under her/him.
(iv)	Procurement of business by family members of Development Officer.	In order to avoid conflict of interest, members of family of business by family of Development Officer are not allowed to procure PLI/RPLI business and claim incentive. Members of the family for this purpose would include the following: (a) The spouse, but not including a separated spouse or one living separately while judicial separation proceedings are on; (b) Children and stepchildren but not including children and stepchildren of whose custody the serving postal employee has been deprived by law; (c) Other persons such as wards and parents, who are dependent on and live with the Development Officer.
(v)	Rate of incentive payable on PLI/RPLI policies.	Incentive payable on PLI/RPLI policies is being explained with the help of following illustration: For a PLI policy procured on 1st November 2009, the procurement and renewal incentive payable on this policy is detailed as under: (i) 01.11.2009 to 31.10,2010 (First Year Premium): PLI Procurement Incentive during this period will be paid as per the procurement incentive rate applicable during that period. (ii) 91.11.2010 to 30.06.2020: Renewal Incentive during this period will be paid as per the renewal incentive rate applicable during that period. (iii) 91.07.2020 onwards: Renewal Incentive from 01.07.2020 onwards will be paid @ 1% of renewal premium.

Standard Operating Procedure (SoP) for settlement of PLI / RPLI death claim cases

 Standard Operating Procedure (SoP) for settlement of PLI / RPLI death claim cases

CLICK HERE -- SOP (8pages)

CLICK HERE - CLAIM APPLICATION FORM (4 pages) - Annexure - I

Annexure - II (List of Documents)



Annexure - IV (Check List)



Annexure - V (Investigation Report)(2 pages)



Annexure - VI (Indemnity Bond) (2 pages)




Annexure - VII (Format for communication with claimant)

Procedure to Pay PLI premium through Online

PLI - Highlights, Monthly Premium and Maturity value at the age of 50, 55 and 58

Postal Life Insurance (PLI) Benefits

Pay PLI Premium through Debit / Credit Card without Service Charges & its activation procedure

    Please apply for online payment registration with aadhar, email and mobile number update in PLI records Today's Good News You can pay premium through Debit card ( ATM) / Credit card without any extra charge

How To Update Phone Number, Email Id For PLI Customers For Allowing Online Access 

To incorporate the mobile number and email address in the System the following procedures are to be followed by CPC.

1.  The policy holder is to submit an application to the CPC Head on person or through mail stating his/her policy number, Mobile number and email address ( Email address should be written on capital letters so that no mistake will occur by the CPC personnel while data entry is to be done) requesting incorporation of the same in the System. He/She is to enclose self attested photo copies of policy bond or first page of the P.R.Book and identity proof (photo copy Aadhar or Voter Card).

2.     He will submit these to the CPC and take receipt for submission of application, generated from the System.

3.     The CPC personnel will then follow the procedure as same as change of address done. i.e scan the documents, do ECMS and Data Entry and then Quality Check &.Finally Approval.

4.     After approval.

The CPC personnel will send him/her the reply to his/her Email address.to the effect that ' Your mobile number and email address has successfully been incorporated in the System. You may now feel free to register your policy online, set your password as per your choice and perform all sorts business relating to PLI/RPLI, as and when, required without visiting any Post Office or CPC.⁠⁠⁠⁠

Postal Life Insurance (PLI) Vs LIC - Which is best?

Do you know your Post Office also offers Life Insurance? Even if you know then there is a huge confusion among buyers like whether to buy with the Post Office or with LIC, because the Government of India backs both. Hence, let us see which is best for whom.

What is PLI (Postal Life Insurance)?

PLI (Postal Life Insurance) is exactly like any Life Insurance company, for example LIC or ICICI Pru Life Insurance. The only difference is, it is run and managed by Post Office. PLI currently offers only traditional plans. Therefore, no term insurance or ULIPs.

How many types of policies PLI (Postal Life Insurance) offers?

Currently PLI offers below mentioned traditional endowment products.

1) Whole Life Assurance Policy (Suraksha).

This is exactly like LIC’s Whole Life Policy. The nominee will receive the accrued bonus and sum assured after the death of the policyholder. Minimum age at entry is 19 Yrs and maximum is 55 Yrs. Minimum Sum assured is Rs.20, 000 and maximum Sum Assured is Rs.10, 00,000.

2) Endowment Assurance (Santosh).

This is a typical endowment plan where a policyholder gets sum assured along with bonus if he survive until the maturity period. In case of his death during the policy period, then his nominee will receive the sum assured along with accrued bonus. Eligibility criteria are same as that of Whole Life Assurance Policy (Suraksha).

3) Convertible Whole Life Assurance (Suvidha).

This plan is exactly like Endowment Assurance. The only difference is, if you don’t convert this policy to Endowment Assurance then it is treated as Whole Life Assurance plan.

4) Anticipated Endowment Assurance (Santosh).

This is typical money back endowment plan, where the maximum sum assured is restricted to Rs.5, 00,000. In this category, PLI offers two types of plans. One is 15 yrs and other is a 20 yr term.

5) Joint Life Assurance (Yugal Suraksha).

You can buy this policy with your spouse as co-insured. To avail this facility one the spouse must be eligible to buy PLI. Life Insurance coverage is for both husband and wife to the sum assured you bought. The maximum sum assured is Rs.1, 00,000.

6) Scheme for physically handicapped persons.

This plan is uniquely designed for handicapped persons. Based on the condition of handicap, premium raised or increased. Rest of plan features are exactly like the others.

7) Children Policy

PLI started to offer child policy from 2006. Few features are listed below.

• It mainly covers the life insurance of children.
• Maximum two children can be insured in a family.
• Children between 5 Yrs to 20 Yrs are eligible for this plan.
• Maximum Sum Assured is Rs.1,00,000.
•  Premium waiver benefit in case of main policy holder dies.
• In case of death of children, then sum assured along with bonus be payable to main policy holder.
• Responsibility of premium payment rest with main policy holder.
• 
  

So what is the difference between PLI and LIC?

• Eligibility-To buy PLI you must be employee of the Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies, etc. PLI also extends the facility of insurance to the  officers and staff of the Defense services and Para-Military forces. Where as LIC offers it’s plans to all citizens of India. So when it comes to flexibility to buy then LIC holds edge than PLI.
• Plans offered-There is no such difference. Because LIC and PLI mostly dependent on traditional endowment type of Life Insurance Plans. But along with that LIC offers term insurance (recently LIC launched online term insurance), which is not at all touched by PLI.
• Premium Rate-When compare to LIC or any private insurers, PLI offers cheap premium. So this is a most advantage of buying endowment plans with PLI than with LIC.
• Bonus Rate-Bonus offered by PLI is in the range of 7% or more. Whereas currently LIC offers a bonus rate of around 4% to 5%.
• Where to buy-In case of PLI, you have to visit to the Post Office where these schemes are offered. Whereas in case of LIC, you will easily get agents. These agents can come to your doorstep and offer the service. Along with that recently LIC launched an online buying also (restricted to online term plan and pension plan). Therefore, in case of buying LIC offers more flexibility than PLI.
• Age Limit-PLI offers insurance to the age group of 19-55 yrs. Where as in LIC you can get the insurance coverage up to 75 yrs (not in all policies).
• Maximum Sum Assured-PLI offers you the maximum sum assured of Rs.50 Lakh. Whereas, LIC offers an unlimited maximum sum assured.
• Premium Payment-You need to visit the Post Office to pay the premium dues. However, in case of LIC, you can pay it in branch, collection points or through online.
• Tax benefits-Both PLI and LIC offer same tax benefit for deduction under Sec.80C.

Considering all these features and differentiation between PLI and LIC, I feel PLI is still in olden days. Because it offers less insurance coverage, entry is restricted to only few, service issues, no term insurance and age limit. Whereas only two positive points that attract you towards PLI are lesser premium and higher bonus.

Whether it is prudent to buy endowment plans from PLI?

Even though PLI offers you higher return and lower premium compare to LIC and other private insurers, the returns in the long run may erode drastically if you consider the inflation. Along with that, you will be under insured due to restricted maximum insurance limit. Post Offices still not customer friendly. So you may face service issues and claim settlement issues.(now improved) 

Courtesy : http://www.basunivesh.com/

Revamping of Marketing (Sales) Structure of PLI / RPLI

PLI : Insuring Lives, Ensuring Future

Procedure to be Followed When PLI/RPLI Customer Loses their Receipt Book

An insured person who adopts the mode of paying premium in cash as a regular measure will be supplied by the Department with a premium receipt book in which entries relating to payment of each premium shall be made. 

The Postmaster receiving the monthly premiums will grant a receipt for the amount in this book. When the Book is filled up and has no further space for entries, it should be forwarded to the Postmaster/ Manager of Central Processing Center (GPO/Head Post Office) who after verifying the entries will arrange to issue a new Book in which it will be noted, under his signature, the month up to which premia have been paid.


In the event of a premium receipt book being lost, the insured person should apply, through the nearest Post Office (Head or Sub or Branch), to the Postmaster/ Manager of the Central Processing Center (GPO/Head Office) for a duplicate premium receipt book stating in his application the circumstances under which the original book was lost along with the prescribed fee Rs.5/-in computerized receipt. 

he Postmaster/Manager of the Central Processing Center (GPO/Head Office) will then issue a duplicate book and send it to the Post Office concerned for delivery to the insured person.