Rural Postal Life Insurance

PLI- Eligibility Government servants Defense Service GDS Govt aided Educational Institutions Universities established by Govt Local Bodies- Muncipalities, ZPs Banks

PLI- Plans available 1. Whole Life Assurance (SURAKSHA) Payment only to nominee on death of insurant Premium payable for selected period

PLI- Plans available 2. Endowment Assurance (Santhosh) Lump sum payment at desired age Payment to nominee- on death

PLI- Plans available 3. Convertible Whole Life Assurance (Suvidha) Less premium for 1st 5 years Conversion option with higher premium

PLI- Plans available 4. Joint Life Insurance (Yugala Suraksha) Payment at the end of term Payment to either of two lives- on death

PLI- Plans available 5. Anticipated Endowment Assurance (Sumangala) Payment at periodical intervals Payment at the end of the term- on death

PLI- Plans available Children’s Policy Both parent’s and children’s risk covered Parent should have a policy Non-medical policy Minimum- Rs.20,000 Maximum- Rs.1 lac One E/A Two children only

PLI- Features Risk cover Premium calculated on the basis of Age at entry Maturing age/Premium ceasing age/term Rebate allowed Others: Each 20,000- Re.1/ Yugala Suraksha: First 40,000- Re.1/ & addl each 10,000 Re.1/

PLI- Features- Age restriction Plan Min Age Max Age Whole Life As 19 55 Endow.As Convert WLA 50 Anticipated EA 40/45 Yugal suraksha 21 45 Children policy

PLI- Features- Limit of holding Limit of Insurance In multiple of Rs.10,000 Minimum- Rs.20,000 Maximum WL, EA, YS- 10 lacs CWL, AEA - 05 lacs Children Poly- 1 lac Non-Medical- 1 lac PHP- 1 lac

PLI- Features Advance deposit of 1st premium Rebate 12 Months- 2% 6 Months- 1 % Rebate Yugalasuraksha 12 M- 50% of single Premium 06 M- 10% ---------do--------- 03 M- 02% ---------do---------

PLI- Features Recovery of premium from pay For defaulted premiums interest at 12% to be recovered High Bonus

PLI- Features- Bonus Type of Policy Rate of Bonus per Rs.1000 of sum assd Whole Life Assurance Rs.90 Endowment Assurance Rs.70 A/E Assurance Rs.65 Joint Life Insurance Children Policy

PLI- Medical Report Necessary for the following Age at entry exceeds 35 years Sum assured more than Rs.1 lac Endowment Poly maturing at 35 years of age Anticipated Endowment Policies

Exercise 1

PLI- Loan Loans can be obtained from Banks Granted CPMG on security of policy 10 % interest compounded half yearly basis charged Entitlement on prefixed proportion of surrender value as per table below

PLI- Loan- entitlement Policy Year in force % of surrender value Whole Life and Convertible whole Life Ass 4 years 4-7 Yr : 60 % 7-12 Yr : 80 % > 12 Yr : 90 % Endowment Assurance 3 Years 3- 05 Yr : 60% 5- 10 Yr : 80% > 10 Yr : 90%

PLI- Surrender after certain period as below EA After 3 years WLA After 4 years Children Policy After 5 years AEA Not permissible

Heavy loss therefore discourage PLI- Surrender Application in plain paper Policy bond PRB or PDO Cft Calculation as per formula and Surrender Value Factor It is like taking a train ticket Bangalore to New Delhi and getting down at Nagapur Heavy loss therefore discourage

PLI-after sale service Payment of monthly premium Deptl employees & GDS recovery from pay and remittance directly to PLI Others Group Leader to make deposits as RD PRSS Individuals can also deposit in POs

PLI-after sale service Monthly premium if not paid within the due month can be paid with DF at 12 % Default fee at 12% collected for first 12 months For defaults exceeding 12 months 12% compound interest to be collected

PLI-after sale service Formula for default fee calculation: N(N+1) x Premium rate 200 N= Defaulted months

PLI-after sale service-Lapsing of Policy Policy less than 3 years Policy of more than 3 years If not paid within 6 months- treated as lapsed. Revival by CPMG If not paid within 12 months- treated as lapsed. Revival by CPMG Premium not to be accepted without revival

PLI-after sale service Transfer from one PO to another Manuscript application a/t CPMG through Post office Appln forwarded to CPMG Conversion; -W/L to E/A before 57 yrs Facility for nomination

PLI- After Sale Service Change mode of payment Correction to policy bonds Issue duplicate PRB- Fee Rs.5/- Change of PO for premium payment

PLI- After Sale Service Issue Duplicate Policy Bond- Fee Rs.50- Written application Indemnity bond Sum assured above Rs.500000- copy of paper notification

PLI- Maturity Due on the following month of last premium Application in LI-9(b) or in plain paper Policy bond PRB or PDO Cft Loan RRB PO to collect the above and submit to CPMG

PLI- Claim Applied in the prescribed form enclosing the following documents Original Policy PRB or PDO Cft Death Certificate Doctor Cft/Report, who attended Death due to accident Post Mortem Report & copy of FIR Death due to suicide policy paid for two years

Exercise 2

Rural Postal Life Insurance

RURAL PLI (RPLI) For Rural people Schemes: Whole Life (GRAMA SURAKSHA) Endow Assurance (GRAMA SANTOSH) Convertible Whole Life (GRAM SUVIDHA)

RURAL PLI (RPLI) Anticipated Endowment (GRAM SUMANGAL) 10 Year Rural PLI (GRAM PRIYA)

RPLI-LIMITS Minimum- Rs.10,000 Maximum- -Rs.25,000 (without medical) -Rs.3,00,000 (on medical)

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

RPLI-AGE LIMIT Age proof Standard Non-standard

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

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

Exercise 3

RPLI Low Premium with following rate of rebate Monthly Re.01/ per 20,000 Quarterly Rs.03/ -------do---- Half yearly Rs.06/--------do---- Yearly Rs.12/-------do-----

RPLI Rebate for advance payment of monthly premium - 12 months 2.0%

RPLI Loan Surrender/paid up; after 3 years of payment of premia - 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

RPLI Bonus -Endowment 55 per 1000 S/A -W/L 60 per 1000 S/A

RPLI All BPM s and SPM s of Rural area are Agents Premium collected at BO also

RPLI Procedure for premia collection- Similar to PLI Separate Receipt Book prescribed Entry made in the pass book Particulars of Premia noted in the Daily Account in SO and PLI Schedule at HO

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.

RPLI Interest = Premium X Months x Rate of Int --------------------------------------- 100 X 12

Non-medical/physically handicapped policy 35% of sum assured +accrued bonus 60% of sum assured+ accrued bonus 90% of sum assured +accrued bonus 100% in c/o death occurs If death occurs within 1 year Death occurs within 2 years Death occurs within 3 years After completion of 3 years

Thank you