Postal life insurance 5.9

Postal Life Insurance Central and state Govts Defence services Eligibility Permanent 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

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

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

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 policy After 6yrs 8 yrs 20% After 9yrs 12yrs 20% After 12yrs 16yrs 20% After 15yrs 20yrs 40%+bonus 5.9

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

Types of policies continued., 6.Children’s policy: This is an add on policy introduced 20.1.2006. non-medical policy the minimum limit is Rs,20,000/ and maximum is Rs.1,00,000/ The parent should also have a policy equivalent to amount of sum assured of the child Bonus Rs.65/ per thousand 5.9

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

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 5.9

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

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 5.9

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

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

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 5.9

The validity of the Medical certificate is 60 days 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

Bonus Whole life policy Rs.90/ per thousand Endowment Assurance Rs.65/ “ Anticipated endowment Rs.60/ “ Yugal Suraksha Rs.65/ “ Children Policy Rs65/ “ 5.9

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

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

Revival If is not paid within this period revival by competent authority is required 5.9

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

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

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

Loan Exceeding 3 years, but less than 5 years : 60% of surrender value Exceeding 10 years : 90% of surrender value Interest @10% per annum compounded half yearly 5.9

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

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

Application in plain paper or prescribed form Original policy bond 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

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

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

Exercise 1 5.9

Rural Postal Life Insurance 5.9

Whole Life (GRAMA SURAKSHA) Endow Assurance (GRAMA SANTOSH) 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

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

Above 35 years only medical policies Above 45 policy upto 1,00,000/ 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/ 5.9

RPLI-AGE LIMIT Age proof Standard Non-standard 5.9

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

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

Low Premium with following rate of rebate 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

Rebate for advance payment of monthly premium RPLI Rebate for advance payment of monthly premium - 12 months 2.0% - 06 months 1.0% - 03 months 0.5% 5.9

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

RPLI Bonus -Endowment Rs.50 per 1000 S/A -W/L Rs.65 per 1000 S/A 5.9

If not paid within due period DF at 12% collected 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

No. of defaulted months x premium --------------------------------------------------- 100 5.9

FRR to DOP for PLI Business YEAR FRR (Rs. in Cr.) 2007-08 (Actuals) 200.46 2008-09 (Actuals) 194.96 2009-10 (Actuals) 297.83 2010-11 (Actuals) 381.60 2011-12 (Actuals) 389.62 2012-13 (Actuals) 598.22 2013-14 (SY-I) 532.99 2014-15 (Estimates) 571.69 2015-16 (Projections) 697.66 2016-17 (Projections) 767.93 2017-18 (Projections) 844.17   5.9

Up to Rs 9 Crores of sum assured. Nil. ii. Incentive structure for procurement of PLI business DEVELOPMENT OFFICER (PLI/RPLI) 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

Up to Rs 2 crores of sum assured. 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

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 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 assured 5.9

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

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

(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

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 assured 5.9

Exercise 2 and Quiz 5.9

Thank you 5.9