1. Postal life insurance
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2. Inspiration to Life - Motivational video of a young boy, an inspiration to millions.mp4
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3. Brief History of PLI Introduced on 1st February 1884.
In 1894, PLI extended insurance cover to female employees of P & T Department at a time when no other insurance company covered female lives.he employees of Telegraph department in 1888.
Introduced on 1st February 1884.
It was initially offered as a welfare scheme for the benefit of Postal employees in 1884.
Extended to the employees of Telegraph department in 1888.
In 1894, PLI extended insurance cover to female employees of P & T Department at a time when no other insurance company covered female lives.
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4. Why Life Insurance?
Social security is a big challenge for human beings since early days.
Life today has become so uncertain.
To make the future safe, one has to think of financial security.
We have many options available in the market to invest money but life insurance is the most profitable amongst these.(Why?)
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5. Why Life Insurance? Life Insurance has triple benefits.
Insurance (Covers life risk)
Investment (Gives you good return)
Income Tax (You get tax rebate)
Lower the age higher the benefits.
So one must get insured as early as possible.
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6. Life Insurance – How much?
Though there is no specific rule relating to it, however there are some following principles , generally followed by investors.
1 – Income Principle – It is advised that a person should get himself insured 6 to 8 times of his annual income.
2 – Income – Expenditure Principle - It is advised that a person should get himself insured 5 times of his annual income plus all recurring annual expenses.
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7. Life Insurance – How much?
3-Premium - Income percentage principle – It is applicable to very high income group persons. They should invest 6 % of their monthly income as premium of sum insured on them and 1% on each of their dependents.
4 – Family need principle – A person should get himself insured to the amount that if he dies, the expenses of his family are not effected.
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8. Why PLI ? Deduction of premium from salary.
Highest bonus and lowest premium in comparison to any other life insurance provider.
Rebate on advance deposits.
Equal premium irrespective of gender and service conditions.
Deposit of premium through cheque.
Pass book facility.
Income tax rebate
Nomination and loan facility.
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9. Postal Life Insurance – Who can buy?
Permanent resident of India who are employees of
Central and State Governments
Defense services
GDS employees
Govt. aided educational Institutions
Universities established by Govt.
Local bodies like municipalities , Zilla Parishads
RBI,SBI its subsidiaries
Nationalized banks
Port trusts, central and state govt. undertakings
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10. Continued….
Employees on contract basis by central/State Govt, where contract is extendable
Employees of joint ventures in which state/central/PSU/Nationalized banks have min holding of 10%
Employees of deemed universities and educational institutions accredited by recognized bodies
Employees of cooperative societies registered with the Government.
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11. Types of policies 1.Whole life assurance (SURAKSHA)
Bonus Rs.85/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 up to 55/58/60 years
Converted into endowment assurance after 5 years
Note- Bonus of EA will be paid from the date of commencement of policy if WLA or CWLA is converted in to EA
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12. 3.Endowment Assurance (SANTHOSH)
Bonus: Rs.60/ 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
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13. 4.Anticipated endowment assurance (SUMANGAL)
It is a money back policy
There are two types;
15 years policy
20 years policy
Bonus Rs.55/ 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
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14. 5.Yugal Suraksha
1. The sum assured payable at the end of the endowment term or on the death of either of the two lives assured
2. Bonus Rs60/-per thousand
3. Only one can have this policy
4. Spouse should be literate
5. When added to the age of the proponent the term should not exceed 60 years
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15. 6.Children’s policy This is an add on policy introduced 20.1.2006.
1. Non-medical policy
2. The minimum limit is Rs,20,000/ and
maximum is Rs.3,00,000/
3. The parent should also have a policy
equivalent to amount of sum assured
of the child
4. Bonus Rs.60/ per thousand
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16. Children’s policy continued
5. Child’s age should be between 5 and 20 years
6. Parent should not be above 45 years
7. One EA policy per child
8. Only two children
9. In case of death of insured of main policy before expiry of children’s policy no further premium need be paid
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17. Age conditions
Whole life/EA
Yugal Suraksha
AEA
Convertible W/L
Children’s policy
Non-medical
Above 5 lakhs
Minimum/maximum / Child’s age5-20 Parent’s age
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18. Conditions continued..
Policies should be in multiple of Rs.10000/- minimum being Rs.20000/-
Maximum Rs.20 lakh. ( Persons eligible for both PLI and RPLI can get insured for maximum sum of Rs 20 lakhs, out of which not more than Rs 5 lakhs can be under RPLI.
For non-medical –Maximum Rs.1,00,000-/
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19. 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 adl. Rs.10,000/-
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20. 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
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21. 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
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22. Features continued..
The validity of the Medical certificate is 60 days
If it is not accepted within that period, second medical examination is to be done
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23. Bonus
Whole life policy Rs.85/ per thousand Endowment Assurance Rs.60/ “ Anticipated endowment Rs.55/ “ Yugal Suraksha Rs.60/ “ Children Policy Rs.60/ “
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24. HOW TO CALCULATE PREMIUM?
TRAINER TO GIVE DEMO ON CALCULATION OF PREMIUM FROM THE TABLES.
ALSO GIVE DEMO ON THE CALCULATION OF REBATE ON SUM ASSRUED & REBATE ON ADVANCE DEPOSITS.
PROVIDE TABLES OF PREMIUM CALCULATIONS.
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25. 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
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
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26. Revival If is not paid within this period
revival by competent authority is required
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27. 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
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28. 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 / copy of paper notification
3.Change of mode of payment
4.Change of Post office
5.Correction to the bond
6.Conversion
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29. 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 installment, date of maturity, premium paid upto, non-credits etc
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30. 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
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31. Loan Exceeding 3 years, but less than 5 years : 60% of surrender value
Exceeding 10 years : 90% of surrender value
per annum compounded half yearly
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32. Surrender Surrender of policy to be discouraged
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
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33. Surrender Paid up value=Sum assured X Paid period
Payable period
Surrender amount=(Paid up value +Proportionate Bonus) X S.F
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34. Types of claims Maturity claim Death claim
Death by suicide: no claim before the policy completes two years from the date of acceptance
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35. 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,
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36. 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
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37. 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
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38. Life Insurance sector has a huge potential in India.
YOUR ROLE AND BENIFITS
Life Insurance sector has a huge potential in India.
DOP can become a market leader in this field.
PLI/RPLI are the best life insurance options available in the market.
As a Postal worker ,You can contribute not only to the department but can earn a handsome commission on selling PLI/RPLI products.
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39. YOUR ROLE AND BENIFITS
Firstly ask a customer ,what monthly amount he/she is planning to invest in PLI/RPLI.
What are his/her short term and long term goals in.
Suggest suitable policies accordingly.
Never suggest small investor to buy single policy of bigger sum.
Do not hide any information from the customer.
Always provide best after sale services.
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40. Rural Postal Life Insurance
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41. 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
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42. 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)
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43. 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 up to Rs. 1,00,000/
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44. RPLI-AGE LIMIT
Age proof
Standard
Non-standard
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45. 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
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46. 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
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47. RPLI Monthly Re.1/- per 20,000/- Quarterly Rs.3/- -------do----
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-----
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48. RPLI - 12 months 2.0% - 06 months 1.0% - 03 months 0.5%
Rebate for advance payment of monthly premium
- 12 months 2.0%
- 06 months 1.0%
- 03 months 0.5%
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49. RPLI-after sale service
Loan
Surrender
Revival
Maturity
Claims
Miscellaneous
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50. Loan may be granted on the security of following policies
- EA after 3 years
- WL after 4 years
No loan on AEA, & 10-yr RPLI
Insurant to submit dully filled, signed application along with policy bond and PR Book to the BPM.
The BPM shall immediately forward all the papers to the Head of Division through account office
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51. Loan
Loan is granted upto certain percentage of surrender value as furnished below.
Interest at the rate of 10% per annum calculated half yearly
WLA EA
Exceed 4 yrs
60%
Exceed 3 yrs
Exceed 7 yrs
80 %
Exceed 5 yrs
Exceed 12 yrs
90%
Exceed 10 yrs
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52. RPLI- Surrender after certain period as belowEA
After 3 years
WLA
After 4 years
Children Policy
After 5 years
AEA
Not permissible
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53. RPLI- Surrender Heavy loss therefore discourage
Application in plain paper or prescribed form along with
Policy bond
PRB or PDO Cft
Calculation as per formula and Surrender Value Factor
The BPM concerned shall immediately forward all the papers to the Head of Division through account office
Heavy loss therefore discourage
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54. Maturity payment
1. Insurant to submit application in prescribed form or in plain paper duly signed along with PR book, Policy Bond to the PM .
2. The PM concerned shall immediately forward all the papers to the Head of Division through account office
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55. Claim settlement Claims owing to death of Insurant
Nominee to apply in the prescribed form & enclose the following documents
Original Policy
PRB or PDO Certificate
Death Certificate
Doctor Certificate/Report, who attended
Death due to accident Post Mortem Report & copy of FIR
Death due to suicide policy paid for Three years
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56. RPLI Bonus -Endowment Rs.50/- per 1000 S/A -W/L Rs.65/- per 1000 S/A
-AEA Rs.47/-per S/A
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57. Commission Structure
Present commission structure 10% of first year’s premium collection (say the premium is Rs.5000)/ Rs. 500/ Subsequent years 2.5% of premium collection Rs.125X19 yrs Rs. 2375/ Total commn. earned Rs.2875
Earlier commission structure
Suppose if it is a policy for 20 yrs, for Rs. 1,00,000/ first yrs’commission Rs. 250/
For subsequent years
premium collection, say the yearly premium is Rs.5000/
1% of premium Rs.50X19
( no. of yrs) /
Total commission earned Rs. ( ) Rs. 1200/
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58. Success stories of BPMs of Orissa Circle
1. Sri. Bipin Bihari Patnaik, BPM procured Crores RPLI business during
2. Sri. Golak Jena, BPM, procured 31.3 crores RPLI business
3. Sri. Sangram Keshari Mahapatra, BPM procured 27.4 crores business
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59. Approximate commission earned by the BPMs
Suppose the monthly premium is Rs. 300/ for Rs.1,00,000/ policy, maturing at the age of 50 years
Yearly premium is Rs.3600/
10% commission is Rs.360/
For 57 crores he will earn Rs. 18 lakhs commission per year
IMAGINE!!!!
The scope for making the business !!!
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60. Exercise
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61. Thank You
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