Postal Life Insurance – Clarification/instructions on various points raised during recent PLI workshop: Department of Posts
Ministry of Communications
Department of Posts
(Directorate of Postal Life Insurance)
Chanakyapuri P.O. Complex
Dated: 25th July 2023
Sub: Clarification/instructions on various points raised during recent PLI workshop.
A number of issues were raised during the PLI workshop held on 25th and 26th under the chairmanship of Director General Postal Services. The points raised along with necessary clarification/instructions are as under: –
|Sno.||Issue raised||Clarification/instruction on the issue|
|1.||Requirement of Self-declaration in case of reinstatement of PLI/RPLI policy||a. As per the provisions made in Rule 56(3) of POLI Rules 2011, the insured person must submit declaration of good health in case of reinstatement of his PLI/RPLI policy.
b. Accordingly, declaration of good health shall be obtained before reinstatement of such PLI/RPLI policies.
|2||Review of payment of revival amount in case of revival of a PLI/RPLI Policy where revival amount is chosen to be paid in instalments.||a. As per the provisions made in Rule 58(4) of POLI Rules 2011, a lapsed PLI/RPLI can be revived in convenient instalment not exceeding 12 and the risk of the life assured shall be covered from the date of deposit of first instalment provided that subsequent instalments are being paid regularly along with the monthly premium.
b. The rule is explained as under with an illustration as under: –
Suppose an insurant submitted a revival application on 5th of January and his revival request is approved by approving authority on 10th of the same month with the option of payment of revival amount in 12 instalments. Then, the insurant must pay the first revival instalment (including the premium due for the month of January) by 31st January with 2nd revival instalment to be paid on or before the first day of subsequent month i.e. on oF before 1st Feb. However, if insurant pays the first and second revival instalments in the month of January itself, then the next revival instalment (i.e., 3rd instalment) shall become due to be paid on or before 1st March. In this way, he can get a period of complete 1 month (whole month of February) to pay his 3rd instalment. This process should be followed for subsequent instalments also. Further, premium amount shall be continuously paid on the due date or within the grace period of a particular month to avoid further lapsation.
c. Accordingly, insurant(s) opting for payment of revival premium in instalments may be ‘advised that they should opt for paying Ist and 2nd revival instalments (apart from premia payable) in the month of revival itself, so that he/she gets next complete month for paying the 3rd revival instalment. He/she should be further advised to continue paying subsequent revival instalments in such manner only, to avoid lapsation. Apart from payment of revival instalments, the due premia should also be paid on the due dates or within the grace period to avoid lapsation.
d. Therefore, in other words, policyholder should prefer to pay first two revival instalments in one go, during the month of revival of the policy with his/her premia.
|3||Mandatory inclusion of mobile/e-mail||
a. Mobile no. and email are such data that can provide a great help in keeping our customers timely informed about their premium due date, maturity due date, status of their various financial/non-financial requests, special messages from the Department from time to time. Apart from this, updation of mobile no. and email in a policy, provides the insurant with an option to pay their PLI/RPLI premium through online mode.
b. It is therefore requested to sensitize PLI/RPLI salesforce tomandatorily obtain mobile no. and email-id for each new PLI/RPLI proposal. Further, PLI-CPC and Post Office Staff may be instructed to collect these details while an insurant visit a Post Office or PLI-CPC for premium payment or for submission of various financial and non- financial requests.
c. Further, notice board can be displayed at Post Office premises for our PLI/RPLI customers to get the mobile no./email updated conveniently and easily over toll free no. 1800-266-6868.
d. It is further intimated that Divisional Office have been provided access of DWH reports option, where they can generate a report of all active policies of a particular Branch Office/ Sub Office and share the details of all those PLI/RPLI policies which do not have mobile no./email address, with the concerned offices to get the details updated in the system. In case of Branch Offices, they may obtain these details from the insurants and share it with concerned Account Office for updation.
2. This information may be widely disseminated among all CPCs, Counter Staffs, sales forces for wide publicity and for taking necessary action accordingly.
General Manager (Operations)