1. Rural Postal Life Insurance

2. Introduction Rural Postal life Insurance
Introduced in 1995
For the benefit of rural peoples
Transaction at Rural post offices only
Objectives:
provide insurance cover to the rural public in general
Benefit weaker sections and women workers of rural areas

3. RPLI- Features Risk cover and savings For Rural people in India
Low premium and High bonus
Pass book facility
Premium paid is exempted from Income tax u/s-88
Loan facility is available
Nomination facility is available
Insurance provided by Central Govt.

4. RURAL PLI (RPLI) Schemes: Whole Life (GRAMA SURAKSHA)
Premium ceasing at 55,58 & 60 years
Sum assured with bonus payable at death only
Loan facility
Low premium and high bonus compare to other RPLI schemes

5. Endowment Assurance (GRAMA SANTOSH)
Maturity at the ages 35,40,45,50,55,58 & 60
Sum assured with bonus payable at maturity or on death, which is earlier
Loan facility.

6. Anticipated Endowment (GRAM SUMANGAL)
Money back policy
Two terms 15 & 20 years plan
Full sum assured payable on death occuring before maturity even though survival benefits already paid.
Survival benefits payable if the insurant survives from the date of risk started.

7. Convertible Whole Life (GRAM SUVIDHA)
Two benefits- Pay less premium initially under WLA and get policy converted in EA after 5 years
Insurant can convert the whole life insurance scheme to Endowment scheme after 5 years
Otherwise policy may continue as whole life scheme till the maturity age.

8. 10 Year Rural PLI (GRAM PRIYA) Guaranteed Money back plan
Short term policy
Full sum assured payable on death occurring before the date of maturity even survival benefit already paid.
No loan facility
10 year plan
4 years
20 %
7 years
20%
10 years
60 % + Bonus

9. RPLI-LIMITS Minimum- Rs.10,000 Maximum- -Rs.25,000 (without medical)
-Rs.5,00,000 (on medical)
For handicapped maximum limit is Rs.1 lakh

10. RPLI-AGE LIMIT Minimum- 19 on next DOB Maximum: WL and EA 55
CWL and 10 yr Plan 45
AEA 40
Note:- For the non-medical policies, Maximum age is 35 years.

11. RPLI-AGE LIMIT
Age proof
Standard
Non-standard

12. Standard Age proof documents
Birth certificate issued by Govt.
Certificate of baptism for Christians
School/ college records showing the DOB
Pass port
SSLC marks card
Service book record

13. Non standard Age proof Horoscope Voter ID card
Declaration of age on stamp paper before Magistrate or notary
Self declaration and counter signed by Secretary or member of Panchayat
Tahsildar or BDO.
Note.1: 5% extra premium amount to be collected
Note.2: The maximum age limit is 45 years

14. RPLI Exercise Bonus is as follows -Endowment 50 per 1000 S/A
- AEA 47 per 1000 S/A
-W/L 65 per 1000 S/A
Source: Annual Report
Exercise

15. Services offered Acceptance of proposal Acceptance of premium
Nomination/Change of nomination
Sanctioning of Loan
Revival
Issue of Duplicate passbook/ bond
Conversion of policies
Maturity payment/Claims settlement

16. Process flow in RPLI Insurant Branch Office Division office SDI office
BPM accepted & verify the proposal
Calculate the premium, issue of receipt & sent for medical examination
Insurant fill the form and submitted to BPM
Medical officer will examine the proposer and sign the Medical form
Insurant
Medical officer
Branch Office
DO will examine the proposal form & accept the proposal, issue of acceptance letter , bond and PR book sent to Insurant
SDI will examine the proposal form & prepare CR sent to DO for acceptance
Division office
SDI office

17. Forms/ documents used in RPLI
Proposal Form - LI-01-
Medical form LI-09
Premium Receipt - LI Premium Pass book - LI-07
RPLI Journal - Annexure- C
Proposal Register - Nil
Loan application - LI-35

18. proposal form-Customer information
Customer should fill up the proposal form(LI-01)
Sign the form or impress left hand thumb impression, if illiterate, in presence of marketing staff/BPM
Copy of age proof to be attached.

19. Operating procedure- Role of PM
Examine the proposal form
Proper form used ( LI-01)
Type of policy, term, plan & period mentioned
Name & permanent address of the applicant.
Nomination details
Details of children in c/o female
Other information
Signature/ Thumb impression
Declaration by the proponent/ person
PM should see that no column should left blank

20. Examine the supportive documents
Proposals not accepted if age proof not submitted
Age as on date
Health condition
Fitness

21. Calculation of age If standard age proof
Age should be calculated as on the date of proposal form accepted
Atleast 30 days gap should be given taken into account for calculation of premium
Copy of age proof documents should be verified with original

22. Calculation of age ( contd..)
If non standard age proof produced.
Genuineness of the document is to be confirmed.
In case of self declaration produced as age proof,
Age when exact date not known then,
If year of birth known DOB taken as 1st July
When only the month and year known the DOB taken as 16 th of the month

23. Operating procedure-
Calculate the premium
calculated on the proposer’s age on the next birthday on the date of proposal by referring the premium table
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-----
5% extra premium to be collected if the proponent not produced standard age proof.
Exercise-

24. Operating procedure- Role of PM
Accept first provisional premium and prepare receipt
Prepare receipt (LI-12) in triplicate (1copy- Proponent, II copy to AO with the proposal form & III copy- office copy)
Name, amount in words and figures, type of policy and month should be filled legibly.
Sign all copies of receipts and impress the date stamp.
Entry in the RPLI journal
Exercise

25. Medical examination
Medical examination is compulsory for Whole Life, Endowment, Convertible Whole Life and Anticipated Endowment
if the sum assured is maximum -5 lakhs
maximum age limit of entry is 55 years in case of whole life & endownment ,45 in case lf other plans
Non medical policy
Maximum sum assured is Rs 25000/
Maximum age limit is 35 years

26. Medical examination
Take the proposer along with proposal form to the Medical officer in person
The medical officer shall examine and record his/her findings in the separate form titled “Medical Examination Report”. And sign the proposal form
Proposer to put his signature/LTM on the application in presence of Medical Officer
Collect the proposal & medical form and sent to SDI office

27. Contd… SN Limit of Sum Assured Status of Medical Officer (a)
For Insurance up to and including Rs. 5 lac.
(i) Medical officer below the status of Civil Surgeon employed in Central and State Government, Municipal District Board, Local Board, Cantonment Board or Union Board Hospital or dispensaries and also Medical officers of units of Public Sector undertakings, both State and Central, nearest to the place of duty of the proponents.
(ii) Retired Medical Officers (Gr. II).

28. Contd… Forward the proposal to SDI
Inform the proposer that risk of his/her life will commence from the date of acceptance of the proposal.
If proposal not accepted for any reason, the premium will be refunded by deducting medical fee.

29. Acceptance of subsequent premium-Customer information
Premium is due on the first day of the month, which shall be extended up to the last day of the calendar month.
Production of P.R. book is mandatory
The premium must be paid in cash or cheque .
Obtain the PO receipt & ensure entries in premium receipt book

30. Subsequent premium collection
Premium will be collected based on the periodicity.
Grace period will be taken into consideration while calculating premium

31. Lapsing/ Revival of policies
A policy which is in existence more than three years shall be treated as lapsed if premium/ premia remain unpaid for more than twelve months premia
The policy for which any premia have become due, not paid either on any day of the month the policy shall become void.

32. Premium not to be accepted without revival
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/Dvnl Head
If not paid within 12 months- treated as lapsed. Revival by CPMG/Dvnl Head
Premium not to be accepted without revival

33. Contd…
Head of Division, may in his discretion, on receiving an application in the prescribed proforma allow a policy to be revived.
The arrears of premia along with interest payable thereon to be paid in lump or convenient installment not exceeding 12 installments

34. Acceptance of subsequent premium-Role of PM
Calculate interest in case of default if any as follows
Rate of interest is 12% per annum(Min.Re.1)
Formula for calculation of interest for monthly premium
Interest = Premium x Months x Rate of Int.
100 X 12
Interest = N(N+1)x Premium
200
( N= Defaulted months)

35. Acceptance of subsequent premium-
Calculation of rebate for advance deposit
Rebate for advance payment of monthly premium
- 12 months 2.0%
- 06 months 1.0%
- 03 months 0.5%

36. RPLI-after sale service
Loan
Surrender
Revival
Maturity
Claims
Miscellaneous

37. Loan
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

38. Loan
Loan is granted upto certain percentage of surrender value as furnished below.
Interest at the rate of 10% per annum
WLA EA
Exceed 4 yrs
60%
Exceed 3 yrs
Exceed 7 yrs
80 %
Exceed 5 yrs
Exceed 12 yrs
90%
Exceed 10 yrs

39. Surrender/paid up
Surrender of policy means the amount that is payable to an insured, when he foregoes the contingent benefit of his policy and surrenders it for an immediate cash payment
After 3 years of payment of premium.
The insurant of the policy, shall give notice of surrender, in writing, along with policy bond/Passbook to the Postmaster.

40. Eligibility for Surrender of RPLI PoliciesEA
After 3 years
WLA
After 4 years
Children Policy
After 5 years
AEA
Not permissible

41. Heavy loss therefore discourage
RPLI- Surrender
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

42. Maturity payment
Insurant to submit application in prescribed form or in plain paper duly signed along with PR book, Policy Bond to the PM .
The PM concerned shall immediately forward all the papers to the Head of Division through account office

43. Date of maturity is the date of completion of the term
Maturity amount will be calculated based on Policy amount + bonus
Bonus will be calculated
Bonus/1000 x sum assured x term

44. 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
Post Mortem Report & copy of FIR in case of accident

45. Miscellaneous transactions
Duplicate pass book
Duplicate Bond
Transfer of Policy
Change the name of the Insurant
Change of nominations

46. RPLI Commission
RPLI commission w.e.f (PLI Directorate letter No 26-02/2009-LI dated )
10 % of first year premium
2.5% of renewal premium collected

47. Thank you