IntroductionRural 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

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.

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

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.

Anticipated Endowment (GRAM SUMANGAL)

Money back policyTwo terms 15 & 20 years planFull 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.

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.

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 facility10 year plan

4 years 20 %

7 years 20%

10 years 60 % + Bonus

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

RPLI-AGE LIMIT

Minimum- 19 on next DOB Maximum:

WL and EA 55CWL and 10 yr Plan 45AEA 40Note:- For the non-medical policies,

Maximum age is 35 years.

RPLI-AGE LIMIT

Age proof Standard Non-standard

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

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

RPLI

Bonus is as follows

-Endowment 50 per 1000 S/A

- AEA 47 per 1000 S/A

-W/L 65 per 1000 S/ASource: Annual Report 2011-12

Exercise

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

Process flow in RPLI

Insurant Branch Office

SDI office

Medical officer

Division office

Medical officer will examine the proposer and sign the Medical form

Medical officer will examine the proposer and sign the Medical form

BPM accepted & verify the proposal

Calculate the premium, issue of receipt & sent for

medical examination

BPM accepted & verify the proposal

Calculate the premium, issue of receipt & sent for

medical examination

Insurant fill the form and submitted to BPM

Insurant fill the form and submitted to BPM

DO will examine the

proposal form & accept the

proposal, issue of

acceptance letter , bond and PR book

sent to Insurant

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

SDI will examine the

proposal form &

prepare CR sent to DO

for acceptance

Forms/ documents used in RPLI

Proposal Form - LI-01- Medical form - LI-09 Premium Receipt - LI-12 -

Premium Pass book - LI-07 RPLI Journal - Annexure- C Proposal Register - Nil Loan application - LI-35

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.

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

Examine the supportive documents

Proposals not accepted if age proof not submitted

Age as on date Health condition Fitness

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

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

Operating procedure- Calculate the premium

calculated on the proposer’s age on the next birthday on the date of proposal by referring the premium tablePremium 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-

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

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

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

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).

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.

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

Subsequent premium collection Premium will be collected based on

the periodicity. Grace period will be taken into

consideration while calculating premium

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.

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

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

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)

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%

RPLI-after sale service Loan Surrender Revival Maturity Claims Miscellaneous

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

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

60%

Exceed 7 yrs

80 % Exceed 5 yrs

80 %

Exceed 12 yrs

90% Exceed 10 yrs

90%

Surrender/paid upSurrender 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 paymentAfter 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.

Eligibility for Surrender of RPLI Policies

EA After 3 years

WLA After 4 years

Children Policy After 5 years

AEA Not permissible

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

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

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

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

Miscellaneous transactions

Duplicate pass book Duplicate Bond Transfer of Policy Change the name of the Insurant Change of nominations

RPLI Commission

RPLI commission w.e.f 01.10.2009 (PLI Directorate letter No 26-02/2009-LI dated 18.9.2009) 10 % of first year premium 2.5% of renewal premium collected