Postal life Postal life insuranceinsurance

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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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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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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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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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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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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.2.1.1

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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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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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 yearsNote- 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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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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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 policyAfter 6yrs 8 yrs 20%After 9yrs 12yrs 20%After 12yrs 16yrs 20%After 15yrs 20yrs 40%

+bonus

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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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• This is an add on policy introduced 20.1.2006. A. 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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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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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 50Child’s age5-20Parent’s age 45 19 35 19 50

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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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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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Rebate for advance premium12 months: 2%6 months : 1%3 months : 0.5% (for RPLI only)Yugal Suraksha 12 months :50% of one month’s premium6 months :10% of one month’s premium3 months : 2% of one month’s premium

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Medical report is necessary in cases:1 When age at entry exceeds 35 years2 When sum assured exceeds 1,00,000/-3 When policy maturing at the 35 years of age4 AEA policies

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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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Whole life policy Rs.85/ per thousandEndowment Assurance Rs.60/ “Anticipated endowment Rs.55/ “Yugal Suraksha Rs.60/ “Children Policy Rs.60/ “

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• 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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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%

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

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Formula: n X (n+1) X premium ------------------------ 200 n= no. of months Or No.of defaults x premium ------------------------- 100

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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

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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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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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Exceeding 3 years, but less than 5 years : 60% of surrender value

Exceeding 5 years, but less than 10 years : 80% of surrender value

Exceeding 10 years : 90% of surrender value

Interest @10% per annum compounded half yearly

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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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Paid up value=Sum assured X Paid period ------------------------------- Payable periodSurrender amount=(Paid up value

+Proportionate Bonus) X S.F

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Maturity claim Death claim Death by suicide: no claim before the

policy completes two years from the date of acceptance

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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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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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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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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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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.2.1.1

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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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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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Minimum- 19 on next DOB Maximum:

WL and EA 55CWL and 10 yr Plan 45AEA 40

Above 35 years only medical policies Above 45 policy up to Rs. 1,00,000/

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Age proof Standard Non-standard

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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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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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Low Premium with following rate of rebateMonthly Re.1/- per 20,000/-Quarterly Rs.3/- -------do----Half yearly Rs.6/-------- do----Yearly Rs.12/-------do-----

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Rebate for advance payment of monthly premium

- 12 months 2.0%- 06 months 1.0%- 03 months 0.5%

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Loan Surrender Revival Maturity Claims Miscellaneous

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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

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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

60%

Exceed 7 yrs

80 % Exceed 5 yrs

80 %

Exceed 12 yrs

90% Exceed 10 yrs

90%

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EA After 3 years

WLA After 4 years

Children Policy After 5 years

AEA Not permissible

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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

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

-AEA Rs.47/-per 1000 S/A

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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) 950/

Total commission earned Rs. (250+950) Rs. 1200/

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

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1. Sri. Bipin Bihari Patnaik, BPM procured 50.5 Crores RPLI business during 2011-12

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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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!!!!IMAGINE!!!! The scope for making the business !!!The scope for making the business !!!

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Exercise

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Thank YouThank You

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