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 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.
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 facility
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 55 CWL and 10 yr Plan 45 AEA 40 Note:- 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/A Source: 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 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 Medical officer Insurant 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
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 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-
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… • 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.
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 Lapsing of Policy Premium not to be accepted without revival
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
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.
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
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