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Prelims Syllabus : Economy Mains Syllabus : Paper - III Inclusive growth

The Department of Posts plans to build on its life insurance, which can be seen as part two of the government’s flagship Jan Dhan Yojana for financial inclusion.

Schemes:

The Department of Post has two life insurance schemes Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI).

Postal Life Insurance (PLI):

Postal Life Insurance (PLI), the oldest insurer in the country was introduced under the Queen Empress of India in 1884.The scheme at the time was intended as welfare scheme to benefit Postal service employees. It was later extended to employees of Telegraph department.

Eligible:

  • This policy is offered by the Government of India, to employees of Central and State Public Sector Enterprises, Central and State Governments, Government Aided Educational Institutions, Universities, Government aided Educational Institutions, Autonomous Bodies, Local Bodies, Cooperative Societies, Joint Ventures having a minimum of 10% Government/ PSU stake, etc and later extended to professionals.
  • The minimum age limit for entry is 19 years and maximum age limit for entry is 55 years.

Features:

  • Postal Life Insurance Scheme offers Life Insurance cover with high returns on premium.
  • The maximum sum assured offered under this scheme is Rs. 50 Lakhs minimum 20,000.
  • Loan facility is available against this policy.
  • The insured can avail income tax exemption as provided under Sec. 88 of the Income Tax Act.
  • The policy can be transferred to any Circle within India, at no additional charges.
  • Name of nomination can be changed by the insured at any given time.
  • Government of India, guarantees Postal Life Insurance.

Rural Postal Life Insurance:

Rural Postal Life Insurance (RPLI) came into being as a sequel to the recommendation of the Official Committee for Reforms in the Insurance Sector (Malhotra Committee RPLI is the only insurance provider in the country to give the highest returns to customers at the lowest premium amount.

Eligible:

  • Customers who come within a rural area can only apply for schemes under RPLI.
  • The minimum age limit for entry is 19 years and maximum age limit for entry is 55 years.
  • Government and private employee are eligible.

Features:

  • Sum assured Rs10.000 to maximum of 10 lakhs.
  • Policyholders of rural postal insurance schemes can avail credit by pledging their schemes as collateral for security.
  • Insurance policies can be converted from one scheme to another under rural postal insurance. So if a customer is not satisfied with features and benefits of one scheme, he/she can get it converted to another as per rules set by postal insurance department.
  • Government of India, guarantees Postal Life Insurance.
  • Name of nomination can be changed by the insured at any given time.

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