Page 11 - LIFE INSURANCE TODAY Novemver 2017

Postal Life Insurance (PLI)

Postal Life Insurance (PLI) was introduced on 1st Feb- PLI is an exempted insurer under Section 118 (c) of the
ruary 1884 with the express approval of the Secretary of Insurance Act of 1938. It is also exempted under Section
State (for India) to Her Majesty, the Queen Empress of In- 44 (d) of LIC Act, 1956.
dia. It was essentially a scheme of State Insurance mooted
by the then Director General of Post Offices, Mr. F.R. Hogg PLI offers 6 (Six) types of plans:
in 1881 as a welfare scheme for the benefit of Postal 1. Whole Life Assurance (SURAKSHA)
employees and later extended to the employees of Tele-
graph department in 1888. In 1894, PLI extended insurance 2. Convertible Whole Life Assurance (SUVIDHA)
cover to female employees of P & T Department at a time 3. Endowment Assurance (SANTOSH)
when no other insurance company covered female lives. It 4. Anticipated Endowment Assurance (SUMANGAL)
is the oldest Life insurer in this country.
5. Joint Life Assurance (YUGAL SURAKSHA)
In the beginning, the upper limit of life insurance was only 6. Children Policy(BAL JEEVAN BIMA)
Rs 4000/- which has now increased to Rs 50 lacs (Rupees
Fifty Lacs) and it will be effective as and when notified Whole Life Assurance:
through a Gazette notification for all schemes combined - This is a scheme where the assured amount with accrued
Endowment Assurance and Whole Life Assurance. Over the bonus is payable to the assignee, nominee or the legal heir
years, PLI has grown substantially from a few hundred poli- after death of the insurant or to the insurant himself/her-
cies in 1884 to more than 6.4 millions policies as on self after attaining the age of 80 years. Minimum Age at
31.03.2015. entry is 19 years and the maximum Age at entry is 55 years.
The minimum Sum Assured is Rs 20,000 and the maximum
It now covers employees of Central and State Governments, Sum Assured is Rs 50 lacs.
Central and State Public Sector Undertakings, Universities,
Government aided Educational institutions, Nationalized The policy can be converted into an Endowment Assurance
Banks, Local bodies, autonomous bodies, joint ventures Policy after completion of one year and before 57 years of
having a minimum of 10% Govt./PSU stake, credit co-op- age of the insurant. Loan facility is available after comple-
erative societies etc. PLI also extends the facility of insur- tion of four years and policy can also be surrendered after
ance to the officers and staff of the Defence services and completion of three years. The policy is not eligible for
Para-Military forces. Apart from single insurance policies, bonus if surrendered or assigned for loan before comple-
Postal Life Insurance also manages a Group Insurance tion of 5 years. Proportionate bonus on the reduced sum
scheme for the Extra Departmental Employees (Gramin Dak assured is accrued if the policy is surrendered or assigned
Sevaks) of the Department of Posts. for loan.

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Life Insurance Today November 2017 11

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