Take responsibility of your family just like they took yours back then. Redeem the benefits of Rural Postal Life Insurance with India Post today!
Introduction of RPLI :-
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). The Committee had observed in 1993 that, only 22% of the insurable population in this country had been insured; life insurance funds accounted for only 10% of the gross household savings. The Committee had observed:
“The Committee understands that Rural Branch Postmasters who enjoy a position of trust in the community have the capacity to canvass life insurance business within their respective areas…..”
The Government accepted the recommendations of Malhotra Committee and allowed Postal Life Insurance to extend its coverage to the rural areas to transact life insurance business with effect from 24.3.1995, mainly because of the vast net work of Post Offices in the rural areas and low cost of operations. The prime objective of the scheme is to provide insurance cover to the rural public in general and to benefit weaker sections and women workers of rural areas in particular and also to spread insurance awareness among the rural population. As on date we have about 74 lacs RPLI policies.
Till 1999, life insurance sector was the monopoly of the LIC and PLI was exempted under LIC Act and was allowed to transact life insurance business with a very limited clientele base. With the liberalization of Insurance sector PLI and RPLI have to work in a very competitive market. It has the advantage of using the infrastructure of the Department of Posts and its vast net-work and hence can offer life insurance cover at a lower cost than the other insurance companies. It has lower premium rate and higher bonus. Therefore various scheme of PLI and RPLI are very popular and doing extremely well in the rural sector. Both the schemes PLI as well as RPLI are entirely managed by the employees of the Department of Posts. Though the business has been growing substantially, it is being administered without appointing extra staff. All the benefits of such low cost operations are being passed on to the customers by way of low premium and higher bonus.
Benefits of RPLI :-
PLI is the only insurer in the Indian Life Insurance market today, which gives the highest return (bonus) with the lowest premium charged for any product in the market. For example, a person will pay about 26% to 36% less premium in comparison to the equivalent Whole Life policy of LIC, depending upon the age at entry. Similarly, for an Endowment policy he has to pay about 6% less premium in comparison to LIC. The bonus earned by a PLI policy is about 7% or more higher in comparison to a LIC policy. It is pertinent to mention here that the private insurance companies which have started life insurance business 2 to 3 years ago, have not been able to declare bonus so far, whereas in RPLI, we have been paying bonus since its first year of operation.
A PLI/RPLI policy holder may also get also following facilities :-
- Change of nomination.
- The insurant can take loan by pledging his/her policy to Heads of the Circle/Region on behalf of President of India, provided the policy has completed 3 years in case of Endowment Assurance and 4 years in case of Whole Life Assurance. The facility of assignment is also available.
- Assignment of Policy to any Financial Institution for taking loan.
- Revival of his/her lapsed policy. Policy lapses after 6 unpaid premiums if it remained in force for less than 3 years and after 12 unpaid premiums if it remained in force for more than 3 years.
- Issue of Duplicate Policy Bond in case of the original Policy Bond is lost, burnt or torn/mutilation.
- Conversion for Whole Life Assurance to Endowment Assurance and from Endowment Assurance to other Endowment Assurance as per rules.
RPLI Plans :-
RPLI offers following types of plans:
- Whole Life Assurance ( GRAMA SURAKSHA)
- Convertible Whole Life Assurance (GRAMA SUVIDHA)
- Endowment Assurance ( GRAMA SANTOSH)
- Anticipated Endowment Assurance (GRAMA SUMANGAL)
- GRAM PRIYA
- Scheme for Physically handicapped persons
The salient features of the Whole Life, Endowment, Convertible Whole Life and Anticipated Endowment Schemes of RPLI are same as the corresponding schemes of PLI except that the minimum Sum Assured is Rs.10,000 and the maximum Sum Assured is Rs. 10 lac (Ten Lac). The maximum age limit of entry is 55 years in case of Whole Life and Endowment Assurance but 45 years in case of the other plans.
All the schemes have compulsory medical examination. For the non-medical policies, the maximum limit of Sum Assured is Rs.25,000/-, and maximum age is 35 years. In case of Non-standard age proof for Rural PLI policies, the maximum age limit is 45 years.
In case of policies for physically handicapped persons in RPLI, the maximum limit of Insurance is Rs.20,000/- and the proponent can take any one of the plans. Rest of the features and the benefits payable are same as the corresponding scheme in PLI.
To know more, visit: http://www.postallifeinsurance.gov.in/
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