Amendments to Post Office Life Insurance Rules 2011 : Gazette Notification

Amendments to Post Office Life Insurance Rules 2011 : Gazette Notification

NOTIFICATION

No. 25-1/2020-LI.—The President is pleased to make the further following amendments to “Post Office Life Insurance Rules-2011” published on 28th April 2011 in the Gazette of India No. 85 (Part I, Section 1 Extraordinary):

55.     A policy other than an Anticipated Endowment Assurance, 10 Year Rural PLI and Children policy may be surrendered for an immediate payment in cash, provided the policy is of not less than three years duration. In such a case, the insured person or the assigns of the policy, as the case may be, shall give notice of surrender, in writing, to the P o st master Ge ner al concerned and forward the policy or a duplicate copy thereof or Indemnity bond (if policy is lost) at any Post office along with the premium receipt book, if premia had been paid in cash and loan repayment receipt book, if loan principal/interest is outstanding. The concerned Post Office will send all those documents to the Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) from where the same will be sent to the P o st master Ge ner al fo r ap p ro val . Further deductions on account of premium from the pay of the insured person shall cease on receipt of instructions of Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) issued after a p p ro val o f P o stma ster General . A policy surrendered under this rule shall continue to be in force till the end of the month in which the application for surrender is received by the P o st mas ter Gener al and accordingly the premium shall also be payable for the period for which the policy continues to be in force. For policies in respect of which premium is paid annually in advance, surrender value is to be calculated at the end of the year irrespective of the date of surrender but payment of surrender value may be made when the policy holder asks for it. No bonus will be paid in respect of a policy with effect from the date of discontinuance of premia. Proportionate bonus shall be paid on paid up value after completion of 5 years i.e. if a policy remains in force at least for 5 years.

55.    A policy other than an Anticipated Endowment Assurance, 10 Year Rural PLI and Children policy may be surrendered for an immediate payment in cash, provided the policy is of not less than three years duration. In such a case, the insured person or the assigns of the policy, as the case may be, shall give notice of surrender, in writing, to the Postmaster/Manager of Central Processing Centre (GPO/Head Office) concerned and forward the policy or a duplicate copy thereof or Indemnity bond (if policy is lost) at any Post office along with the premium receipt book, if premia had been paid in cash and loan repayment receipt book, if loan principal/interest is outstanding. The concerned Post Office will send all those documents to the Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) from where the same will be sent to the concerned approving authority for approval. Further deductions on account of premium from the pay of the insured person shall cease on receipt of instructions of Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) issued after approval of the concerned approving authority. A policy surrendered under this rule shall continue to be in force till the end of the month in which the application for surrender is received by the approving authority concerned and accordingly the premium shall also be payable for the period for which the policy continues to be in force. For policies in respect of which premium is paid annually in advance, surrender value is to be calculated at the end of the year irrespective of the date of surrender but payment of surrender value may be made when the policy holder asks for it. No bonus will be paid in respect of a policy with effect from the date of discontinuance of premia. Proportionate bonus shall be paid on paid up value after completion of 5 years i.e. if a policy remains in force at least for 5 years.

55.1 On receipt of the notice and the documents referred to in this rule, the Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) shall examine the title of the claimant and calculate the surrender value of the policy in accordance with the prescribed formula. The admissible surrender value of the policy should also be communicated to the claimant for sending his consent/dissent in writing regarding taking payment or not taking payment of the admissible surrender value of the policy intended to be surrendered. On receipt of consent of insurant from taking payment of admissible amount of surrender value communicated to him, Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) will send the case to Postmaster General for approval. After approval of Postmaster General, Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) will issue sanction for payment of admissible amount of surrender value to the concerned Postmaster under intimation to the claimant. The amount sanctioned shall be paid to the claimant on his surrendering the payee’s copy of the order at the Post Office and signing a receipt for it, duly stamped, where necessary, on the back of the order. In case of payment through cheque Rule as prescribed in 52(2) may be followed.

55.1 On receipt of the notice and the documents referred to in this rule, the Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) shall examine the title of the claimant and calculate the surrender value of the policy in accordance with the prescribed formula. The admissible surrender value of the policy should also be communicated to the claimant for sending his consent/dissent in writing regarding taking payment or not taking payment of the admissible surrender value of the policy intended to be surrendered. On receipt of consent of insurant for taking payment of admissible amount of surrender value communicated to him, Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) will  approve the case at his own level , if within his powers , or send the case to concerned approving authority for approval. After approval of the case by concerned approver, Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) will issue sanction for payment of admissible amount of surrender value to the concerned Postmaster under intimation to the claimant. The amount sanctioned shall be paid to the claimant on his surrendering the payee’s copy of the order at the Post Office and signing a receipt for it, duly stamped, where necessary, on the back of the order. In case of payment through cheque Rule as prescribed in 52(2) may be followed.

55.2 The Postmaster General may, in his discretion, allow withdrawal of an application for surrender at any time before the surrender value is actually paid to the applicant if sufficient reasons are adduced for such a withdrawal, and if the withdrawal would not adversely affect the interest of the Fund.”

55.2 Approving authority (as modified from time to time by executive order of CGM(PLI)) , in his discretion, may allow withdrawal of an application for surrender at any time before the surrender value is actually paid to the applicant if sufficient reasons are adduced for such a withdrawal, and if the withdrawal would not adversely affect the interest of the Fund.”

58.(1) The Postmaster General/ Head of Division/ Postmaster/ Manager of Central Processing Centre (GPO/ Head Office), may in his discretion, on receiving an application in the prescribed proforma allow a policy, which has become void in terms of Rule 56(1), or has ceased to be active in terms of Rule 57(1) and has not been re-instated under the provisions of Rule 56 (3) or 57(3), to be revived provided that the said policy has not attained the date of maturity and a period of consecutive 5(five) years has not passed from the date of first unpaid premium and the life assured is insurable at the time of revival. Such revival shall be subject to payment, within a date to be specified by the Postmaster General/ Head of Division/ Postmaster/ Manager of Central Processing Centre (GPO/ Head Office), of all arrears of premia with interest thereon at the rates prescribed by the Director General of Posts and calculated from the date the first unpaid premium in respect of such policy had become due and certificate from an authorized medical attendant in the prescribed proforma certifying that the life assured is insurable having regard to the insurants health and habits and of evidence to show that there has been no adverse change in his/her personal or family history or his/her occupation.

58.(1) Authority competent to accept proposal, may in his discretion, on receiving an application in the prescribed proforma allow a policy, which has become void in terms of Rule 56(1), or has ceased to be active in terms of Rule 57(1) and has not been re-instated under the provisions of Rule 56 (3) or 57(3), to be revived provided that the said policy has not attained the date of maturity and a period of consecutive 5(five) years has not passed from the date of first unpaid premium and the life assured is insurable at the time of revival. Such revival shall be subject to payment, within a date to be specified by the competent authority, of all arrears of premia with interest thereon at the rates prescribed by the Director General of Posts and calculated from the date the first unpaid premium in respect of such policy had become due and certificate from an authorized medical attendant in the prescribed proforma certifying that the life assured is insurable having regard to the insurants health and habits and of evidence to show that there has been no adverse change in his/her personal or family history or his/her occupation.

 

59(2) “…..A second or subsequent loan not exceeding the amount prescribed in sub-rule (1) of this rule may be granted on the security of a policy on which one loan has already been granted. The second or subsequent loan shall not, however, be granted until one year after the repayment of the previous loan*.

The Postmaster General may grant second or subsequent loan in exceptional circumstances.

59(2) “…..A second or subsequent loan not exceeding the amount prescribed in sub-rule (1) of this rule may be granted by Postmaster/Manager of CPC on the security of a policy on which one loan has already been granted. The second or subsequent loan shall not, however, be granted until full repayment of the previous loan”

Revised Limits of first & subsequent loan against PLI & RPLI policies:

Sl.No.	Designation	Existing Limit	Proposed revised Limits
1.	Postmaster of CPC of HOs/ GPOs	No limit	No limit.