Friday, September 6, 2013

Eligibility for obtaining a Postal Life Insurance policy


Postal Life Insurance (PLI) was introduced on 1st February 1884 with the express approval of the Secretary of State (for India) to Her Majesty, the Queen Empress of India. It was essentially a scheme of State Insurance mooted by the then Director General of Post Offices, Mr. F.R. Hogg in 1881 as a welfare scheme for the benefit of Postal employees and later extended to the employees of Telegraph department in 1888. In 1894, PLI extended insurance cover to female employees of P & T Department at a time when no other insurance company covered female lives. It is the oldest Life insurer in this country.

In the beginning, the upper limit of life insurance was only Rs 4000/- which has now increased to Rs 10 lacs (Rupees Ten Lacs) for all schemes combined – Endowment Assurance and Whole Life Assurance. Over the years, PLI has grown substantially from a few hundred policies in 1884 to 42,83,302 policies as on 31.03.2010. It now covers employees of Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies etc. PLI also extends the facility of insurance to the officers and staff of the Defence services and Para-Military forces. Apart from single insurance policies, Postal Life Insurance also manages a Group Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the Department of Posts.

PLI is an exempted insurer under Section 118 (c) of the Insurance Act of 1938. It is also exempted under Section 44 (d) of LIC Act, 1956.

Who are eligible for obtaining a Postal Life Insurance (PLI) policy?
Employees  of the following Organizations are eligible.

  • Central Government
  • Defence Services
  • Para Military forces
  • State Government
  • Local Bodies
  • Government-aided Educational Institutions
  • Reserve Bank of India
  • Public Sector Undertakings
  • Financial Institutions
  • Nationalized Banks
  • Autonomous Bodies
  • Extra Departmental Agents in Department of Posts

Whether salaried professionals in Private Sector can join PLI?

Such categories are not eligible. They can opt for RPLI policies.

If one spouse is working in a Government organization  but the other is not, is there any scheme in PLI for both?

We have ‘Yugal Suraksha’ scheme under which both can jointly get a policy, after paying a little more premium. Both can be covered under this assurance scheme.

Can one continue the policy if one quits the Government Service?

Yes. One can continue by making payment of premium at any one of the 1,55,000 post offices throughout the country, even after quitting service.

For Rural Postal Life Insurance any Indian  residing in Rural India can take RPLI.  Rural area is defined as one being outside the limits of a municipality.

Age Limit: In all policies the age limit is (age as on next birthday):19-55 years. Only in AEA and GRAM Priya in RPLI the maximum age limit is 40 years.

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