In the year 1993 a special committee called the Malhotra Committee observed that insurance formed a very meagre percentage of India’s gross household savings. The numbers were exceptionally weak for people from the rural sector.
According to the committee, in the rural areas, post masters enjoyed a very trustworthy and friendly relationships with customers and hence this position could be successfully used in popularizing insurance in the nation.
With a strong network of post offices in urban as well as rural areas, rural postal life insurance was set to succeed. Also, the cost expected to be incurred for operations came down drastically because of use of existing network of post offices. Currently, RPLI is the only insurance provider in the country to give the highest returns to customers at the lowest premium amount. The RPLI scheme is aimed to provide insurance to individuals working in all government sector enterprises including military forces, government school employees, nationalized banks, local civic bodies etc. Also, employees working in the private sector too can
Rural Postal Life Insurance
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus Rural Postal Life Insurance (RPLI) was introduced in 24.03.1995 for rural people of India. The Malhotra 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 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, mainly because of the vast network 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 populationnec ullamcorper mattis, pulvinar dapibus leo.
Benefits of Rural Postal Life Insurance in India:
- Nominations can be changed.
- The policy can be assigned to a lender to avail a loan.
- A Duplicate Policy Bond will be issued in case the original policy is lost.
- In case the policy has lapsed, it can be revived.
- You can convert the policy to an Endowment Assurance from a Whole Life Assurance.
Insurance Schemes under Rural Postal Life Insurance:
A number of schemes are available for customers under the rural postal insurance drive. These schemes include those of pure insurance nature and those that are endowment plans. Customers can avail one or more of these insurance schemes and can also switch between schemes in case of dissatisfaction. Important features and benefits of these schemes are described in detail in the section below.
- Whole Life Assurance ( GRAMA SURAKSHA):
- Objective of the scheme: To pay the nominee a sum equal to assured sum plus accrued bonus in the event of death of the policyholder
- Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 55 years
- Conversion of Policy: Whole Life assurance policy can be converted to endowment policy after completion of 1 year of policy and before policyholder completes 59 years of age
- Minimum Sum assured: Rs.10,000
- Maximum Sum Assured: Rs.10 lakhs
- Loan Option: Yes. After completion of 4 years of policy
- Surrender of policy: Only after completion of 3 policy years
- Premiums Payable: Premiums vary with the sum assured, age of applicant etc.
- Convertible Whole Life Assurance (GRAMA SUVIDHA):
- Objective of the scheme: To pay the nominee a sum equal to assured sum plus accrued bonus in the event of death of the policyholder
- Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 50 years
- Conversion of Policy: Whole Life assurance policy can be converted to endowment policy after completion of 5 years of policy However, the policy cannot be converted after 6 years.
- Minimum Sum assured: Rs.10,000
- Maximum Sum Assured: Rs.10 lakhs
- Loan Option: Yes. After completion of 4 years of policy
- Surrender of policy: Only after completion of 3 policy years; bonus in case of surrender is nullified
- Premiums Payable: Premiums vary with the sum assured, age of applicant etc.
- Endowment Assurance ( GRAMA SANTOSH):This scheme is an endowment plan aimed to fulfill the insurance needs of policyholders.Following are some of the most striking features of this scheme.
- Objective of the scheme: To furnish sum assured plus all accrues bonuses to the nominee/assignee/heir until he/she attains the age of maturity on death of the policyholder
- Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 55 years
- Minimum Sum assured: Rs.10,000
- Maximum Sum Assured: Rs.10 lakhs
- Loan Option: Yes. After completion of 4 years of policy
- Surrender of policy: Only after completion of 3 policy years; bonus in case of surrender before 5 years is nullified
- Premiums Payable: Premiums vary with the sum assured, age of applicant etc.
- Anticipated Endowment Assurance (GRAMA SUMANGAL) :The Anticipated Endowment Assurance is a money-back policy which is best suited for customers who wish to avail certain amount of cash periodically to fulfil their short-term financial needs. Under this scheme, two types of policies are offered, one for a tenure of 15 years and another for a term of 20 years. For the former term, the benefits are paid at intervals of 6, 9, and 12 years while for the latter benefits are paid at intervals of 8, 12, and 16 years.
- Objective of the scheme: To furnish benefits to the policyholder periodically. In the event of death of the policyholder, only the sum assured and bonuses accrued will be paid and staggered payment in stages will cease
- Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 45 years
- Maximum Sum Assured: Rs.50 lakhs
- GRAM PRIYA (10 Year RPLI):This is an endowment scheme which is for a term of 10 years. Insurance cover begins from the date of purchase of policy.
- Objective of the scheme: To furnish benefits to the policyholder or his/her nominee on completion of policy term. The assurance is for sum assured plus bonuses accrued.
- Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 45 years
- Minimum Sum assured: Rs.10,000
- Maximum Sum Assured: Rs.10 lakhs
- Scheme for Physically handicapped persons:
- Objective of the scheme: In the event of death of the policyholder, only the sum assured and bonuses accrued will be paid. Medical examination is compulsory to avail this policy since the nature and extent of handicap needs to be assessed by the authorities.
- Eligibility Criteria: Minimum entry age is 19 years and maximum entry age is 55 years
- Minimum Sum assured: Depends upon the premiums paid
- Maximum Sum Assured: Depends upon the premiums paid
- Surrender of policy: Can be surrendered after completion of 3 policy years
- Loan Facility: Loans can be availed from various lending institutes by pledging the insurance policy
- Premiums Payable: Premiums vary with the sum assured, age of applicant etc.
Children Policy (Bal Jeevan Bima)
- Insurance cover is provided to the policyholder’s children.
- Children between the ages of 5 years and 20 years are eligible.
- Two children may be provided cover under the policy.
- The policyholder should not be more than 45 years old.
- Policyholders cannot surrender the policy.
- No medical examination is required.
FAQs
Can private sector workers avail insurance schemes under RPLI?
Yes. Private sector workers can apply for schemes under rural postal life insurance.
What do you mean by surrender value of a policy?
Surrender value means the sum that a customer stands to gain when he/she decides to discontinue premium payment and surrender his/her insurance policy
Practice area's of B K Goyal & Co LLP
Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Demand Notice | Psara License | FCRA Online
Most read resources
tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | GST Search Taxpayer | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | ec tamilnadu | aaple sarkar portal | epf activation | scrap business | brsr | depreciation on computer | west bengal land registration | traces portal | Directorate general of GST Intelligence | form 16 | rtps | patta chitta