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Postal Life Insurance (PLI)

Postal Life Insurance (PLI) is the oldest insurance company in India which was formed on 1st February, 1884 under British India. The insurance company was initially set for the welfare of postal employees.

It is the first insurance company to cover female employees of P & T Department in 1894.

The company has grown substantially from a few hundred policies in 1884 to 6.4 million policies as on 31.03.2015. The company enjoys a vast network spread across the country with around 1,55,669 branches making it India’s largest and also the most trusted retail and financial services provider. It was established with the objective of serving as a welfare scheme for its employees, later extending the same benefits to the employees of the Telegraph Department in the year 1888. It holds the prestigious accreditation of becoming the first life insurance company to provide a cover for females by offering coverage to female employees in 1894.

Interesting facts about Postal Life Insurance

  • The company was formed under British era on approval from Her Majesty, the Queen of England
  • After 4 years of formation the welfare scheme was extended to Telegraph department in 1888
  • PLI also covers officers and staff of the Defence services and Para-Military forces.
  • Postal Life Insurance manages a Group Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the Postal department services

  • As per 31st March 2017 records, Postal Life Insurance has sold more than 46 lakh policies.

Benefits of Postal Life Insurance

  • PLI is the only insurer which gives highest return (bonus) and charges lowest premium for any product in Indian Life Insurance market
  • You can avail loan facility for immediate liquidity requirements on PLI policies
  • Flexibility in terms of converting any whole life insurance to endowment insurance and endowment assurance to any other endowment assurance, as per the terms and conditions
  • In case original policy bond certificate is lost or destroyed, the company has the facility to issue duplicate bond certificate.

Life Insurance Plans Offered by Postal Life Insurance

Postal Life Insurance Statistics

YEARNO. OF POLICIES PROCURED DURING THE FINANCIAL YEARSUM ASSURED OF THESE POLICIES (IN RS. CRORE)NO. OF ACTIVE POLICIES AT THE END OF THE FINANCIAL YEARAGGREGATE SUM ASSURED (IN RS. CRORE)PREMIUM INCOME (IN RS. CRORE)FUND BALANCE (IN RS. CRORE)
2016-1721332311096.674680013113084.8 7233.8955,058.61
2015-161986069644.974930838109982.16657.0346,302.72
2014-1532402214276.91 5242257109106.95963.4639,536.33
2013-1443318216129.395406093102276.15352.0132,716.26
2012-1345405314695.59521932688896.464557.2926,131.34
2011-1248242313288.155006060 76591.333681.0323,010.55

Postal Life Insurance Eligibility Criteria

Plan NameMinimumMaximum
Whole Life Assurance (Suraksha)1955
Endowment Assurance (Santosh)1955
Convertible Whole Life Assurance (Suvidha)1950
Anticipated Endowment Assurance (Sumangal)1940/45
Joint Life Assurance (Yugal Suraksha)2145
Children Policy (Bal Jeevan Bima)520

Employees of the following organizations are eligible, as per 5th October 2018 records:

  • 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
  • Employees Engaged/ Appointed on Contract basis by central/ State Government where the contract is extendable
  • Employees of all scheduled Commercial Banks
  • Employees of Credit Co-operative Societies and other Co-operative Societies registered with Government under the Co-operative Societies Act and partly or fully funded from the Central/ State Government/RBI/ SBI/ Nationalized Banks/ NABARD and other such institutions notified by Government
  • Employees of deemed Universities i.e. an educational institutes accredited by recognized bodies such a National Assessment and Accreditation council, All India Council of Technical Education, Medical council of India etc.
  • Employees (teaching/non-teaching staff) of all private educational institutions/schools/colleges etc. affiliated to recognized Boards (recognized by Centre/State Government) of Secondary/Senior Secondary education i.e. CBSE, ICSE, State Boards, Open School, etc.
  • Professionals such as Doctors (including Doctors pursuing Post Graduate degree courses through any Govt/Private Hospitals, Residents Doctors employed on contract/permanent basis in any Govt./Private Hospitals etc.), Engineers (including Engineers pursuing Master’s/Post Graduate degree after having passed GATE entrance test), Management Consultants, Charted Accountants registered with Institute of Charted Accountants of India, Architects, Lawyers registered with Bar Council of India/States, Bankers working in Nationalised Banks and its Associate Banks, Foreign Banks, Regional Rural Banks, Scheduled Commercial Banks including Private Sector Banks etc.
  • Employees of listed companies of NSE (National Stock Exchange) and Bombay Stock Exchange (BSE) in IT, Banking & Finance, Healthcare/Pharma, Energy/Power, Telecom, and Infrastructure Sector etc., where employees are covered for Provident Fund/Gratuity and/or their leave records are maintained by the establishment.

What is Rural postal life insurance

Rural Postal Life Insurance (RPLI) scheme was started in the year 1995 for the benefit of a section of the population living in rural India. The main aim of the rural postal life insurance is to extend insurance coverage to the low-income groups and provide them financial security so that they can tackle adversities. The scheme was as a result of the recommendation of the Malhotra committee which passed on its recommendation to introduce reforms in the insurance sector for people living in rural areas.

Features of Rural Postal Life Insurance

RPLI offers affordable insurance solutions, especially to weaker or low-income groups of the society.

  • RPLI has successfully penetrated in the areas which are not very well connected to the developed parts of the country.
  • RPLI offers a wide variety of plans (6 types of policies) to cater to the different needs of the people in rural areas.
  • The issue of duplicate policy or bond if the original copy of the policy/scheme goes missing.

Benefits of Rural Postal Life Insurance

There are several benefits which are linked with the rural postal insurance schemes. A wide variety of different schemes are available under the scope of rural insurance. Some of the most useful advantages of these schemes are mentioned below-

  • The policyholders in rural postal insurance schemes can avail loan facility by pledging their policies as collateral for security. The loan facility can be availed only after the policy has completed 3 years or more in case of endowment plan and 4 years in case of whole life assurance.
  • The policyholder can also use the policy for taking a loan with any financial institution, provided it has gained surrender value.
  • The policyholder of RPLI can revive the policy if the policy has lapsed due to default in insurance premium payment.
  • The policyholders of the RPLI have the flexibility to convert the rural postal insurance policy from one scheme to another if they are not satisfied with the benefits or features of the scheme. This can be done in accordance with the rules set by the postal insurance department.
  • The policyholder of the RPLI has the flexibility to change the nomination on the policy document in the active term of the policy. The change of the nomination can be done by placing a request with the postal insurance department.

Rural Postal Life Insurance Statistics

YEARNO. OF POLICIES PROCURED DURING THE FINANCIAL YEARSUM ASSURED OF THESE POLICIES (IN RS. CRORE)NO. OF ACTIVE POLICIES AT THE END OF THE FINANCIAL YEARAGGREGATE SUM ASSURED (IN RS. CRORE)PREMIUM INCOME (IN RS. CRORE)FUND BALANCE (IN RS. CRORE)
2016-17375134 6850.451468409683983.472120.0220716.62
2015-162582252668.9 14915652 81733.732012.1718,113.78
2014-154773604652.35 1524538782822.26 1983.9515,771.55
2013-148714626712.391501431479466.451960.2413,352.01
2012-13 16347677413.17 14664650 75154.06 1703.1611,388.20
2011-1227148569088.991354735569754.171558.939,141.43

Eligibility Criteria for Rural Postal Life Insurance (RPLI)

Plan NameMinimumMaximum
Whole Life Assurance (Gram Suraksha)1955
Endowment Assurance (Gram Santosh)1955
Convertible Whole Life Assurance (Gram Suvidha)1950
Anticipated Endowment Assurance (Gram Sumangal)1940/45
10 Years Rural PLI (Gram Priya)2045
Children Policy (Bal Jeevan Bima)520

• The scheme shall cover all persons, male or female, who permanently reside in rural areas and are ordinarily residents in India to the exclusion of foreigners and non-resident Indians, provided they have attained majority.

Policy Details - Bonus Rates for PLI & RPLI

YearPLI RPLI
Bonus per Rs. 1,000 annuallyBonus per Rs. 1,000 annually
EAWLAAEA EAWLAAEA
31st March 2016588553506547
31st March 2015588553506547
31st March 2014588553506547
31st March 2013588553506547
31st March 2012588553506547
31st March 2011608555506547
31st March 2010608555506547

Postal Life Insurance Claim Settlement Details

The insured can register a claim with the concerned Customer Processing Centre (CPC) by visiting it along with essential documents like original policy document, loan repayment record (if any) and receipt book for premium payments. These documents will be thoroughly examined for verifying their authenticity, and a decision regarding their approval or rejection will be taken accordingly. If the claim is approved, the payment will be made through the Post Office.

Additional benefits include:

  • Revival of lapsed policy
  • Issuance of duplicate policy document
  • Alternation of nominee
  • Conversion of Whole Life Assurance to Endowment Assurance, and of Endowment Assurance to any other Endowment Assurance
  • Assigning policy to any financial institute for loan

Review of Postal Life Insurance Company

Postal Life Insurance has been in existence from the 18th century. The plans are exclusive to public sector employees. The offerings from the company are simple to understand and offer the best returns in the market. The company has a wide network throughout the country and is amongst the most trusted Life Insurance companies in India.

Postal Life Insurance Contact Details

The Headquarter of Postal Life Insurance

Directorate of Postal Life Insurance

Chanakyapuri P.O. Complex, 1st Floor,

New Delhi – 110 021.

Toll Free Number: 18001805232

Ph: 011-24673177

FAX: 011-24100358, 26876809

Email ID: pli.dte@gmail.com

FAQ of Postal Life Insurance

How to check your Postal Life Insurance Status Online?

If you have subscribed to a Postal Life Insurance Policy, simply visit the official website of India Post and create an online account. Once you have successfully registered with a User ID and Password, you can login and check the status of your Postal Life Insurance Plan through the portal.

Is PLI better than LIC?

Every life insurance plan from both these companies are designed to cater to unique needs of individuals. You can compare between all the plans and take a conscious decision on the one that meets your objectives.

Is Postal Life Insurance covered under 80C?

Yes, premiums paid towards PLI are tax exempted as per Section 80C of the Income Tax Act, 1961.

Does PLI offer online payment facility?

Yes, you can make your premium payments towards PLI online through the official website of India Post.

Is Postal Life Insurance maturity amount taxable?

No, the maturity amount will be taxable only if the sum assured in less than the prescribed limit.

Is PLI guaranteed? If yes, who guarantees it?

Yes, Postal Life Insurance is guaranteed by the Government of India.

Does PLI continue to exist even after one quits his/her government job?

Yes, a Postal Life Insurance will continue to exist even after the policyholder quits his/her job, provided he/she continues to pay the premiums.

Does PLI offer loans?

Yes, Postal Life Insurance plans offer loan facility after the completion of 3 to 4 years of the policy term, depending on the policy.

Can a person residing in urban centre avail this scheme under RPLI?

No, RPLI scheme is only for persons who come within the boundaries of the area classified as a rural area.

How do I obtain an insurance scheme under rural postal insurance?

The person will need to visit the nearest post office for obtaining forms and other details to enrol under rural postal life insurance schemes.

What is the maximum amount that can be availed under the insurance schemes of RPLI?

The maximum sum assured amount for insurance schemes under RPLI is INR 10 lakhs

Is medical examination necessary for all schemes under Rural Postal Life Insurance?

A medical test is necessary for all schemes. The scheme in which medical test is not required the maximum sum assured allowed is INR 25,000

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