⁸[Sl. No.

Limit of Sum Assured

Status of Medical Officer

(a)

For Insurance up to ` 5 lakh.

(i) Assistant Civil Surgeon or above/Medical officer in PHC.

(ii) Medical officer equivalent to Assistant Civil Surgeon or above employed in Central and State Government, Municipal District Board, Local Board, Cantonment Board or Union Board Hospital or dispensaries and also Medical officers of units of Public Sector undertakings, both State and Central, nearest to the place of duty/residence of the proponents.

(iii) Retired Medical Officers (Gr. II).

(b)

For Insurance above ` 5 lakh and upto ` 10 lakh

(i) Dy. Civil Surgeon or above

(ii) Medical officer equivalent to Dy. Civil Surgeon or above employed in Central and State Government, Municipal District Board, Local Board, Cantonment Board or Union Board Hospital or dispensaries and also Medical officers of units of Public Sector undertakings both State and Centre with at least 10 (ten) years experience, nearest to the place of duty of the proponents.

(iii) Retired Medical Officers (Gr. I).

(c)

For insurance in excess ` 10 lakh

(i) Civil Surgeon, Medical Officers in the employment of Government enjoying the status not lower than that of a Civil Surgeon or Chief Medical officer, nearest to the place of duty of the proponent. CMO Grade-I/Specialist Grade-II shall also be considered as equivalent to the rank of Civil Surgeon,

(ii) Medical Officer (Allopathic) equivalent to Civil Surgeon employed in Central and State Government, Municipal District Board, Local Board, Cantonment Board or Union Board Hospital or dispensaries and also Medical officers of units of Public Sector undertaking both State and Centre with at least 15 (fifteen) years experience, nearest to the place of the duty of the proponent.

(iii) Retired Civil Surgeon, CMO Gr. -I and Specialist Grade-II.]

"S. No.

Limit of Sum Assured

Status of Medical Officer

(a)

For Insurance up to and including Rs. 5 lac.

(i) Medical officer below the status of Civil Surgeon employed in Central and State Government, Municipal District Board, Local Board, Cantonment Board or Union Board Hospital or dispensaries and also Medical officers of units of Public Sector undertakings, both State and Central, nearest to the place of duty of the proponents.

(ii) Retired Medical Officers (Gr. II).

(b)

For insurance in excess of Rs. 5 lac

(i) Medical Officer (Allopathic) working in the Primary Health Centers having a minimum experience of 5 (five) years in Government service.

(ii) Medical Officer (Allopathic) employed in Central and State Government, Municipal District Board, Local Board, Cantonment Board or Union Board Hospital or dispensaries and also Medical officers of units of Public Sector undertaking both State and Centre with at least 10 (ten) years experience, nearest to the place of the duty of the proponent.

 (iii) Civil Surgeon, Medical Officers in the employment of Government enjoying the status not lower than that of a Civil Surgeon or Chief Medical officer, nearest to the place of duty of the proponent. CMO Grade-I/Specialist Class-II shall also be considered as equivalent to the rank of Civil Surgeon.

(iv) Retired Civil Surgeon, CMO Gr. -I and Specialist Class-II."

The Postmaster General may also appoint the Registered Medical Practitioners (Allopathic) to conduct medical examination of PLI and RPLI proponent up to the sum assured of Rs five lacs (Rs 5 lacs) subject to the following conditions:-

(i) The RMPs (allopathic) will be authorized only when Government Doctors are not available in particular areas or if available, decline to undertake medical examination;

(ii) The RMPs so authorized should have at least MBBS degree and registered with Medical Council of India in the State;

(iii) The RMPs should have experience of at least five years after possessing MBBS degree;

(iv) The RMPs should be a person of repute having good professional conduct and character;

(v) The fees prescribed for Government Medical Officers for examining the proponents under PLI/RPLI will be payable to an RMP;

(vi) On authorization, such RMPs will be called as 'Authorised RMP' in PLI/RPLI term.

(vii) In order to examine the cases of recommending bad lives by Registered Medical Practitioners and consequential premature Death claims within three years from the date of acceptance, a proper record of RMPs (Full name, permanent address, name of clinic, date of authorization, Policy No in respect of which premature death claim was received with sum assured and cause of death etc.) should be kept by the Postmaster General for review of authorization after two years. Any adverse report should be taken notice of for his decision.

The Medical officer concerned will receive a fee for each medical examination at the prescribed rates fixed by the Department from time to time.

The Postmaster General/Head of Division/Accepting Authority as authorized by the department will decide whether the proposal is to be accepted or not after satisfying himself on the basis of parameters fixed viz. eligibility, limit of sum assured, Medical Examination report, completion of columns of proposal forms, documents in respect of date of birth, service documents (in respect of PLI), particulars of immediate superior or marketing staff, declaration of proponent and also that the proposer's signature/thumb impression made before the Medical Officer agrees with that made before the immediate superior/marketing staff (in respect of RPLI). If he decides that the proposal should be accepted, he will intimate to the proposer the acceptance of his proposal and furnish him with the instructions as to the amount of subsequent premia to be deposited by him in cash at the specified Post Office by the due dates in case of cash policy. A copy of the above intimation (acceptance letter) shall also be sent to the Drawing and Disbursing Officer(DDO)/Pay Account Officer (PAO) of the proposer for deduction of monthly premium from the pay of the proposer, in case of pay policy. Postmaster General /Head of Division/Accepting Authority shall accept the proposals up to the Sum Assured as may be decided by the Department from time to time.

⁶[Note:- Head of Division/Accepting Authority may accept proposals upto the limit of sum assured as prescribed by Director General of Posts from time to time.]

6. Inserted vide Notification No. 25-1/2011-LI dated 18.10.2012.

When a proposal is not accepted after the proposer has been medically examined, within sixty days, a second medical certificate shall be obtained and the fee thereof shall be paid by the proposer if he is responsible for the delay, otherwise it shall be paid out of the Insurance Fund.

If a fact regarding serious illness of the proposer or death occurring due to any serious disease in the family of the proposer after medical examination of the proposer comes to the light of the Postmaster General/Head of Division/ Accepting Authority before acceptance of proposal, a fresh medical examination may be ordered at the cost of the Fund.

Note: The proposer is responsible to intimate such facts to the accepting authority in time.

After acceptance of the proposal, the Postmaster General/ Head of Division/ Accepting Authority shall simultaneously issue acceptance letter, policy document, and premium receipt book (for cash policy only). Policy document shall be signed by the Postmaster General/ Head of Division / Accepting Authority on behalf of the President of India. All these documents shall be dispatched to the proposer by registered post with acknowledgement due.

For policy documents up to the sum assured of Rs 25,000/- in Rural PLI, facsimile signatures shall be affixed on policy document.

An insured person who adopts the mode of paying premium in cash as a regular measure will be supplied by the Department with a premium receipt book in which entries relating to payment of each premium shall be made. The Postmaster receiving the monthly premiums will grant a receipt for the amount in this book. When the Book is filled up and has no further space for entries, it should be forwarded to the Postmaster General/ Head of Division /Postmaster of Head Post Office including G.P.O who after verifying the entries will arrange to issue a new Book in which it will be noted, under his signature, the month up to which premia have been paid.

In the event of a premium receipt book being lost, the insured person should apply, through the nearest Post Office (Head or Sub or Branch), to the Postmaster General/ Head of Division for a duplicate premium receipt book stating in his application the circumstances under which the original book was lost along with the prescribed fee in form ACG-67 or computerized receipt. The Postmaster General/ Head of Division will then issue a duplicate book and send it to the Post Office concerned for delivery to the insured person. The postmaster shall charge the amount towards PLI/RPLI receipt. The Postmaster General/ Head of Division may, however, if he is satisfied that the original book was lost through no fault of the insured person, issue duplicate book without any fee for the purpose.

Any person, who has purchased any insurance/assurance policy, may insure/may effect further assurance for additional sum assured subject to the limitation specified in Rule 7(Rule 9 in case of RPLI). In such cases he should submit a proposal in prescribed form. The insured person will also have to undergo medical examination by the prescribed Medical Officer depending upon the aggregate sum assured of all the policies held by him including the fresh proposal applied for.

Exception: - A proposer who desires within 60 days from the date of his medical examination made in connection with a proposal for insurance to increase the amount of his original proposal or to purchase a fresh policy to mature at the same age or an earlier age will not be required to submit a fresh proposal in the prescribed form or to undergo a second medical examination if the original medical examination was conducted by a Medical Officer competent under Rule 24 to examine the proposer for the revised amount, otherwise second medical examination shall be carried out. If however, the proposal for additional benefits is not accepted within two months from the date of medical examination a further medical certificate should be obtained and the fee thereof should be paid by the proposer if he is responsible for the delay; otherwise the fee should be paid out of the Post Office Life Insurance Fund/ RPOLIF. The additional premium thus due to the increase in the value of the policy or to the purchase of a fresh policy shall be communicated to the insured and the request for increase in policy value or to the purchase of fresh policy shall be accepted only after deposit of the amount in the Post Office and the receipt for the same shall be sent to the Postmaster General/Head of Division/ Accepting Authority.

A life insurance contract will be held to commence from the date borne on the policy (date of acceptance) or written document in which the contract is recorded; and the policy will be given to the person insured for custody.

The Defence, Assam Rifles and Para Military Forces personnel who are in Medical Category "AYE" (for JCOs/NCOs/OR or equivalent) or "SHAPE" -I (for officers), while submitting proposal for taking a Postal Life Insurance Policy will be exempted from Medical Examination for the purpose. Separate proposal form will be used for taking a policy by these personnel. Full claims for sum assured along with the vested bonus will be admissible to the claimant(s) if a policy becomes claim after its acceptance. Suicide cases will however be governed by the existing Post Office Life Insurance Rules 2011.

(1) In registering any assignment, nomination or appointment of any person to receive the money secured by policy in the event of the insurants' death during the minority of the nominee, the Post Office Life Insurance Fund/RPOLIF assumes no responsibility as to the validity thereof.

(2) The Fund does not prescribe any particular forms for assignment or for nomination, or for the notice thereof, and an application on plain paper can also be used for the purpose.

(3) Policies may be assigned by the policy holder, either:-

(i) for valuable consideration; or

(ii) by way of gift.

4. The assignment may be made either by an endorsement on the reverse of the policy itself or by a separate deed. The assignment must be dated and signed by the assignor in the presence of a witness. Except in the case of an assignment in favour of the President of India as a security for the repayment of any loan granted out of the Fund, an assignment, otherwise complete, will be inoperative against the Fund, unless a notice in writing of the assignment has been delivered to the Postmaster General/ Head of Division.

The notice of assignment must be accompanied by the policy duly endorsed or, where the assignment has been effected by a separate deed, by the deed or assignment or a copy thereof duly certified to be correct by both the assigner and the assigns or their duly authorized agents. The priority of claim under a policy will be governed by the dates on which the notices of the assignments have been received by the Postmaster General/ Head of Division at his office.

5. After the assignment of a policy is once effected, the policy cannot be dealt with any further by the assignor and the only person competent to deal with it will be the assigns. In order to enable the policy-holder to deal with the policy again he should have a re-assignment in writing in his own favour executed by the assigns, attested by one or more witnesses, and registered in the records of the Postmaster General/ Head of Division.

(6) Nomination

(a) A policy holder is advised to nominate a person or a trust to whom the sum assured shall become payable in the event of his death, so as to save his legal heirs the trouble and expense of obtaining legal title to the sums payable under the policy.

(i) Provided that if any of the legal heir(s) or the nominee(s)/trustee of a policy holder has been charged with the murder of the policy holder, the policy money shall not be paid to him/her unless he/she is honorably acquitted of by the competent court of law.

(b) The holder of a policy of life assurance on his own life may when effecting or at any time before the policy matures for payment nominate the person or persons or religious trust to whom the money secured by the policy is desired to be paid in the event of his death.

(c) Where the proposer gives the name of the intended nominee or nominees in the proposal form itself, the Fund will incorporate the name of such nominee or nominees in the text of the policy. A nomination, if not incorporated can be made only by an endorsement on the policy. In order to be effective, such endorsement must be communicated to the Postmaster General/ Head of Division for records. A nomination may, at any time before the policy matures for payment, be cancelled or changed by the assured by an endorsement or a further endorsement or a will, as the case may be, but the Fund will not be liable for any payment under the policy made bonafide by it to a nominee mentioned in the text of the policy or to be one nominated by an endorsement on the policy and registered in the records of the Fund unless notice in writing of any such cancellation or change has been received by the Postmaster General/ Head of Division prior to such payment.

(d) A transfer or assignment of a policy made in accordance with the provision of section 38 of the Insurance Act, 1938 shall automatically cancel a nomination (Section 39 (4)), provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its re-assignment by the insurer or repayment of the loan shall not have the effect of canceling a nomination, but shall affect the rights of the nominee only to the extent of the insurer's interest in the policy.

(e) Where the policy matures for payment during the life time of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives of the holder of a succession certificate as the case may be.

(f) Where the nominee or, if there are more nominees than one, a nominee or nominees survive the person whose life is insured the amount secured by the policy shall be payable to such survivor or survivors.

(g) Minor Nominee: - The holder of a policy of life insurance may, in any case where the nominee is a minor, appoint any person to receive the money secured by the policy in the event of his death during the minority of the nominee and communicate such appointment to the Postmaster General/Head of Division by forwarding the documents relating to such appointment. The consent of the appointee should be obtained at the same time as the appointment is made.

(h) Nominations as above are not permissible in the case of policy effected by any married man on his own life and expressed on the face of it to be for the benefit of his wife, or of his wife and children or any of them; in such a case the policy ensures and is deemed to be a trust for the benefit of the insurant's wife or for the benefit of his wife and children or any of them according to the interest so expressed (vide Section 6 of the Married Women's Property Act, 1874).

Provided that the said section 6 shall be deemed not to apply or not to have applied to a policy where the nomination made at any time in favour of the insurant's wife and children or any of them is expressed, whether or not on the face of the policy, as being under section 39 of the Insurance Act, 1938.

NOTE 1: - Assignment of policies made in compliance with Rule 21 (viii) (a) of the General Provident Fund Rules, which in essence, is an assignment for valuable consideration, should also be registered in the office of the Postmaster General/ Head of Division under this rule.

NOTE 2: - Assignment of policy as a whole may be made either in favour of one person or jointly in favour of two or more persons.

NOTE 3: - In the case of an absolute assignment, all rights of the assured are vested in the assigns by an assignment and the assigns may therefore be entitled to claim the surrender value of the policy under Rule 55 without the consent of assured.

NOTE 4: - A policy may be assigned to the President of India for the purpose of paying estate duty payable under the Estate Duty Act, 1953 (34 of 1953) in the form prescribed in Rule 31 of the Estate Duty Rules, 1953. When such a policy matures or is surrendered, the value of the policy or the amount of surrendered value thereof, as the case may be, shall be paid in the manner prescribed in the form of assignment. If the estate duty payable on the estate of assured is less than the policy money receivable under an insurance policy assigned to the President of India under rule 31 of the Estate Duty Rules, 1953, the Postmaster General/ Head of Division, will arrange to pay to the Government so much thereof as may be demanded by the Government for satisfaction of the estate duty liability on the estate of the assured and pay the balance to the legal heirs, executors, administrators or other legal representatives or assigns of the deceased or other persons to whom the same may be payable under the policy.

When an insurance policy is assigned to the President of India for the purpose of paying estate duty, the assured shall within three months of the date of registration of the assignment by the Postmaster General/ Head of Division deposit the policy with the Commissioner of Income Tax (who is also the Controller of Estate Duty) within whose jurisdiction the assured resides. In the case of a policy assigned to the President of India for the purpose of paying estate duty, the assured shall surrender to the Controller of Estate Duty all former deeds of assignments or re-assignments, if any, in respect of the policy.

Note 5: A nominee under a policy of the life insurance has a bare right to collect the money payable under the policy on the death of the insured and give a good discharge to the insurer. The nominee does not become the owner of the money payable under the policy and he/she is liable to make it over to the legal representative of the insured. Thus the nominee acts as a receiver only, subject to the provision of these Rules.

A person who has once been admitted to the benefits of the Post office Life Insurance Fund shall not forfeit his right or interest in any life insurance policy purchased by him under these rules by reason of his quitting the service in which he is employed, from any cause whatsoever except that referred to in Rule 39, provided that all payments due under the rules are regularly made.

All persons who are admitted to the benefits of the Post Office Life Insurance Fund / Rural Post Office Life Insurance Fund have government security for the payment, at the proper time, of the money due to them.

¹[Wrong information furnished by a person or suppression of factual information by a person admitted to the benefits of the Post Office Life Insurance Fund/Rural Post Office Life Insurance Fund will, at the discretion of the Approving Authority, render voidable the contract concluded with that person and lead to forfeiture of all payment made in the respective insurance policy, if the insurance policy becomes claim before completion of 3 (three) years from the date of acceptance of policy or revival of policy whichever is later.]

1. Substituted vide Notification No. 25-5/2020-LI, dated 07.09.2020, for the following:-

"Wrong information furnished by a person or suppression of factual information by a person admitted to the benefits of the Post Office Life Insurance Fund/Rural Post Office Life Insurance Fund will, at the discretion of the Postmaster General, render voidable the contract concluded with that person and lead to forfeiture of all payment made by him."

Government officials are prohibited from making public any information of a private character obtained in the course of business regarding the Post Office Life Insurance Fund/ Rural Post Office Life Insurance Fund or any transactions relating thereto. The official violating the rule shall be liable to suitable disciplinary action against him.

Policies of PLI/RPLI granted in accordance with these rules are exempted from stamp duty (Government of India, Finance and Commerce Department, Notification No. 5199 SR an 1390 SR dated the 1st November-1895 and the 22nd March 1898 respectively issued under section 8 of the Indian Stamp Act, 1879).

The accounts of Post Office Life Insurance Fund/ Rural Post Office Life Insurance Fund will be kept in the office of the Director, Postal Life Insurance, Kolkata.

NOTE: - (The procedure to be followed in connection with proposal submitted by Defence Services Personnel is given in the appendix to these rules.)

Premium is due on the first day of the month.

The first premium paid on any date shall represent the premium for that calendar month. The first premium must always be paid in cash or cheque by the proposer. In respect of 'pay recovery policies', the premium for a particular month shall be deducted from insurant's salary of the same month but not later than the last day of the said month except in the case of the month of March, where the salary is payable on 1st working day of April. The insured person is responsible that the amount of the premium, which is due on the first day of each month, shall be deducted from his pay for the said month. If the premium due for any month is not deducted due to any reason from the pay drawn, the insured person should pay the premium in cash for that month and inform the fact to Pay and Accounts Officer/Drawing and Disbursing Officer. In case of such policies, where it is found that an extra premium has been received as result of switching over from 'Pay recovery' to 'Cash recovery' and vice versa, such premium shall be refunded at the time of maturity/settlement of claim. And if the premium is to be paid in cash the insured person must ⁹[pay the premium at any post office or make online payment of premium on the authorised website of Department of Posts] either on the first day of the month for which the premium is due, or during the period of grace, which shall extend up to the last day of the calendar month for which the premium is due, or the day before the last day if the last day of the month falls on Sunday or postal holiday, and obtain the Postmaster's receipt for it in his premium receipt book. Payment of premia by insured person who has quit the service of Government is governed by Rule 49. The insured person may pay premium for his/her policy for any number of months at one time in cash in a post office, provided the premia are paid strictly in advance.

Exception: Under special arrangements existing in Tamilnadu, the deductions on account of premium from the pay bills of establishments employed in certain commercial undertakings of Government whose accounts are maintained on a commercial system, are made at the time of disbursement and cash for the total amount recovered is remitted to the treasury. Such deductions will be treated in the same manner as if they had been made by short drawals in the bill encashed at the treasury.

9. Substituted vide Notification No. 25-1/2011-LI dated 18.10.2012 for the following : - "pay the premium at the post office selected by him"

In case of pay recovery policy, when an insured person proceeds on leave in India or is under suspension, he/she must arrange payment of premia in cash at any post office ¹⁰[***] or he/she may, if so desires, pay the premia by deduction from his/her leave salary or suspension allowances drawn. When the insured person is on Foreign Service in India or proceeds on leave out of India, he may arrange payment of premia in cash at any Indian post office he/she may select so. Whenever the payment of premia is made in cash at post office the fact should be intimated to Postmaster concerned. However, when an insured person is on leave out of India, he/she will not be considered as in arrears of premia for any month so long as long he/she has not been able to draw any pay and allowances, though due for the month, due to circumstances beyond his/her control. If the pay and allowances are drawn subsequently without deduction of premia, the premia should be paid within a week positively.

10. Omitted vide Notification No. 25-1/2011-LI dated 18.10.2012 for the following : - "so selected"

When a policy has been assigned by the insured person to any other person, the insured person may arrange with the assigns that all the premium shall be paid from time to time by the latter, and the assigns will, with the concurrence of the Postmaster General/Head of Division, ¹²[pay in cash the monthly premium at any post office] If the premium is not paid on or before the last working day of the month (in case of March-1st working day of April) in which it is due, the provision of Rule 56 or the Rule 57, as the case may be, will apply.

12. Substituted vide Notification No. 25-1/2011-LI dated 18.10.2012 for the following : - "pay in cash the monthly premium to the Postmaster selected by him for the purpose."

The Pay and Accounts Office/Drawing and Disbursing Officer of each Department will furnish to the Director PLI, Kolkata with monthly statements in the prescribed form showing all payments of premium realized by deduction from the pay of person belonging to his Department and will give credit for the total amount of such realizations in his exchange (or Central Adjusting Account) with the concerned branch audit officer of the Department of Posts with whom he is in account.

When an insured person is transferred from one establishment to another, the premium recoverable from him should be recorded in his last pay certificate with a view to the necessary deduction being made from his pay at the new office. The disbursing officer of the insured person should inform the Drawing and Disbursing Officer of the office where the insured person is transferred, and the insured person himself must give such notice to the Postmaster General/Head of the Division.

Policies held by persons who have left the Government Service. - If an insured person resigns or retires or is dismissed from the service of Government, his policy holds good so long as the premium due are regularly paid by him on the first day of the month or ¹³[within the period of grace at any Post office or make online payment of premium on the authorised website of Department of Posts]. As soon as the connection of the insured person ceases with the Government, he should apply to the Postmaster General/Head of Division for a Premium Receipt Book informing him of the name of the Post Office at which the 1st premium, while in Government service, was deducted and the Post office at which he desires to pay future premium in cash. A copy of this application should also be endorsed to the Postmaster of the place at which future payments of premiums are desired to be made in cash. If the Premium Receipt Book is not received by the time the next premium after his quitting government service falls due, he should pay the amount by the due date in cash at the selected Post office producing a certificate from his last Disbursing Officer in the form appended at the end of this rule. In such a case, the concerned Postmaster would grant a receipt for the amount in from ACG-67. Subsequent premium will be paid in cash on production of the receipt for the previous month's premium, till the Premium Receipt Book is received by him. Thereafter, the due premium shall be paid on production of the Premium Receipt Book and receipt for the amount will then be given only in the Premium Receipt Book.

FORM

Ministry of ---------------------------

Government of ----------------------- /Department of ---------------------------------------------

Office of ---------------------------------

Certificate of the Disbursing Officer regarding premium deduction on account of PLI

Certified that a sum of Rs. ------------------ (in words also) being the amount of premium/premia on PLI policy/policies No. ------------------ dated ------------------ of Shri ----------------------------------- (with office address) for the month (s) (Name's of month's with year) was last deducted from the salary for the month(s) of (name of month(s) with year), paid on ---

------------- (office seal)

Signature

(With full name in Block capitals &

Designation of Disbursing officer)

13. Substituted vide Notification No. 25-1/2011-LI dated 18.10.2012 for the following : - "within the period of grace at the Post office selected by him"

If the purchaser of a PLI / RPLI policy leaves India, he must arrange with the Postmaster General/Head of Division/DDO for the payment at any Indian Post Office which he may select of the premia payable on his policy. If the insured person dies out of India, the value of his policy will be paid to the nominee(s)/legal heir(s). The payment shall be made by the Postmaster General / Head of Division by means of an account payee crossed cheque, "Not negotiable".

(1) A policy holder holding a policy other than an Anticipated Endowment Assurance and 10 Year Rural PLI policy may at any time apply for reduction of his monthly premium and sum assured without altering the class of his policy, or after payment of premia for not less than three years he may apply to have his policy made paid -up for a reduced sum assured free from further payment of premium. The paid up value of any policy will be the amount bearing to the total sum assured the same proportion as the total period for which premia have been paid bears to the maximum period for which premia were originally payable. Paid Up policies will not attract bonus with effect from the date of discontinuance of premia. Proportionate bonus shall however be paid on paid up value after completion of 5 years i.e. if a policy remains in force at least for 5 years.

Exception: the above Rule regarding the amount of the paid up policy does not apply to the following cases: -

(i) Where there are arrears of premiums, and

(ii) Where there is any outstanding loan or interest due.

(2) Commutation of future premiums by payment of a lump sum may be permitted at any time.

(3) In the case of policies other than Anticipated Endowment Assurance policies and 10 Year Rural PLI, conversions involving alteration of policy terms other than reduction, discontinuance or commutation of premia referred to above will be allowed only after payment of premia for an integral number of years and in any case where it is intended to extend the premium term or to defer the maturity date, on the production of a medical certificate of good health at the expense of the assured. Such conversions will be permitted only once on the duration of each policy without a fee. Second and subsequent conversions shall be subject to a small fee not exceeding Rs. 20/- or as may be fixed by the Department, in each case.

(4) No alteration from Anticipated Endowment Assurance and 10 Year Rural PLI policy to other classes of policies or vice-versa, or alterations in the selected term or in the sum assured of the Anticipated Endowment Assurance policy and 10 Year Rural PLI policy will be allowed.

(5) No such conversion of a policy as would put the date of maturity or of cessation of premium to a date preceding or within one year from the date of conversion is admissible.

(1)     (a) An insured person claiming maturity value of the policy shall be required to fill up and sign an application in the prescribed form available at any Divisional Office/Head or Sub Post Office or Branch Post Office, and forward it to the Postmaster General/Head of Division direct or through Divisional Office/Head or Sub Post Office or Branch Post Office with the documents prescribed by the Department.

(b) In case of claim arising due to death of the insured, the claimant shall fill and sign the application in the prescribed form available at any Divisional Office/Head or Sub Post Office or Branch Post Office, and forward it to the Postmaster General direct or through Divisional Office/Head or Sub Post Office or Branch Post Office with the death certificate and other documents as prescribed by the Department from time to time.

(c) For claiming the amount of survival benefit i.e. periodical payments in AEA and 10 Year RPLI policy, the insured person is required to fill up and sign an application in the prescribed form available at any Divisional Office/Head or Sub Post Office or Branch Post Office and forward it to the Postmaster General/ Head of Division direct or through Divisional Office/Head or Sub Post Office or Branch Post Office with the documents as prescribed by the Department from time to time.

(d) If the prescribed form for the claims in paras (a), (b) and (c) above is not available the claim may be preferred by an application on plain paper.

(2) On receipt of the application and the documents, Postmaster General/ Head of Division shall examine the title of the claimant and if the claim is found admissible, shall issue an order for payment of the sum assured or the periodical survival benefit, as the case may be, under the policy less the amount, if any, due on account of the premium in arrears and interest thereon. If the premium for any month remained unpaid on the last working day of the month (in case of March it is1st April), the provisions of Rule 56 or 57, as the case may be, will apply. The orders for payment of the amount of maturity value, death claim or survival benefit shall be issued 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 (on the Postmaster's copy if the payees copy is lost and an endorsement shall be made to this effect duly signed by the payee with witness) of the order at the Post Office and signing a receipt for it, duly stamped, where necessary, on the back of the order. The Department accepts no responsibility whatsoever for delays which may occur in the settlement of the claims. Claimants are, therefore, strongly advised to submit their claims sufficiently in advance of the date of maturity of the policies together with proof of payment of premium for the last six months prior to the date of last installment of premium in the shape of Disbursing Officer's Certificate, viz. a certificate of recovery by the officer disbursing his pay & allowances. If the payment is made through cheque then the dispatch particulars along with the details of cheque shall be noted on the Postmaster's copy of sanction.

Exception :- If, however, it is established that the delay in the payment of claims was attributable to administrative delays, ex-gratia payment of interest at the rate of 8% per annum on the unsettled amount of claim shall be paid for the delay beyond this period stated as under:

(i) For more than 30 days from the actual date of receipt of complete claim papers or 30 days from date of maturity whichever is later, in the case of maturity claim.

(ii) For more than 60 days, from the actual date of receipt of complete claim papers in the case of death claim under policies where no investigation is required.

NOTE 1: If the claimant is the legal assigns of the policy, he will further be required to forward to the Postmaster General any deed of assignment that he may hold. The Postmaster General shall in such a case after making such further inquiries as he may deem fit, order payment of the amount admissible to the assigns. The procedure prescribed in this rule for the payment of the policy shall then be followed.

⁶[Note 2:- Head of Division may sanction maturity claims within the limits prescribed by Director General of Posts from time to time.]

6. Inserted vide Notification No. 25-1/2011-LI dated 18.10.2012.

Cases of early death i.e. before completion of 3 years from the date of Acceptance of a policy will be investigated thoroughly to enquire if the insurant while submitting the proposal had suppressed material information which otherwise would not have allowed the proponent to be eligible for PLI/RPLI and it should be examined whether insurant was suffering from any disease prior to taking of a policy, whether there was any deliberate attempt on the part of marketing staff to insure sub standard life or to cause loss to fund and whether the cause of death had any relation to the disease. The Postmaster General after satisfying himself may sanction death claim.

¹[In death claim for an amount up to Rs. 3,00,000/- (Rs. three lakh only), where no nomination exists or nominee pre-deceases insurant, the production of succession certificate may be waived by the Head of Circle, provided the case is recommended by the Postmaster General concerned on valid grounds. After waiver, the case shall be settled by Postmaster/Manager of Central Processing Centre (GPO/Head Office)/Head of Division/Postmaster General, as per the limits of the claim sanction prescribed by Director General of Posts from time to time, observing usual formalities.]

1. Substituted vide Notification No. 25-1/2011-LI (Part) dated 07.01.2019 for the following:-

"In Death Claim for an amount up to Rs 1,00,000/- (Rs one lakh only), where no nomination exists, the production of succession certificate may be waived by the Head of Circle provided the case is recommended by the Postmaster General concerned on valid grounds. After waiver, the case shall be settled by Postmaster General observing usual formalities."

¹[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.]

²[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.]

³[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.]

1. Substituted vide Notification No. 25-1/2020-LI, dated 24.08.2020, w.e.f. 25.08.2020, for the following:-

"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 General 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 Postmaster General 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 Postmaster 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 Postmaster General 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."

2. Substituted vide Notification No. 25-1/2020-LI, dated 24.08.2020, w.e.f. 25.08.2020, for the following:-

"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."

3. Substituted vide Notification No. 25-1/2020-LI, dated 24.08.2020, w.e.f. 25.08.2020, for the following:-

"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."

(1) The policy for which any premium/premia have become due, not paid either on first day of the month for which the premium is due or within the period of grace allowed as per Rule 44, the policy shall become void.

(2)     (a) If, in the case of a policy where death takes place before the completion of thirty six months from the date of acceptance of the policy and where any premium/premia have become due, not paid either on first day of the month for which the premium is due or within the period of grace allowed as per Rule 44, the policy shall become void and all claims to any benefit in virtue thereof shall cease and all money that have been paid in consequence thereof shall be forfeited except in cases mentioned hereafter;

(i) Provided that for the purpose of this rule, an insured person is not to be considered as in arrears of premium for any months so long as he has not been able to draw his pay, pension, or subsistence allowance during suspension, or if the insured person is on leave in India, any leave allowance though due for the month next before it is due because of circumstances beyond his control.

(ii) Provided further that the provisions of (i) above shall not be applicable to the insurants who pay their premium/premia in cash.

(b) Notwithstanding what is stated above, if death of the life assured occurs within thirty six months from the date of acceptance of the policy, a further period of remission shall be allowed in respect of such polices where premia remain unpaid beyond the period of grace permitted under Rule 44 in the following manner;

(i) If the death of the life assured occurs within six months of the date of acceptance of the policy, no remission period beyond the period of grace shall be allowed.

(ii) If the death of the life assured occurs within twelve months but not before completion of six months from the date of acceptance of the policy, a remission period of 30 days shall be allowed in addition to the period of grace.

(iii) If the death of the life assured occurs within twenty four months but not before the completion of twelve months from the date of acceptance of the policy, a remission period of sixty days shall be allowed in addition to the period of grace.

(iv) If the death of the life assured occurs within thirty six months but not before the completion of twenty four months from the date of acceptance of the policy, a remission period of ninety days shall be allowed in addition to the period of grace.

(v) In the event of death of the life assured taking place during the period of remission allowed as per Rule 56(2)(b) (i) (ii) (iii) and (iv) above and before payment of arrears of premium/premia that had become due along with interest thereon, the policy shall still be considered valid and the sum assured paid to the nominee or legal heir of the insurant as the case may be after the deduction of unpaid premium/premia from the claim amount along with interest thereon at such rate as may be prescribed by Director General of Posts.

NOTE 1: - The Postmaster General, however, has discretionary powers in special cases to allow ex-gratia payment of the value of a policy or a part thereof, or ex-gratia refund of premia paid by the insurant or part thereof, with interest or without interest, provided he is satisfied that there has been no deliberate infringement of rules with the object of using the insurance fund in a manner adversely affecting its interest, and circumstances warrant payment of policy money.

(3) In the event of a policy-holder of a void policy desiring re-instatement of his/her policy within a period not later than six months from the date of first unpaid premium had become due in respect of such policy, he may deposit all the arrears of premium/premia till the date of payment along with interest thereon at the rates as prescribed by the Director General of Posts in the Post Office specified for the purpose of payment of premia in respect of such policy. The re-instatement of the policy shall be automatic without any further act on the part of the insurant or the Department, subject to continued insurability of the life at the time of payment of arrears, and for that the insured person shall submit declaration of good health and medical certificate to this effect from Authorized /Registered Medical Practitioner;

(i) Provided that if any payment purporting to be premium payments are made during the period of six months mentioned above and if they do not cover all the arrears together with interest thereon required to prevent the policy from becoming void, such payment shall be held in suspense and shall not be considered as payment by way of premium to cover the risk of the life assured. No claim whatsoever shall lie on the Department in the event of death of the life assured during such period when premium/premia are held in suspense and the policy is not re-instated. Such premia as are held in suspense shall be refunded to the policy holder or his/her nominee, or his/her legal heir as the case may be, as and when applied for along with interest as prescribed by the Director General of Posts.

¹⁵[***]

15. Omitted vide Notification No. 25-1/2011-LI dated 18.10.2012 for the following : -

"NOTE 1: - Re-instatement of a policy under Rule 56 (3) and Rule 57 (3) can be allowed on only three occasions during the term of a policy."

(1) If in the case of a policy which has remained in force for not less than thirty six months from the date of acceptance of the policy, and where any premium/premia have become due after such period, not paid either on first day of the month for which the premium is due or within the period of grace allowed as per Rule 44, the policy shall cease to be active and treated as lapsed at the end of twelve months from the date the first unpaid premium had become due in respect of such policy;

(i) Provided that for the purpose of this rule an insured person is not to be considered as in arrears of premium for any month so long as he has not been able to draw his pay, pension or subsistence allowance during suspension, or, if the insured person is on leave in India, any leave allowance though due, for the month next before it is due because of circumstances beyond his control.

(ii) Provided further that the provision (i) above shall not be applicable to the insurants who pay their premium in cash.

(2)     (a) Should the policy become a claim either due to death of the life assured or completion of term of the policy within the said period of twelve months from the date first unpaid premium had become due, the claim for the payment of the policy shall be accepted subject to deduction of all arrears of premium/premia together with interest thereon from the date the first unpaid premium in respect of such policy had become due to the date of its becoming a claim, at interest rate prescribed by the Director General of Posts and subject to further deduction of accumulated loan and interest thereon, if any.

(b) If within the above said period of twelve months the policy does not become a claim either due to the death of the life assured or on completion of term of the policy and if no application for surrender value or for making the policy paid up policy is received within that period, the policy will be automatically kept alive only to the extent of its paid up value provided such paid up value is not less than Rs. 10,000/-.

(3) In the event of a policy holder of a policy that has became inactive in terms of sub rule (1) above desiring re-instatement of his/her policy within a period not later than 12 months from the date the first unpaid premium in respect of such policy had become due, he may deposit all the arrears of premium/premia up to date of payment along with interest thereon at the prescribed rates in the Post Office specified for the purpose of payment of premia in respect of such policy. The re-instatement of the policy shall be automatic without any further act on the part of the insurant or the department subject, however, to continued insurability of the life at the time of payment of arrears, and for that the insured person shall submit declaration of good health and medical certificate to this effect from Authorized /Registered Medical Practitioner.

(4) Provided that if any payment purporting to be premium payments are made during the aforesaid period of 12 months mentioned in sub rule(3) above and if they do not cover all the arrears together with interest thereon required to prevent the policy from ceasing to be active at the end of 12 months such payment shall be held in suspense and shall not be considered as payment by way of premium to cover the risk of the life assured. No claim, whatsoever shall lie on the department in the event of death of the life assured taking place during such period when premia are held in suspense and the policy is not re-instated. Such premia as are held in suspense shall be refundable to the policy holder, his/her nominee or his/her legal heir as the case may be, as and when applied for, with interest as prescribed by the Director General of Posts at the time of such refund.

(ii) For the policies in respect of which premium is paid annually in cash in advance no refund of premium shall be allowed except in the case of a claim arising out of death when the premium for the unexpired months shall be refunded.

¹⁵[***]

15. Omitted vide Notification No. 25-1/2011-LI dated 18.10.2012 for the following : -

"NOTE 1: - Re-instatement of a policy under Rule 56 (3) and Rule 57 (3) can be allowed on only three occasions during the term of a policy."

³[(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.]

(2) A policy shall not be considered to have been revived unless an application for that purpose has been made and until the policy has been formally revived in writing.

(3) Any payments purporting to be premium/premia payments made after a policy has become void in terms of Rule 56(1) or has ceased to be active in terms of Rule 57(1) but before the policy is formally revived in terms of sub rule (1) and (2) above shall be held in suspense and shall not be considered as payments by way of premium/premia to cover the risk of life assured. No claim whatsoever shall lie on the department in the event of death of the life assured during such period when premium/premia are held in suspense and the policy is not revived. Such premia as are held in suspense shall be refunded to the policy holder, his/her nominee or his/her legal heir as the case may be, as and when applied for, with interest as prescribed by the Director General of Posts.

(4) The Postmaster General/ Head of Division, may at his discretion in order to revive a policy which has become void under Rule 56 (1) or cease to be active under Rule 57(1) allow the arrears of premia along with interest payable thereon to be paid in convenient installment not exceeding 12 installments in deserving cases under a specific order to be issued in writing. In such cases, the risk of the life assured shall be covered from the day the first installment is deposited provided that subsequent installments have been paid regularly thereafter, as also the normal monthly premia besides the arrears as become due have been deposited regularly as and when due without fail. In the event of death of the insurant, who has been depositing the installment of arrears as directed by the Postmaster General/ Head of Division besides the normal monthly premia regularly as and when due notwithstanding the fact that some arrears of premia remain unpaid at the time of death, the claim against the said policy shall be accepted subject to the deduction of such arrears of premia and interest thereon besides loan amount and interest thereon, if any, from the claim amount.

²[(5) For revival of RPLI policies, these rules shall apply mutatis mutandis.

NOTE: - The revival of a policy under Rule 58 shall be allowed on any number of occasions during the entire term of the policy including the relaxation given under Rules 56(3) and 57(3) for re-instatement. However, a period of consecutive 5(five) years should not have passed from the date of first unpaid premium against such lapsed policy.]

1. Substituted vide Notification No. 25-1/2011-LI(Part-II), dated 19.09.2019, for the following:-

"(1) The Postmaster General/ Head of Division, 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 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, 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 further subject to production of a certificate from the employer (s) that the policy holder had not taken any leave on medical grounds during the last one year, or during the period from the date the first unpaid premium had become due in respect of such policy, 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."

2. Substituted vide Notification No. 25-1/2011-LI(Part-II), dated 19.09.2019, for the following:-

"(5) For revival of RPLI policies, these rules shall apply mutatis mutandis except that the employer's certificate shall not be required.

NOTE: -The revival of a policy under Rule 58 shall not be allowed on more than two occasions during the entire term of the policy which will, however, not include the relaxation given under Rules 56(3) and 57(3) for re-instatement."

3. Substituted vide Notification No. 25-1/2020-LI, dated 24.08.2020, w.e.f. 25.08.2020, for the following:-

^"1[(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.]"

(1)     (a) Loan may be granted on the security of policies other than Anticipated Endowment Assurance , Ten year Rural PLI and Children policies issued under these rules. Such loans may be granted on the security of a Whole Life policy, if it has been in force for at least four years, and is otherwise unencumbered and has acquired a minimum surrender value of Rs. 1000/-. The percentages of the surrender value up to which loans may be granted on the security of a Whole Life policy shall be as per rates prescribed by the Department from time to time.

(b) Loan may also be granted on the security of an Endowment Assurance policy including Joint Life Assurance, if it has been in force for at least three years, and is otherwise unencumbered and has acquired a minimum surrender value of Rs. 1000/-. The percentages of the surrender value up to which loans may be granted shall be as per rates prescribed by the Department from time to time.

(2) Application for loan in the prescribed form available at any Post Office shall be made to the Postmaster General/ Head of Division. The loan application form duly filled in and signed by the insurant, along with the policy shall be handed over, against a receipt, to the Postmaster. The Postmaster concerned shall immediately forward all the papers to the Postmaster General/ Head of Division. In the alternative, the loan application may be sent by the insurant direct to the Postmaster General/ Head of Division along with the policy, premium receipt book (in case of cash policy) and loan repayment receipt book (in case of second or subsequent loan) and disbursing officer's certificate for last six months for deduction of premia (in case of pay recovery policy). The Postmaster General/ Head of Division shall, on receipt of the application and documents, shall verify connected records relating to that policy for eligibility of loan and whether the policy is free from encumbrances. He shall also calculate the amount of loan as admissible on the date of application and sanction the loan, if admissible, on the conditions stated above. A copy of the sanction along with a loan bond with the relevant entries filled in shall be forwarded to the Postmaster concerned with instructions to pay the amount to the applicant after his executing the loan bond, which shall be returned by the Postmaster and kept with the policy and the application for loan in safe custody with the Postmaster General/ Head of Division. The policy shall be released to the insured person or the party legally entitled thereto after ensuring that the amount of loan and interest have been completely repaid. The amount of loan sanctioned should be in complete multiples of Rs. 100/-. Insured person will be supplied by the Postmaster General/ Head of Division (through the Post Office concerned) with a loan repayment receipt book, in which the Postmaster will enter under his initials with date each installment of amount paid in repayment of the loan. In the event of loss of the loan repayment receipt book, the procedure laid down in Rule 32 shall be followed.

The policy against which loan is taken should always be assigned to the President.

If an insured person has assigned his policy in favour of another person, loan on such a policy will be granted to the insured person only on his getting the policy re-assigned in his favour and then assigning it to the President. 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:

DELETE

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

¹[(3) The loan may be repaid at any time. It may also be paid in installments of amount not less than Rs. 100/-. Interest will be charged @ 10% per annum compounding half yearly from the date of disbursement of loan and should be paid on or before the dates specified in the loan bond and loan repayment receipt book. Interest for the half year will be charged on the amount outstanding on the first day of the half year, and any repayment made during that half year will be taken into account for calculation of interest only for the next half year. In the case of final repayment, interest will not be charged beyond the last date of the month in which the final repayment is made provided that interest had already been charged on the loan for at least six months. The responsibility for payment of interest rests solely on the insurant. A notice regarding the amount to be paid as half yearly interest will be issued to the insurant only when there is a change in the amount payable as interest as a result of payment of a part of the principal.

But the plea of non-receipt of such a notice cannot in any circumstances be accepted for nonpayment of interest. If the interest is not paid on the due date, it will be added to the outstanding amount of loan and usual interest charged thereon.

In the event of defaults in the payment of half yearly interest or defaults in repayment of loan, the Postmaster/Manager of Central Processing Centre (GPO/Head Office), will send 1st reminder/intimation to insurant when loan capitalization (including due interest) reaches 90% of the surrender value and 2nd intimation/reminder when loan capitalization (including due interest) reaches 95% of the surrender value and final notice to pay off outstanding loan amount and due interest when loan capitalization reaches 100% of the surrender value.

If the due amount is unpaid within 30 days from the date of issue of 3rd intimation/reminder, the policy shall be forcibly surrendered and the balance, if any of such surrender value will be paid to policy holder thereto.

However, the forced/auto surrender shall not be applied in following cases:

(i) Where policy becomes a claim

(ii) Maturity date of the policy is within the next one year

The outstanding balance of the loan with interest will be recovered from the value of the policy at the time of settlement of the claim. Interest on a loan will accrue up to the last date of the month in which the policy becomes a claim either by maturity or by surrender, provided that interest for at least six months had been charged on the loan.]

(4) On the very date the amount of loan is finally repaid, the Postmaster concerned, shall send intimation to the Postmaster General/ Head of Division giving particulars as to the amount repaid, the date of repayment, the name of the insurant and the policy number and loan account. The insurant is advised in his own interest to send a separate intimation of final repayment of his loan to the Postmaster General/ Head of Division. On receipt of the above intimation, interest chargeable up to the end of the month of final repayment (provided that interest on the loan has already been charged for at least one half year) shall be calculated by the Postmaster General/ Head of Division and communicated to the insurant under registered post. The insurant shall be required to pay the amount of interest at any Head or Sub Post office within 21 days from the date of issue of intimation by the Postmaster General/ Head of Division.

(5) If the insured person wants to surrender the policy before repayment of the loan, he should apply to the Postmaster General/ Head of Division, with whom his policy is kept as security, to surrender the policy, adjust the surrender value thereof to the balance of loan and interest due and to pay him the balance, if any. On receipt of this application, the Postmaster General/ Head of Division will take necessary steps to stop recovery of further premium and to surrender the policy.

1. Substituted vide Notification No. 25-1/2011-LI(Part-II), dated 19.09.2019, for the following:-

"(3) The loan may be repaid at any time. It may also be paid in installments of amount not less than Rs. 100/-. Interest will be charged @ 10% per annum compounding half yearly and should be paid on or before the dates specified in the loan bond and loan repayment receipt book. Interest for the half year will be charged on the amount outstanding on the first day of the half year, and any repayment made during that half year will be taken into account for calculation of interest only for the next half year. In the case of final repayment, interest will not be charged beyond the last date of the month in which the final repayment is made provided that interest had already been charged on the loan for at least six months. The responsibility for payment of interest rests solely on the insurant. A notice regarding the amount to be paid as half yearly interest will be issued to the insurant only when there is a change in the amount payable as interest as a result of payment of a part of the principal.

But the plea of non-receipt of such a notice cannot in any circumstances be accepted for non-payment of interest. If the interest is not paid on the due date, it will be added to the outstanding amount of loan and usual interest charged thereon. In the event of any three defaults in the payment of half yearly interest, the Postmaster General/ Head of Division, will be entitled to surrender the policy and to apply the surrender value thereof in payment of the said loan and interest. The balance, if any, of such surrender value if adequate for a paid up value of Rs. 10,000/- shall be utilized for the issue of such a paid up policy; otherwise the amount will be paid in cash to policy holder entitled thereto.

The outstanding balance of the loan with interest will be recovered from the value of the policy at the time of settlement of the claim. Interest on a loan will accrue up to the last date of the month in which the policy becomes a claim either by maturity or by surrender, provided that interest for at least six months had been charged on the loan."

2. Substituted vide Notification No. 25-1/2020-LI, dated 24.08.2020, w.e.f. 25.08.2020, for the following:-

"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."

Where in respect of any policy maturing for payment, the Postmaster General/ Head of Division is of opinion that by reason of conflicting claims to or insufficiency of proof of title to the amount secured thereby or for any other adequate reason it is impossible otherwise for him to obtain a satisfactory discharge for the payment of such amount, he may take steps, after the expiry of the period prescribed in Section 47 of the Insurance Act,1938, to apply to the Court having jurisdiction for permission to pay the amount into it in accordance with the provisions of Section 47 of the said Act. If the court allows the application, payment shall be made into the court. The Postmaster General/ Head of Division shall also transmit every notice of claim received after the making of the application to the court in order to enable the court to dispose of claims relating to the amount. Upon such payment the fund is discharged of liability in respect of the policy.

In the event of an insured person committing suicide any time after the date of acceptance of the policy (whether sane or insane at that time) and after having paid his first premium in full but not after expiry of two years from such date of acceptance or payment of first premium which ever is later, the policy shall become void and no claim whatsoever shall be entertained by the department by the virtue of the said policy except to the extent of the bonafide beneficial interest which any person ( other than the life assured) shall have acquired in the said policy for valuable consideration for which one calendar months notice, before the death of insured person, should have been given to the Director General of Posts or Postmaster General concerned on his behalf; and provided further that sufficient proof shall have to be produced in regard to having acquired such interest in the policy to the satisfaction of the Director General of Posts or Postmaster General.

If the policy holder is murdered by any of the legal representative/nominee(s), the policy money shall not be paid to the murderer even if he/she is acquitted by the competent court of law by giving him/her the benefit of doubt. If person(s), who in the event of death of policy holder, is/are eligible to receive the policy money under Post Office Life Insurance Rules 2011, is/are charged with the offence of murdering the policy holder or for abetting the commission of such an offence, the claim of such person(s), including other eligible member or members of the family to receive the policy money, shall remain suspended till the conclusion of the criminal proceedings instituted against him/them. If on the conclusion of the criminal proceedings, the person(s) concerned is/are convicted for the murder or abetting the murder of the policy holder or acquitted thereof by giving benefit of doubt, such person(s) shall be debarred from receiving the policy money which shall be payable to other eligible legal heir(s) of the policy holder.

Appendix

Procedure to be followed in connection with proposals submitted by Defence Service Personnel

1. Any member of the Defence Services wishing to insure his life, or to purchase an endowment assurance policy, may obtain the prescribed proposal form from a head post office(1 CBPO / 2 CBPO) or sub-post office (FPOs under 1 CBPO OR 2 CBPO)or from his unit (Parent Unit or Postal Unit serving Parent unit), ship establishment or office. As far as possible he should answer the questions in the proposal form in his own handwriting as he is responsible for the answers to questions available in the Proposal form.. He should submit his proposal to his "immediate superior", i.e.,

(a) in the case of proposers belonging to the Indian Army and serving with units the Officer Commanding or Officer answering in his place.

(b) in the case of proposers belonging to the Indian Navy the Commanding officer of the ship or establishment;

(c) In the case of proposers belonging to the Indian Air Force, the unit or station commander.

(d) in the case of proposers belonging to the Indian Army, Navy, Air force not serving with units the immediate superior officer of Commissioned or Gazetted rank;

2. The "immediate superior" will read and explain the proposal to the proposer and obtain his signature (left hand thumb impression, if the proposer is unable to sign) in his presence and sign the prescribed certificate on the proposal form.

3. The "immediate superior" should prepare in his own office, if possible or obtain from the officer maintaining the records a certified copy of descriptive particulars of the proposer contained in their official records.

4. The "immediate superior" should obtain the proposer's signature (left hand thumb impression, if the proposer is unable to sign) on this certified copy in his own presence and then attach it to the proposal.

5. The certified copy of descriptive particulars should contain the following information:

(a) Full name

(b) Father's name

(c) Place of birth

(d) Date of birth

(e) Date of enrolment

(f) Identification mark (at least two)

(g) Rank/rating; parent arm/corps; present unit/ship appointment personnel/official number.

(h) If commissioned, type of commission i.e., permanent, short service, extended service etc.

(i) Particulars of the officer maintaining the proposer's pay accounts.

(j) Particulars of the officer who will accept debit for the premium recoverable from the insured as well as from the Defence Services Estimates.

6. In the case of members of Defence Services the "immediate superior" will also discharge the following duties.

(a) Will carefully scrutinize the proposal and the certified copy of descriptive particulars with special reference to the admissibility of the terms of the proposal, and if it is found that the life of the proposer was on any previous occasion rejected on medical grounds, either by the post office life insurance fund or by private insurance company or the proposer had ever been found medically unfit for any particular type of duties, the medical opinion should if possible be obtained and forwarded with the proposal form to the medical officer to whom the proposer is sent for medical examination; otherwise the attention of the medical officer should be specially drawn to the entries to that effect made against the relevant questions by the proposer in the proposal form.

(b) Should compare the entry regarding the proposer's age as entered in the proposal form with the corresponding entry in the certified copy of descriptive particulars and if there is any discrepancy he should take immediate steps to have it reconciled. If necessary he will obtain from other officials of the branch to which the proposer belongs or from the officials of any other branch or department under whom the proposer may have served or from the persons named in the proposal or, from any other source, information regarding the proposer's age.

7. EXEMPTION OF DEFENCE PERSONNEL FROM MEDICAL EXAMINATION

Defence personnel who are in medical category 'SHAPE-1 for Officers and 'AYE' for JCOs/NCOs/OR, will be exempted from Medical Examinations while submitting the proposal for taking Postal Life Insurance Policy. Full claims for sum assured along with the vested bonus will be admissible to the claimant(s) if a policy becomes claim after its acceptance. Suicidal cases will however be governed by the existing Post Office Life Insurance Rules - 2011.

8. EXEMPTION OF ASSAM RIFLES AND PARA MILITARY FORCES PERSONEL FROM MEDICAL EXAMINATION

Assam Rifles and Para Military personnel who are in medical category 'SHAPE-1 for Officers and 'AYE' for JCOs/NCOs/OR or equivalent, will be exempted from Medical Examinations while submitting the proposal for taking Postal Life Insurance Policy. Full claims for sum assured along with the vested bonus will be admissible to the claimant(s) if a policy becomes claim after its acceptance. Suicidal cases will however be governed by the existing Post Office Life Insurance Rules - 2011.

9. The defence civilian proponents shall be subject to usual medical examination by the respective Medical Officers as prescribed in "Post Office Life Insurance Rules 2011". All other terms and conditions of medical examination shall also apply as mentioned in the concerned rules of "Post Office Life Insurance Rules 2011".

10. Marketing staff.--

Every APS personnel are eligible to work as marketing staff for procurement of PLI Business and act as 'Agent' for the purpose. He will procure PLI business either directly from personnel of defence, Assam Rifles/ Para Military or from units in bulk. He will collect the proposal forms and carryout the prescribed checks before submitting to the Officer Commanding Postal Units who will hithertofore called as 'Field Guide'.

11. Scrutiny of PLI Proposals & submission of invoices by Postal Units (Field Guides)

Field guides shall scrutinize the proposal forms and affix his signature in each form in token of having checked them keeping in view their eligibility conditions and forward them to Addl D G of APS (PLI Cell) for acceptance and issue of policy documents or otherwise.

12. Action at O/O Addl. D G of APS

Thoroughly check the proposal form and return the forms wherever wanting of signature and non availability of supporting documents if any. Necessary follow up action, if proposal is fit for acceptance, may be taken by issue of acceptance letter, policy documents, etc.

13 Arrangement for recovery of PLI premium/premia from the PAO concerned in respect of Pay recovery policy

A consolidated transcription sheet is prepared PAO wise and sent to PAO concerned where ever necessary for recovery of premium/premia from the Individual Running Ledger Account/Monthly Pay account of the proponents concerned.

14. Importance of first premium payment

Where the proposer has authorized the officer responsible for the maintenance of his pay and accounts to recover the first premium by deduction from his pay & allowances, this should not be left over to be made in the beginning of a month. On receipt of the letter of authority from the proposer through the Addl. D G of APS(PLI Cell), the officer responsible for maintaining the pay and accounts should, where necessary, treat the amount of the first premium as an advance of pay given to the proposer and simultaneously show it as credited to Government by way of recovery of the first premium. The contract of insurance with the proposer will take effect from the date of acceptance of proposal as well as the payment of the first premium into a post office or into the imprest account of the ship or unit or in the case of recovery from pay from the date of debit to the Individual Running Ledger Account (IRLA) even though a corresponding credit is not afforded in the Government account on that day. The Postmaster (including base and field postmaster), the holder of the imprest account or the officer recovering the first premium from pay should send an immediate report in the prescribed form to the Addl. D G of APS as soon as first premium is paid. On receipt of the intimation of the payment of the first premium either from the Post office or from the imprest holder or from the officer maintaining the pay accounts, as the case may be, the Addl. D G of APS will arrange for the issue and delivery of the policy to the proponent direct or through training establishment concerned.. In all cases the officers maintaining the pay and accounts will be instructed by the Addl. D G of APS to recover the second and subsequent premium as a standing arrangement.

NOTE 1: Payment of the first premium should not be accepted by a Postmaster or holder of imprest account if he knows that the person tendering it is at the time is no longer eligible for admission to the benefits of the Post Office Insurance Fund. In similar circumstances the officer responsible for maintaining the pay and accounts should not effect recovery of the first premium from pay etc. In such a case intimation of the fact should be given to the Addl. D G of APS.

15. The PAOs concerned are required to send PLI recovery schedules for first premium and advance schedules for subsequent premia on quarterly basis for the quarter ending Feb, May, Aug and November of the year by Ist week of Dec, March, June and Sep of the year to DPLI, Kolkata with one copy to Addl. D G of APS. Addl DG of APS shall keep watch over timely receipt of the schedules from each PAO. The certified copies of schedules received from the DPLI, Kolkata shall be tallied with the copies of schedules received from the PAO concerned and the discrepancies, if any, shall be got reconciled.

16. The "Post Office Life Insurance Rules 2011" shall apply equally to PLI policies in APS except where specially mentioned.

GLOSSARY

TABLE-1

POSTAL LIFE INSURANCE

 POST OFFICE INSURANCE FUND-PREMIUMS IN FORCE FROM THE 4th AUGUST-2003

WHOLE LIFE ASSURANCES

(MONTHLY PREMIUMS FOR AN ASSURANCE OF Rs.5000/-)

TABLE-II

POSTAL LIFE INSURANCE

POST OFFICE INSURANCE FUND- PREMIUMS IN FORCE FROM THE 4^th AUGUST -2003

ENDOWMENT ASSURANCES

(MONTHLY PREMIUMS FOR AN ASSURANCE OFRs.5000/-)

¹[TABLE-II-A

POST OFFICE INSURANCE FUND

ENDOWMENT ASSURANCES

(QUARTERLY PREMIUMS FOR AN ASSURANCE OF ?? 5000/-)

Note: The amount of net premium worked out according to term opted by a proponent should be rounded off to next rupee.

TABLE-II-B

POST OFFICE INSURANCE FUND

ENDOWMENT ASSURANCES

(HALF-YEARLY PREMIUMS FOR AN ASSURANCE OF ?? 5000/-)

Note: The amount of net premium worked out according to term opted by a proponent should be rounded off to next rupee.

TABLE-II-C

POST OFFICE INSURANCE FUND

ENDOWMENT ASSURANCES

(YEARLY PREMIUMS FOR AN ASSURANCE OF ?? 5000/-)

Note: The amount of net premium worked out according to term opted by a proponent should be rounded off to next rupee.]

TABLE-III

POSTAL LIFE INSURANCE

PREMIUM TABLE

Convertible While Life Assurance

Monthly Premium table for an assurance of Rs 5000/- Payment at death with option to Convert the policy at the end of 5 years from the commencement, in to an Endowment Assurance maturing at the specified age

¹[Note: For the purpose of this Table minimum age at entry will be 19 years of age and maximum 50 years.]

Table IV

ANTICIPATED ENDOWMENT ASSURANCE

POSTAL LIFE INSURANCE

Monthly premium payable for an assurance of Rs.5000/-

Table V

Monthly premiums per Rs 10,000 sum Assured for Yugal Surksha.