PLI- Eligibility

• Government servants • Defense Service• GDS• Govt aided Educational Institutions• Universities established by Govt• Local Bodies- Muncipalities, ZPs• Banks

PLI- Plans available

1. Whole Life Assurance (SURAKSHA)– Payment only to nominee on death of insurant– Premium payable for selected period

PLI- Plans available

2. Endowment Assurance (Santhosh)– Lump sum payment at desired age– Payment to nominee- on death

PLI- Plans available

3. Convertible Whole Life Assurance (Suvidha)– Less premium for 1st 5 years– Conversion option with higher premium

PLI- Plans available

4. Joint Life Insurance (Yugalasuraksha)– Payment at the end of term– Payment to either of two lives- on death– Spouse to be literate– Standard proof of birth

PLI- Plans available

5. Anticipated Endowment Assurance (Sumangala)– Payment at periodical intervals

15 Yr AEA 20 Yr AEA20% 6,9,12 Yrs 8, 12,16

Yrs40% 15 Yrs 20 Yrs

– Payment of bonus at the end– Payment to nominee on death• Full sum assured + Bonus

PLI- Plans available

• Children’s Policy– Parent’s and children’s risk covered– Parent should have a policy– Non-medical policy– Minimum- Rs.20,000– Maximum- Rs.1 lac– One E/A– Two children only

PLI- Features

• Risk cover• Premium calculated on the basis of– Age at entry– Maturing age/Premium ceasing age/term– Rebate allowed

• Others: Each 20,000 -Re.1/• Yugala Suraksha: First 40,000 -Re.1/ addl each 10,000 -Re.1/

PLI- Features- Age restriction

Plan Min Age Max Age

Whole Life As 19 55

Endow.As 19 55

Convert WLA 19 50

Anticipated EA

19 45

Yugal suraksha

21 45

Children polyChild

1905

4520

PLI- Features- Limit of holding

• Limit of Insurance– In multiple of Rs.10,000 – Minimum- Rs.20,000– Maximum (aggregate Rs.20 lac)• WL, EA, CWL - 20 lac• YS, AEA - 05 lacs• Children Poly - 01 lac• Non-Medical - 01 lac• PHP - 01 lac

Exercise 1

PLI- Features

• Advance deposit adjusted as 1st premium• Subsequent installments to be paid on due

date within in grace period of one month (end of the month)

PLI- Features

• Rebate for advance deposit– 12 Months- 2%– 6 Months- 1 %

• Rebate Yugalasuraksha– 12 M- 50% of single Premium– 06 M- 10% ---------do---------– 03 M- 02% ---------do---------

PLI- Features- Bonus

Type of Policy Rate of Bonus per Rs.1000 of sum assd

Whole Life Assurance

Rs.90

Endowment Assurance

Rs.65

A/E Assurance Rs.60

Joint Life Insurance Rs.65

Children Policy Rs.65

PLI- Medical Report

• Necessary for the following– Age at entry exceeds 35 years– Sum assured more than Rs.1 lac– Endowment Poly maturing at 35 years of age– Anticipated Endowment Policies

Exercise 2

RURAL PLI (RPLI)

• For Rural people • Schemes:– Whole Life (GRAMA SURAKSHA)– Endow Assurance (GRAMA SANTOSH)– Convertible Whole Life (GRAM SUVIDHA)– Anticipated Endowment GRAM SUMANGAL)– 10 Year Rural PLI (GRAM PRIYA)– Children policy

RPLI-LIMITS

• Minimum- Rs.10,000

• Maximum-– Rs.25,000 (without medical)– Rs.5,00,000 (on medical)– Rs.1 lac (Age 45 & above/NS age proof)

RPLI-AGE LIMIT

• Minimum- 19 on next DOB• Maximum:

WL and EA 65CWL and 10 yr Plan 50AEA 47

• Above 35 years only medical policies

RPLI-AGE LIMIT

• Age proof– Standard– Non-standard

• Bonus– Endowment 55 per 1000 S/A– W/L 60 per 1000 S/A– AEA 50 per 1000 S/A

Acceptance of PLI at RO/CO

• Proposal Register• Scrutiny of proposal• Acceptance or Rejection• Calculation of premium• Preparation of History sheet• Allotment of Policy Number• Intimation of acceptance• Sanction of Medical Fee

PLI

• Payment of monthly premium– Deptl employees & GDS recovery from pay and

remittance directly to PLI– Others Group Leader to make deposits as RD PRSS

• Individuals can also deposit in POs

PLI

• Premium if not paid within the prescribed grace period can be paid with DF at 12 %

• Default fee at 12% collected for first 12 months

PLI

• Formula for default fee calculation (monthly)

N(N+1) x Premium rate 200

N= Defaulted months

Exercise 3

After sale service

• Revival of lapsed policy• Loan• Surrender of policy• Payment on Maturity• Payment of Death claim case• Miscellaneous services

PLI -Lapsing of Policy

• Policy less than 3 years

• Policy of more than 3 years

• If not paid within 6 months- treated as lapsed. Revival by CPMG

• If not paid within 12 months- treated as lapsed. Revival by CPMG

REVIVAL

• Check whether– Policy is lapsed– Revival is not availed for more than two occasions– Repayment in one lump or instalments – Any non-credit/missing credit /short collection is

to be taken into account

Revival....

• Check whether……– Insurant furnished medical certificate in the

format prescribed– Declaration from two respectable persons

furnished– Good health declaration is given – Reasons for non –payment are furnished

Revival….

• Calculate interest at 12% simple for less than 12 months and compound for 12 and above

• Send revival intimation letter• On receipt of intimation regarding payment of

arrear premia with interest issue formal sanction of revival

• Make entries in the revival register

Exercise 4

PLI- Loan

• Loans can also be obtained from Banks• Loan is sanctioned by CPMG on security of

policy• 10 % interest compounded half yearly basis

charged• Entitlement on prefixed proportion of surrender

value as per table below

PLI- Loan- entitlement

Policy Year in force % of surrender value

Whole Life and Convertible whole Life Ass

4 years 4-7 Yr : 60 %7-12 Yr : 80 %> 12 Yr : 90 %

Endowment Assurance/YS

3 Years 3- 05 Yr : 60%5- 10 Yr : 80%> 10 Yr : 90%

Loan…

• Verify status of KLC• Premia should have been paid for a min. of 3

yrs for EA and 4 yrs for WLA• No loan for AEA and children policy• Missing/non-credit of premia got verified• A second or subsequent loan after adjusting

the outstanding loan +interest

Loan…

• After adjustment of outstanding loan with interest, if balance works out to less than Rs.1000/ no loan

• Assign PD in favor of President of India• Issue loan sanction and LRRB

Review of loan

• Interest for the half year charged on the amount outstanding on the first day of the half year

• In case of final repayment, interest will not be charged beyond the last date of the month in which final payment is made, provided that interest had been charged for at least six months

Review of loan….

• If there are continuous 3 defaults, action may be taken to surrender the policy

PLI- Surrender after certain period as below

EA/YS After 3 years

WLA After 4 years

Children Policy After 5 years

AEA Not permissible

PLI- Surrender…

• Application in plain paper– Policy bond– PRB or PDO Cft

• Calculation as per formula and Surrender Value Factor

• It is like taking a train ticket Bangalore to New Delhi and getting down at Nagapur

Surrender…

• Verify the status of KLC• Check if premia is paid for 3 yrs in EA 4 yrs in

WLA policies • Whether premia paid upto current month

Surrender…

• Check for any missing/non-credits• Check if outstanding loan with interest to be

adjusted in the surrender value• In discontinued policy, where premium paid

for >3 yrs, eligible paid up value to be paid • Add bonus if policy completed 5 yrs

Surrender….

Surrender amount =

(Paid up value +Proportionate Bonus) X Surrender Factor

Surrender….

Paid up value=

Sum assured X Paid period Payable period

Exercise 5

Maturity Claim

• Due on the following month of last premium• Application in LI-9(b) or in plain paper– Policy bond– PRB or PDO Cft– Loan RRB

• PO to collect the above and submit to CPMG

Maturity Claim….

• Verify KLC• Check for missing/non-credits• Calculate eligible maturity + year wise bonus

(April to March) by adjusting outstanding loan with interest

• If it is AEA, survival benefit already paid to be adjusted

Death Claim • Settled on the basis of– Nomination– Legal Evidence– Other (No nomination, no legal evidence up to

Rs.1,00,000/

Death Claim….• On death of insurant• Ascertain full information of holdings• Decide

Claim application form to be given Whether early claim or non-early claim Whether legal evidence necessary or not

Death claim…

• Legal evidence required– No nomination– Nominee is minor but guardian is no more– Nominee is minor but there is no appointee– Nominee no more– Amount exceeds Rs.60,000/

Death Claim….• Give full details of documents to be furnished by the

claimant Original Policy Bond PRB or PDO Certificate Death certificate Doctor Certificate/Report who attended Postmortem Report & copy of FIR- in accident death Legal evidence

Death Claim….

• Applied in the prescribed form enclosing the following documents– Original Policy– PRB or PDO Cft– Death Certificate– Doctor Cft/Report, who attended– Death due to accident Post Mortem Report &

copy of FIR

Death claim….

• Check original PD, Premium receipt book, loan repayment book, if any

• Death certificate, FIR/postmortem report/forensic report if required

• Court directions in case of disputes• Leave report from the employer for the last 3 years• Certificate issued by doctor/hospital who last

attended

Death claim…

• If death by suicide within 2 years of acceptance

• Whether premium credited to upto death• Non-credits if any, reasons• Whether payment of regular premia is within

the grace period

Remission period for death within 3 years

Within 6 Months of date of acceptance

NIL

6 Months to 11 Months

30 days + Grace period

12 Months to 23 Months

60 days + Grace period

24 Months to 35 Months

90 days + Grace period

Death Claim…. • Enter in the claim register• Specific objection or Verification• Verification necessary only in case of

• Early claims• Doubtful information• No nomination & no legal evidence (optional)

Death Claim….

• Calculate amount eligible– Sum assured Plus eligible bonus by adjusting

outstanding loan with interest

• For non-medical policies as per the table below

Non-medical policy

Death within one year

35% of S/A + Bonus

Death within two years

60% of S/A + Bonus

Death within three years

90% of S/A + Bonus

After three years 100% + Bonus

Death claim…

• If payment of claim is attributable to administrative delays, interest @ 8% shall be payable for More than 30 days from the date of receipt of

complete papers or from the date of maturity whichever is later

More than 60 days, from the actual date of complete papers in case of death claim cases where no investigation is required

Death Claim….

• Issue sanction• Watch payment• Note the date of payment in the claim register

Exercise 6

Miscellaneous services

• Conversion of policy• Transfer of policy• Issue of Duplicate PRB• Issue of Duplicate Policy Bond• Change of Nomination