What is POLI Rule 2011
The full form of POLI Rules is Post Office Life Insurance Rules 2011. These rules are being used to regulate India Post best product, that is the Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI). PLI is also known as Postal Life Insurance for government employees. In beginning days PLI is also called Post life Insurance. To regulate the procedure and how it will be work, some rules are created by the Department of Posts. These rules are named as POLI Rules 2011. You can also download ROLI Rules 2011 from here for more information.
There are many amendments that have already been done in Post Office Life Insurance Rules but recently, a new gazette notification has also been issued regarding new amendments in POLI rules 2011.
In this new gazette notification, the amendment has been done in rule no. 55, 55.1, 55.2, 58 (1), and 59 (2) of POLI rules 2011. The new amendment will be effected by w.e.f. 25 August 2020.
What amendment is done in POLI rules 2011
1. POLI Rule 55, 55.1 and 55.2 are amended as under: –
POLI Rule 55 before amendment- 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 the 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 policyholder asks for it. No bonus will be paid in respect of a policy with effect from the date of discontinuance of premia. The proportionate bonus shall be paid on paid-up value after completion of 5 years i.e. if policy remains in force at least for 5 years.
POLI Rule 55 after amendment- 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 the 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 policyholder asks for it. No bonus will be paid in respect of a policy with effect from the date of discontinuance of premia. The proportionate bonus shall be paid on paid-up value after completion of 5 years i.e. if policy remains in force at least for 5 years.
POLI Rule 55.1 before amendment- 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 the consent of insurant from taking payment of the 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 a sanction for payment of the 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.
POLI Rule 55.1 after amendment- 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 the consent of insurant for taking payment of the 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 the concerned approving authority for approval. After approval of the case by the concerned approver, Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) will issue a sanction for payment of an 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.
POLI Rule 55.2 before amendment- 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.”
POLI Rule 55.2 after amendment- 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.”
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2. POLI Rule 58(1) is amended as under:
POLI Rule 58.(1) before amendment- 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 reinstated 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.
POLI Rule 58.(1) after amendment- Authority competent to accept the 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 reinstated 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.
3. POLI Rule 59(2) is amended as under:
POLI Rule 59(2) before amendment- “…..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.
POLI Rule 59(2) after amendment- “…..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
the previous loan”
Revised Limits of first & subsequent loan against PLI & RPLI policies:
Designation- Postmaster of CPC of HOs/ GPOs
Existing Limit- No limit
Proposed revised Limits- No limit
DELETE
*The Postmaster General may grant second or subsequent loan in exceptional circumstances.
You may download gazette notification from the below link.