Postal Life Insurance

About Postal Life Insurance

  • 1. What is PLI & RPLI?
    A contract entered into by the Government to pay a given sum of money along with accrued bonus on maturity or on death of an individual to his nominee/heirs.
  • 2. When did PLI and RPLI start?
    Postal Life Insurance (PLI) was introduced on 1st February 1884. In 1894, PLI extended insurance cover to female employees at a time when no other insurance company covered female lives. 

    Rural Postal Life Insurance (RPLI) has been introduced with effect from 24th March, 1995 for the benefit of rural populace to extend insurance cover to the people living in rural areas with special emphasis on weaker sections and women workers. 
  • 3. What are the advantages of PLI and RPLI policies?
    Low premium and high bonus distinguishes PLI and RPLI policies from other life insurers.
  • 4. Can one revive a lapsed policy?
    If the premia are not paid for 6 months in case of policy within 3 years, (or) 12 months in case of policy more than 3 years, then the policy becomes lapsed. This needs revival to make it active. Revival may be on any number of occasions during entire term of the policy, provided a period of consecutive 5 (five) years should not have passed from the date of first unpaid premium (restriction of 5 years is applicable on the policies issued after 20.09.2019). After credit of due premium with interest @12%per annum and a good health certificate, the policy can be revived. Revival amount may be paid in one lumpsum or in convenient instalments not exceeding 12 instalments.
  • 5. What happens if one forgets to pay one’s premium in a month?
    One can pay the premium in the subsequent month, by paying a minimum fine of 1% of premium amount per month.
  • 6. Is income tax rebate admissible for PLI policies?
    Income tax rebate is available under the section 80-C of Income Tax Act.
  • 7. When is the medical examination of proposer mandatory?
    A PLI policy upto ₹ 2 lakh of sum assured will be non-medical irrespective of age limit. Further, medical examination is not required for a policy (i) upto ₹ 5 lakh in PLI for age of proposer not exceeding 40 years and (ii) upto ₹ 1 lakh in RPLI for age of proposer not exceeding 35 years. Medical examination is mandatory in respect of other PLI/RPLI policies.
  • 8. What are the benefits of medical policy?
    It is always better and safe to go for medical policy. Non-medical policy attracts deduction of sizable percentage of death claim amounts, if policyholder dies within 3 years from the date of acceptance of policy.
  • 9. Who are eligible for PLI and RPLI policies?
    PLI policy is available to following: -
    (1) All permanent and temporary employees of Central/State Governments, Universities established by Governments (Centre/State), Gramin Dak Sewaks, Government Aided educational institutions, Nationalized Banks, State Bank of India, Subsidiary Banks of State Bank of India, Financial Institutions notified by Government,  Defence personnel (Army, Navy, Air Force), Personnel of para military force including Assam Rifles, ITBPF, CISF, BSF and CRPF etc., Regular employees of Public Sector Undertakings(Centre and State), Regional Rural Banks, Permanent & temporary servants of local bodies  paid from “Local Funds” as defined in Fundamental Rule 9 (14).

    (2) All permanent and temporary employees of the Council of Scientific and Industrial Research, The Medical Council of India, The Dental Council of India, The Nursing council of India, and The Pharmacy Council of India9.

    (3) Industrial and Work-charged employees in the Department of Posts and Department of Telecommunications whose pay is regulated under the “Fundamental Rules”.

    (4) All permanent and temporary employees of autonomous body established by stipulated rules of Centre/State governments9.

    (5) Members of the Defence Services including those holding short service commission, extended service commission and other kinds of non-permanent commissions are also eligible to join the fund.
    (6) Employees engaged/appointed on contract basis by Central/State Governments, where contract is extendable.

    (7) Employees of Joint Ventures in which Central/ State Governments/ Public Sector Undertakings/ Nationalized Banks have minimum holding of 10 percent.

    (8) Members/employees of Credit Cooperative Societies and other cooperative societies registered with Government under the Cooperative Societies Act and partly or fully funded from the Central/State Governments/RBI/SBI/Nationalized Banks/ NABARD, and other such institutions notified by Government.
    (9) Employees of Deemed Universities and Educational Institutes accredited by recognized bodies such as National Assessment and Accreditation Council, All India Council of Technical Education, Medical Council of India, etc. and/ or affiliated to Universities/ Boards, etc.

    (10) Employees of all Scheduled Commercial Banks.

    (11) Employees (teaching/non-teaching staff) of all private educational institutions/schools/colleges etc. affiliated to recognized Boards (recognized by Centre/State Governments) of Secondary/Senior Secondary education i.e. CBSE, ICSE, State Boards, Open Schools, etc. 

    (12) Professionals such as Doctors (including Doctors pursuing Post Graduate degree courses through any Govt/Private Hospitals, Residents Doctors employed on contract/permanent basis in any Govt/Private Hospitals etc), Engineers (including Engineers pursuing Master’s /Post Graduate degree after having passed GATE entrance test), Management Consultants, Charted Accountants registered with Institute of Charted Accountants of India, Architects, Lawyers registered with Bar Council of India/States, Bankers working in Nationalized Banks and its Associate Banks, Foreign Banks, Regional Rural Banks, Scheduled Commercial Banks including Private Sector Banks etc. 

    (13) Employees of listed companies of NSE(National Stock Exchange) and Bombay Stock Exchange(BSE) in IT, Banking & Finance, Healthcare/Pharma, Energy/Power, Telecom, Infrastructure Sector etc, where employees are covered for Provident Fund/Gratuity and/or their leave records are maintained by the establishment. 

    Benefit of Rural PLI is available to all people residing in rural areas.

  • 10. Has declaration on proposal form about fitness/medical history any bearing on the policy?
    Yes, it is always safe and secure to declare truthfully about one’s health condition, ailments or family history while taking a policy.
  • 11. When can conversion of a policy be done?
    Conversion of PLI/RPLI policy means alteration affecting the date of maturity of contract of insurance and includes not only alteration of WLA to EA but also ante-dating or post-dating of the maturity of an EA policy and consequent increase/decrease of premium.
  • 12. If one spouse is eligible for taking PLI but the other is not, is there any scheme in PLI for both?
    We have ‘Yugal Suraksha’ scheme under which both can jointly get a policy and get their lives insured on payment of paying a little more premium.
  • 13. Is there nomination facility available in PLI/RPLI?
    Yes, nomination can be made for three (3) persons. A policyholder is advised to nominate a person 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 sum payable under the policy. If all nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs/legal representative(s) on the basis of succession certificate, as the case may be.
  • 14. When can assignment of a policy be made?
    Policies may be assigned by the policyholder either for valuable consideration, loan against policy or by way of gift.
  • 15. Is loan facility available?
    Loan may be taken against (i) WLA and Convertible WLA policies after completion of 4 years and
    (ii) EA and YS policies after completion of 3 years. Loan is not available in AEA and Children policy.
    Loan entitlement is calculated on a prefixed proportion of the surrender value. Interest @ 10 % per annum is calculated on a six-monthly basis. Further, interest is payable once in six months.
  • 16. Can one continue the policy if one quits the service?
    One can continue the policy by making payment at any of the Post Office across the country or through online mode.
  • 17. How can policyholder pay premium?
    PLI and RPLI policyholders can pay their premium at any post office across the country. In case of salaried employees, recovery of premia from salary is possible. Alternatively, premium may also be paid online at the customer portal through debit/credit card, wallet, BHIM/UPI and net banking. Customer Portal offers a convenient any-time and any-where premium payment option to policyholders and allows policyholders to view the status of their policies on a real time basis.
  • 18. Is rebate allowed in PLI/RPLI premium payment?
    Admissible rebate @ 1% and 2% shall be given for (i) 6 months and (ii) 12 months or more advance deposits in PLI respectively. Admissible rebate @ 0.5%, 1% and 2% shall be given for (i) 3 months, (ii) 6 months and (iii) 12 months or more advance deposits in RPLI respectively. In addition, for every Rs. 20,000/- sum assured, a rebate of Rs. 1 is allowed every month in EA/WLA/AEA policies.
  • 19. What will be the surrender value of PLI/RPLI policy?
    Surrender facility is available after 3 years in case of WLA, EA, CWLA and YS policies. No surrender facility is available in case of AEA and Children policy. Surrender value depends on the surrender factor, type and term of policy. Surrendering any policy is always a loss. Bonus on the reduced sum assured is paid only if the policy is surrendered after 5       years.
  • 20. How are claims settled in PLI/RPLI policies?
    All types of claims are settled as per prescribed SOP and Citizen Charter norms.
  • 21. Can an appeal be preferred against rejection of death claim in PLI / RPLI?
    Yes. An appeal may be preferred by the claimant against rejection of death claim to the next higher authority in Department of Posts.
  • 22. How can a policyholder update her/his mobile number and e-mail id in PLI/RPLI policy?
    Policyholder can call on toll free number 18002666868 to add/delete her/his mobile number and e-mail id in PLI/RPLI policy or can contact the nearest post office for updation. Updation of mobile number and e-mail id in the record will further help the policyholder to access his/her policy and pay premium through online mode.
  • 23. Will the policyholder be required to place any request in case of voluntary retirement/resignation/retirement to pay their future premia in cash if their current mode of payment is pay recovery?
    Yes, the policyholder will be required to submit a request in writing for change the mode of payment of premia from pay to cash in the nearest PO/CPC
  • 24. Can the due premia along with the default fee be deposited via online customer portal if the policy status is void/inactive/lapse?
    Due premium along with default fee can be deposited via online customer portal if the policy status is void/inactive. However, for the lapsed policy, revival form can be downloaded from India Post website and revival quote for the policy can be generated from customer portal and then policyholder can approach the nearest PO/CPC for further assistance
  • 25. Can the repayment of loan be made via online mode through customer portal?


  • 26. If the mode of payment of premia has chosen as cash/cheque while purchasing the policy, does policyholder need to give any written application for making the premium payment through online mode?

    Not required

Last Updated:31 Oct 2023