Post on 16-Dec-2015
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