Revised procedure for procurement of PLI policies by Defence Personnel through Civil Post Offices and its servicing: Department of Posts

Revised procedure for procurement of PLI policies by Defence Personnel through Civil Post Offices and its servicing: Department of Posts

F.No.25-05/ 2020-LI (Pt)
Ministry of Communications Department of Posts
(Directorate of Postal Life Insurance).
Chanakyapuri P.0. Complex,
New Delhi-110021

Dated: 02.08.2022

To,

All Head of Circles/ Addl. DG APS
Director, RAKNPA, Ghaziabad/CGM (CEPT)
All Director, PTCs/ Director, PLI, Kolkata

Sub: Revision of procedure prescribed in appendix of Post Office Life Insurance Rules, 2011.

Sir/Madam,

On discontinuation of insurance service and closure of PLI Section in APS, procurement of new PLI Policies pertaining to Defence Personnel was stopped w.e.f September 2017. Subsequently, policy servicing was also stopped in APS and all casefiles maintained by them were transferred to 36 civil CPCs in various Circles.

2. In view of the above, the procedure laid down for procurement of PLI Policies exclusively by APS prescribed in appendix part of Post Office Life Insurance Rules, 2011, has been revised accordingly for procurement of PLI policies by Defence Personnel through Civil Post Offices and its servicing thereof.

3. In this regard, a copy of the Gazette of India notification issued vide file no. 25- 05/ 2020-LI (Pt) dated 15.07.2022 is attached along with following documents for easy understanding: –

1. A “CONSENT FORM” to be filled in by Defence Services Personnel who desire to pay their PLI renewal premium through Pay recovery Mode. (Annexure-I)
2. Instructions for PLI-CPCs and DDOs/ PAO briefing them about the necessary steps/procedures to be followed for correctly recovering the premium, handling of case files by CPCs etc., bifurcation of GST etc. along with an illustration. (Annexure-II)
3. A list of Defence PAOs along with the name of their respective mapped CPCs, for ease/facilitation of CPC Staff. (Annexure-III)

4. This information along with all the attached documents may be widely disseminated among all CPCs, Counter Staffs, sales forces for wide publicity and for adhering to the revised procedure and instructions.

This issues with the approval of competent authority.

(Hariom Sharma)
Deputy Divisional Manager- II

Encl: As above.

MINISTRY OF COMMUNICATIONS
(Department of Posts)
(DIRECTORATE OF POSTAL LIFE INSURANCE)
NOTIFICATION
New Delhi, the 4th July, 2022

No. 25-05/2020-LI(Pt).—The President is pleased to amend and revise the APPENDIX having “Procedure to be followed in connection with proposals submitted by Defence Service Personnel” of “Post Office Life Insurance Rules-2011” published on 28th April 2011 in the Gazette of India No. 85 (Part-I Section-I Extraordinary) as under: –

PROCEDURE TO BE FOLLOWED IN CONNECTION WITH PROPOSALS SUBMITTED BY DEFENCE SERVICE PERSONNEL (INCLUDING PERSONNEL OF ASSAM RIFFLES AND PARAMILITARY FORCES)

Any member of the Defence Services wishing to purchase a Postal life Insurance Policy shall be governed at par with other proponents as per “Post Office Life Insurance Rules, 2011” and amendments issued from time to time, except for the following: –

1. Defence personnel who are in medical category “SHAPE-1” for Officers and JCOs/NCOs/OR or equivalent, will be exempted from Medical Examination while submitting the proposal for taking Postal Life Insurance Policy. Defence Personnel who are not in “SHAPE-1” category shall undergo medical examination as per the procedure prescribed for other civil proponents.

2. 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 rules concerned of “Post Office Life Insurance Rules 2011”.

3. Premium Payment: -First premium shall always be paid by the proposer through cash or cheque at par with other proponents as per the provision laid down in “Post Office Life Insurance Rules, 2011”. However, mode of subsequent premium payment may be selected by the proponent as Cash (including cheque/online or any other payment mode authorized by Department from time to time) or deduction through Pay.

4. Nature of action to be taken by PLI-CPC for collection and updation of subsequent/future premia for Cash/Pay Recovery Policies of Defence Personnel is as under: –

4.1 In case of Cash Policies: – Such policies shall be dealt at par with Cash policies, as of other Civil Proponents.

4.2 In case of Pay Recovery Policies: –

4.2.1 In case of a PLI proposal received at a CPC, which is already mapped with the DDO/PAO/CDA concerned of the proposer: -The CPC concerned shall forward the acceptance letter along with consent of the insurant to the Drawing & Disbursing Officer (DDO)/Pay Account Officer (PAO)/Controller of Defence Accounts (CDA) of the proposer, for deduction of subsequent premia from the pay.

4.2.2 In case of a PLI proposal received at a CPC which is not mapped with the concerned DDO/PAO/CDA of the proposer: – The CPC, after completion of the policy procurement process, shall forward the case file in original to the concerned CPC which is mapped with the DDO/PAO/CDA of the proposer and copy of acceptance letter and consent of the insurant in the format prescribed by the Department shall be sent to the DDO/PAO/CDA concerned, for deduction of subsequent premia & sending the schedule to the mapped CPC.

5. Monthly Schedules & Premium payment in case of Pay Recovery Policies: -The DDOs/PAO/CDA concerned are required to send PLI recovery schedules for the renewal premia on monthly basis to the mapped CPC in the proforma prescribed by the Department along with premia recovered from the insurant(s) in Cheque or through any other mode being accepted by the Department from time to time. The CPC shall keep watch over timely receipt of the schedules from respective DDO/PAO/CDA concerned along with premia payment and the discrepancies, if any, shall be got reconciled in consultation with DDO/PAO/CDA concerned and schedule may then be uploaded accordingly.

ANJU NIGAM, Chief General Manager (PLI)
Equivalent to Addl. Secy.

Annexure-I

Annexure-II

Instructions for PLI-Central Processing Centre (CPC)

1. The Medical Examination of Defence Personnel may be exempted provided they are in ‘Shape I’ Category and provide a copy of document along with the proposal form in confirmation of the same.

2. The first premium shall be invariably collected through cash or cheque, or any other online premium payment mode authorized by Department from time to time (except through Pay Recovery) like other Civil proponents.

3. In cases where a CPC is mapped with the Drawing & Disbursing Officer (DDO)/Pay Account Officer (PAO)/Controller of Defence Accounts (CDA) of the insurant: -If the subsequent premia deduction is desired through pay recovery mode by a Defence Personnel insurant then the CPC (where the policy is procured i.e. parent CPC) shall receive the consent of the insurant in Annexure-I, duly signed by the insurant and counter signed by the employer/immediate superior at the place of posting. The consent of insurant along with acceptance letter shall be forwarded to PAO concerned for deduction of subsequent premia.

4. In cases where a CPC is not mapped with the DDO/PAO/CDA of the insurant: -In case the CPC is mapped with a PAO, other than the Parent CPC (where the policy has been procured), then the parent CPC shall forward the consent letter in Annexure-I along with acceptance letter to the PAO concerned along with copy to the mapped CPC. Also, in such cases, parent CPCs shall invariably forward the original case file by insured post to the mapped CPC for their records under intimation to PAO concerned and the insurant.

5. The mapped CPC shall keep watch over timely receipt of the schedules from respective DDO/PAO/CDA concerned. The mapped CPC shall ensure that the name of the insurant is correctly included in the schedule and premium has been deducted & reflected in the schedule at the prescribed rates along with applicable GST.

Instruction for PAO concerned:

1. The PAO shall initiate recovery of the premium at the prescribed rates along with the applicable GST for mentioned period on the first day of that month. For example, premium for the month of August 2022 shall be deducted from the salary of the month of July 2022 and shall be paid on 1st of the month i.e., 1st of the August 2022 in this case.

2. The premium shall be deducted along with applicable GST rates. At present, during the first year of the policy (12 months), GST applicable is 4.5% of premium and second year onward (13th month onward) GST applicable is 2.25%. For e.g., if the monthly premium amount is ₹1200/- then the GST for the first 12 months (including initial premium) @ 4.5% is ₹ 54/- and from the 13th month shall be charged @ 2.25% i.e., ₹ 27/-. Therefore, in this case total premium amount to be deducted during first 12 months is ₹ 1254/- and from the 13th month onward @ of ₹ 1227/-.

3. The premium shall be deducted upto the exit month of the policy or shall be stopped at the request of the insurant, in cases where insurant changes the pay recovery mode from Pay to Cash, surrender the policy etc. In any of such cases, the insurant will inform this PAO/CDA under intimation to CPC along with his request application.

4. DDO/PAO/CDA shall deduct the premium and send the schedule well in time along with premium payment to the mapped CPC.

5. DDO/PAO/CDA shall ensure that the premium amount and GST component are shown separately in the monthly schedule to be sent to the mapped CPC.

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