Types of Rural Postal Life Insurance (RPLI) came into being like a sequel to the recommendations of the Official Committee for Reforms in the Insurance Sector (Malhotra Committee). The Committee had observed in 1993 that only 22% of the insurable population in this country had been insured; life insurance funds accounted for only 10% of the gross household savings.
The Committee had observed: “The Committee understands that Rural Branch Postmasters who enjoy a position of trust in the community have the capacity to canvass life insurance business within their respective areas…..”
The Government accepted the recommendations of Malhotra Committee and allowed Postal Life Insurance to extend its coverage to the rural areas to transact life insurance business with effect from 24.3.1995, mainly because of the vast network of Post Offices in the rural areas and low cost of operations. The prime objective of the scheme is to provide insurance cover to the rural public in general and to benefit weaker sections and women workers of rural areas in particular and also to spread insurance awareness among the rural population. As on 31.03.2017, we have more than 146 Lacs policies.▪So let's talk about the types of rural postal life insurance plan details today.
Rural Postal Life Insurance (RPLI) plan Eligibility
The scheme shall cover all persons, male or female, who permanently reside in rural areas and are ordinarily residents in India to the exclusion of foreigners and non-resident Indians provided they have attained majority So let's talk about the types of rural postal life insurance plan details today ▪
Types of Rural Postal Life Insurance (RPLI) plan details
Rural Postal Life Insurance (RPLI) scheme was introduced in 1995 for the benefit of rural populace to extend insurance coverage to people living in rural areas with special emphasis on weaker sections and women workers as a result of the recommendation of the Official Committee for Reforms in the Insurance Sector (Malhotra Committee).
RPLI offers the following six types of policies:
- Whole Life Assurance (Gram Suraksha)
- Endowment Assurance (Gram Santosh)
- Convertible Whole Life Assurance (Gram Suvidha)
- Anticipated Endowment Assurance (Gram Sumangal)
- 10 Year RPLI (Gram Priya)
- Children Policy (Bal Jeevan Bima)
Salient Features of Types of Rural Postal Life Insurance (RPLI) plan details
1. Whole Life Assurance (Gram Suraksha)
This is a scheme where the assured amount with accrued bonus is payable to the insured either on attaining the age of 80 years or to his/her legal representatives or assignees on the death of the insured, whichever occurs earlier, provided the policy is in force on the date of claim.
• Minimum & Maximum age at entry: 19-55 years
• Minimum Sum Assured ₹ 10,000; Maximum ₹ 10 lac
• Loan facility after 4 years • Surrender after 3 years
• Last declared Bonus- ₹ 65/- per ₹ 1000 sum assured per year
2. Endowment Assurance (Gram Santosh)
Under this scheme the proponent is given an assurance to the extent of the sum assured and accrued bonus till he/she attains the predetermined age of maturity i.e 35,40,45,50,55,58 & 60 years of age. • In case of death of insurant, assignee, nominee or legal heir is paid the full amount of sum assured with accrued bonus
• Minimum & maximum age at entry: 19-55 years
• Minimum sum assured ₹ 10,000; Maximum ₹ 10 lac
• Loan facility after 3 years • Surrender after 3 years
• Last declared Bonus- ₹ 50/- per ₹ 1000 sum assured per year
3. Convertible Whole Life Assurance (Gram Suvidha)
A Whole Life Assurance Policy with the added feature of an option to convert to Endowment Assurance Policy at the end of five years of taking policy.
• Assurance to the extent of sum assured with accrued bonus till attainment of maturity age
• In case of death, assignee, nominee or legal heir paid the full amount of sum assured with accrued bonus
• Minimum age & Maximum age at entry: 19-45 years
• Minimum sum assured ₹ 10,000; Maximum ₹ 10 lac • Loan facility after 4 years
• Surrender after 3 years
• Last declared Bonus- ₹ 65/- per ₹ 1000 per year (for WLA policy if not converted to Endowment Assurance)
4. Anticipated Endowment Assurance (Gram Sumangal)
It is a Money Back Policy with maximum sum assured of ₹ 10 lacs, best suited to those who need periodical returns. Survival benefits are paid to the insurant periodically. Such payments will not be taken into consideration in the event of an unexpected death of the insurant. In such cases, full sum assured with accrued bonus is payable to the assignee, nominee of the legal heir.
• Policy term: 15 years and 20 years
• Minimum age 19 years; maximum age at entry 40 years for 20 years’ term policy & 45 years for 15 years’ term policy
• Survival benefits paid periodically as under: -
• 15 years Policy- 20% each on completion of 6 years, 9 years & 12 years and 40% with an accrued bonus on maturity
• 20 years Policy- 20% each on completion of 8 years, 12 years & 16 years and 40% with an accrued bonus on maturity
• Last declared Bonus- ₹ 47/- per ₹ 1000 sum assured per year
5. 10 Years Rural PLI (Gram Priya)
It is a short-term money back scheme for Rural populace only
• Insurant is given life cover to the extent of Sum Assured for 10 years.
• Survival benefits are paid after 4 years- 20% after 7 years- 20%, and after 10 years – 60% with accrued bonus
• Minimum & maximum age at entry 20 – 45 years • Minimum sum assured ₹ 10,000, maximum 10 lacs
• No interest is charged up to one year as arrears of premia in case of natural calamities like flood, drought, earthquake, cyclone etc.
• Last declared bonus ₹ 47/- per ₹ 1000/- sum assured per year.
6. Children Policy (Bal Jeevan Bima)
The salient features of this scheme are as under:
• The scheme provides life insurance coverage to children of policyholders.
• Maximum two children of the policyholder (parent) are eligible
• Children between 5- 20 years of age are eligible
• Maximum sum assured ₹ 1 lac or equal to the sum assured of the parent, whichever is less
• Policyholder(parent) should not be over 45 years of age.
• No premium to be paid on the Children Policy, on the death of policyholder (parent). Full sum assured and bonus accrued shall be paid on completion of a term
• No medical examination of child necessary. However, a child should be healthy and risk shall start from the day of acceptance of a proposal
• Attract the rate of bonus applicable for Endowment policy (Gram Santosh) i.e. last bonus rate is ₹ 50/- per ₹ 1000 sum assured per year.
Rural Postal Life Insurance is a great insurance product for rural areas which can not be imagined that you may have received information from the picture of Types of Rural Postal Life Insurance (RPLI) plan details.
MORE INFORMATION Types of Rural Postal Life Insurance (RPLI) plan details.
Did you know that post offices also offer life insurance policies? Known as the Postal Life Insurance or PLI, its eligibility was earlier restricted but the rules were recently changed to maintain a competitive edge in par with the other insurance providers of the country.
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What is Postal Life Insurance?
PLI works like any other life insurance service provider, the only difference being that it is run by the Indian postal department.
Additionally, the only offer traditional insurance policies and not term insurance or ULIPs. It was started in 1884 for the benefit of postal employees.
Apart from single insurance policies, Postal Life Insurance also manages a Group Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the Department of Posts.
There are presently 6 types of postal life insurance policies:
Apart from single insurance policies, Postal Life Insurance also manages a Group Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the Department of Posts.
There are presently 6 types of postal life insurance policies:
2. Santosh (Endowment Assurance)
In this scheme, the proponent is given an assurance to the extent of the sum assured and accrued bonus till he/she attains the pre-determined age of maturity, that is, 35, 40, 45, 50, 55, 58 and 60 years of age.
In case of death of the insured, the nominee or legal heir is paid the full amount of sum assured with an accrued bonus. Here too, the minimum and maximum ages at entry are 19 years and 55 years, respectively.
The minimum sum assured is Rs 20,000, while maximum being Rs 50 lakh. Loan facility shall be available after 4 years and the policy can be surrendered after 3 years.
3. Suvidha (Convertible Whole Life Assurance)
It is a Whole Life Assurance Policy with an option to convert to Endowment Assurance Policy at the end of five years of opting for the policy. Assurance is given to the extent of sum assured with accrued bonus till attainment of maturity age.
In case of death, the assignee, nominee or legal heir will be paid the full amount of sum assured with an accrued bonus. The minimum and maximum ages at entry are 19 years and 55 years, respectively.
The minimum sum assured is Rs 20,000, while maximum being Rs 50 lakh. Loan facility shall be available after 4 years and the policy can be surrendered after 3 years.
4. Sumangal (Anticipated Endowment Assurance)
This Money Back Policy comes with a maximum sum assured of Rs 50 lakh and is best suited to those who need periodical returns.
Survival benefits are paid to the insured periodically. These benefits will not be taken into consideration in the event of the unexpected death of the insured, but, full sum assured with accrued bonus is payable to the assignee, nominee or the legal heir. The policy terms are 15 and 20 years.
The minimum age at entry is 19 years, while the maximum age is 40 years for 20 years' term policy and 45 years for 15 years' term policy.
Survival benefits paid periodically as under:
15 years Policy- 20% each on completion of 6 years, 9 years and 12 years and 40% with an accrued bonus on maturity
20 years Policy- 20% each on completion of 8 years, 12 years and 16 years and 40% with an accrued bonus on maturity
5. Yugal Suraksha (Joint Life Assurance)
This is a Joint Life Endowment Assurance in which one of the spouses should be eligible for PLI policies. Also, a life cover to both spouses to the extent of sum assured with accrued bonus will be provided.
The minimum and maximum ages at the entry for spouses are 21 years and 45 years, respectively. The minimum sum assured is Rs 20,000, while maximum being Rs 50 lakh.
Maximum age of the elder policyholder should not be more than 45 years and the couple should be between 21 years to 45 years. Loan facility shall be available after 3 years. Death benefits will be paid to either of the survivors in the event of the death of the spouse or main policy holder.
6. Bal Jeevan Bima (Children Policy)
The scheme provides life insurance coverage to children (maximum of 2) of policyholders. Children between the ages of 5 and 20 years are eligible. Maximum sum assured will be Rs 3 lakh or equal to the sum assured of the parent, whichever is less. Policyholder (parent) should not be over 45 years of age.
Note that no premium will be paid on the Children Policy, on the death of the policyholder (parent). The complete sum assured and bonus accrued shall be paid on completion of the term.
Eligibility for Postal Life Insurance
Employees of the following Organizations are eligible.- Central Government
- Defence Services
- Para-Military forces
- State Government
- Local Bodies
- Government-aided Educational Institutions
- Reserve Bank of India
- Public Sector Undertakings
- Financial Institutions
- Nationalized Banks
- Autonomous Bodies
- Extra Departmental Agents in Department of Posts
- Employees Engaged/ Appointed on Contract basis by central/ State Government where the contract is extendable
- Employees of all scheduled Commercial Banks
- Employees of Credit Co-operative Societies and other Co-operative Societies registered with Government under the Co-operative Societies Act and partly or fully funded from the Central/ State Government/RBI/ SBI/ Nationalized Banks/ NABARD and other such institutions notified by Government
- Employees of deemed Universities an educational institutes accredited by recognized bodies such a National Assessment and Accreditation council, All India Council of Technical Education, Medical council of India etc.
- Employees (teaching/non-teaching staff) of all private educational institutions/schools/colleges etc. affiliated to recognized Boards (recognized by Centre/State Government) of Secondary/Senior Secondary education i.e. CBSE, ICSE, State Boards, Open School, etc.
- 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 Nationalised Banks and its Associate Banks, Foreign Banks, Regional Rural Banks, Scheduled Commercial Banks including Private Sector Banks etc.
- 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.
As for the Rural Postal Life Insurance (RPLI), all persons, male or female, who permanently reside in rural areas and are ordinarily residents in India to the exclusion of foreigners and non-resident Indians are eligible for the scheme, provided they have attained majority.
Source: www.postallifeinsurance.gov.in
What is Central Government Employees Group Insurance Scheme ? How CGEGIS works ?
Central Government Employees Group Insurance Scheme (CGEGIS): Ministry of Finance
Central Government Employees Group Insurance Scheme (CGEGIS) came into force from 1st January,1982. The scheme provides for two fold benefit, viz., (1) insurance cover to help their families and (2) lump sum payment to augment their resources on retirement.
Details of Central Government Employees Group Insurance Scheme (CGEGIS)
| Particulars | Description |
| Name of the Scheme | Central Government Employees Group Insurance Scheme (CGEGIS) |
| Sponsored by | Central Government |
| Funding Pattern | The scheme has two funds namely (1) Insurance Fund and (2) Savings Fund. A portion of the subscription is credited to Insurance Fund and the other portion to the Savings Fund in the ratio of 3:7. The Savings Fund will earn interest at the prescribed rate to be compounded quarterly. |
| Ministry/Department | Department of Expenditure |
| Description | Central Government Employees Group Insurance Scheme (CGEGIS) came into force from 1st January, 1982. The scheme provides for two fold benefit, viz., (1) insurance cover to help their families and (2) lump sum payment to augment their resources on retirement. |
| Beneficiaries | Individual, Family |
| Benefits | |
| Benefit Type | Material |
| Eligibility criteria | All the employees who had entered Central Government Service after 1st November,1980 will be compulsorily covered under the scheme from the date it came into force, i.e. from 1st January,1982. |
| How to Avail | The employees will be enrolled as members of the scheme only from 1st January every year. If an employee enters service on or after 2nd January in any year, he will be enrolled as a member only from 1st January of the next year. |
| Validity of the Scheme | |
| Introduced On | 01 / 01 / 1982 |
| Valid Upto | 12 / 11 / 2011 |
CENTRAL GOVERNMENT EMPLOYEES’ GROUP INSURANCE SCHEME, 1980.
5.1 The Scheme, Central Government Employees’ Group Insurance Scheme (CGEGIS)
came into force from 1st January,1982. This scheme provides for the Central Govt. employees the two fold benefit viz. (1) insurance cover to help their families and (2) lump sum payment to augment their resources on retirement.
came into force from 1st January,1982. This scheme provides for the Central Govt. employees the two fold benefit viz. (1) insurance cover to help their families and (2) lump sum payment to augment their resources on retirement.
5.2 The scheme has two funds namely (1) Insurance Fund and (2) Savings Fund. A portion of the subscription is credited to Insurance Fund and the other portion to the Savings Fund in the ratio of 3:7. The Savings Fund will earn interest at the prescribed rate to be compounded quarterly.
5.3 All these
employees’ who had entered Central Government Service after 1st November,1980 will be compulsorily covered under the scheme from the date it came into force i.e. from 1st January,1982. The employees will be enrolled as members of the scheme only from 1st January every year. If an employee enters service on or after 2nd January in any year, he will be enrolled as a member only from 1st January of the next year. However, he will be entitled to insurance cover from the actual date of entry of service till the end of that calendar year by paying monthly subscription of Rs. 5/- p.m. as premium for every Rs. 15,000/ – of the insurance cover.
employees’ who had entered Central Government Service after 1st November,1980 will be compulsorily covered under the scheme from the date it came into force i.e. from 1st January,1982. The employees will be enrolled as members of the scheme only from 1st January every year. If an employee enters service on or after 2nd January in any year, he will be enrolled as a member only from 1st January of the next year. However, he will be entitled to insurance cover from the actual date of entry of service till the end of that calendar year by paying monthly subscription of Rs. 5/- p.m. as premium for every Rs. 15,000/ – of the insurance cover.
Similarly, on regular promotion of a member of a lower Group to a higher Group after 1st January in a year, his subscription will be raised from the 1st January of the next year.
Note :- If an employee once admitted to a higher Group is subsequently reverted to the lower Group for one reason or the other, he will continue to subscribe at the same rate as that of higher Group.
5.4 Contract employees, persons on deputation from State Government Public Sector Undertakings, or other autonomous organisations locally recruited staff in the Missions abroad, casual labourer, part-time and ad-hoc employees will not be covered by the scheme. It will also not apply to persons recruited in the Central Government after attaining the age of 50 years.
5.5 Re-employed Defence personnel availing of the extended insurance cover under the Group Insurance Scheme applicable to the members of Armed Forces shall not be eligible to become members of this Scheme until expiry of the extended insurance cover.
5.6 Subscription at the appropriate rate should be recovered by the DDO from each member every month irrespective of whether the member is on duty, leave or under suspension. In the case of absence on Extra Ordinary leave, subscription due should be recovered in arrears in not more than 3 installments after the member rejoins duty, along with appropriate interest thereon. In the event of death of a member during Extra-ordinary leave, the DDO should recover arrears in subscription along with interest, from the payment to the nominee admissible under the scheme.
Note:- Subscription is payable till the end of service including the month in which an employee retires, dies or is removed from service. If an employee dies during a month before recovery of subscription for that month, his dues will be paid after deducting the subscription.
5.7 In the case of members proceeding on foreign service, the recovery of subscription would be watched by the PAO concerned in the same manner as recovery of leave salary and pension contributions is watched.
5.8 The Head of Office should obtain Nomination(s) in Form 7 or Form 8, as the case may be, from all members without delay, and after counter signature, have them pasted in their service books.
5.9 The Head of Office should ensure that Group-wise register of members is maintained in Form 9 and kept up-to-date. This register shall be sent to the DDO concerned once a year to verify whether appropriate subscription are being recovered from all employees who have joined the Insurance Fund or both the Insurance Fund and the Savings Fund under the Scheme and to record a certificate to this effect.
Central Government Employees Group Insurance Scheme (CGEGIS) Rules Eligibility Table after 7th Pay Commission
Many central government employees get a wide range of benefits from the Central Government Employees Group Insurance Scheme (CGEGIS). A portion of monthly contribution from every employee of offices that come under the central government throughout the service and the overall interest for these contributions plays the major role in the CGEGIS.
Below listed table describes the basic things about the central government CGEGIS plan.
| S. No | Things needed to know about Central Government Employees Group Insurance Scheme (CGEGIS) | Detailed Explanation |
| 1 | The Insurance Scheme for government employees sponsored by whom? | The Central Government of India sponsors for CGEGIS, which handles by Department of Expenditure. |
| 2 | Who are all the beneficiaries under this CGEGIS | All central government employees and their respective family members are eligible to get merged with this insurance scheme |
| 3 | What are the monthly deduction details under this CGEGIS | At present central government employees getting deduction of Rs.120 from their monthly salary and it is be increased to Rs. 5000 as per proposal place by central government |
| 4 | Insured amount under CGEGIS | Current the insured amount is Rs. 1,20,000 and government plans to increase the sum amount to Rs. 50,00,000 |
Once people have entered the central government service, they have to apply for this scheme through the Form No. 4 to the head of office. The head of office is responsible for sanctioning the subscriber’s accumulation payment in the segment of Savings Fund along with interest. This fund can be received by the central government employees after their retirement.
In the event of death of central government employees, the CGEGIS is available to their family. All payments associated with this insurance scheme are as per the Table of Benefit at all times. Central government employees have to keep focusing on the Table of Benefit and make an informed decision about how they can make use of this CGEGIS.
Central Government Employees Group Insurance Scheme (CGEGIS) Important Factors:
- There are two types of funding patterns associated with the CGEGIS. The first type is insurance fund. The second type is savings fund.
- The ratio in which a portion of the central government employees salary is allotted for the insurance and savings funds is 3:7.
- Each contribution to the savings fund earns interests at a certain rate specified by the central government. The interest rate is compounded quarterly.
- The Department of Expenditure manages every aspect of the CGEGIS from the beginning to end of this scheme for every employee of the central government offices.
CGEGIS Table 1 2016 – Subscription of Rs.10 / month per unit from 1.1.1982 to 31.12.1989
Eligibility to join CGEGIS:
Every regular employee of the central government is eligible for the CGEGIS. Employees who are joining the service on any day and month of a year are considered as the member of CGEGIS from the January 1 of a year they joined.
On the other hand, they will be entitled for this insurance cover from the actual date of joining the service to the end of a year. They will be fully qualified member of this insurance scheme from the January 1 to the next year.
Bear in mind that re-employed defense personnel are not eligible for the CGEGIS until the expiry of insurance cover from the Group Insurance Scheme for Armed Forces. Once they get their existing insurance cover expired, they can meet the requirements for the CGEGIS easily.
Benefits under CGEGIS:
- There are many benefits for central government employees by the CGEGIS. The following details explain these benefits.
- The amount of contributions to the savings fund together with the overall interest will be paid to the central government employee when they leave their job or retire.
- Nominee or hires of the central government employees will receive the amount of insurance cover from this group belonged on the date of death and savings fund’s accumulation in case of the death of employees.
- If central government employees die before they were enrolled as members of CGEGIS, nominee or heirs of these employees will get the insurance amount only.
- Central government employees obtain housing loans by assigning their accumulation in the saving fun and the insurance cover. They cannot withdraw, loan or advance from their savings fund and insurance fund.
Central Government Employees Group Insurance Scheme (CGEGIS) change after 7th Pay Commission
- The 7th pay commission enhanced the CGEGIS that has remained unchanged for a long time. The latest enhancements in the CGEGIS attract and satisfy every employee of the central government.
- The level of employee from 1 to 5, 6 to 9 and 10 and above paid 30, 60 and 120 per month for the insurance amount 30000, 60000 and 120000 respectively so far.
- The 7th pay commission proposed that the level of employee 1 to 5, 6 to 9 and 10 and above can pay 1500, 2500 and 5000 per month for the insurance amount 1500000, 2500000 and 5000000 respectively hereafter.
