Automatic credit from SB Account - PLI/RPLI premium

To

All Heads of Circles

Addl. DG (APS)

Sub: Introduction of facility of automatic credit of PLI/ RPLI monthly premium from savings account of insured persons.

   In the last few years, there has been massive expansion of Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI). However, it has been noticed that a number of policies particularly in RPLI lapse after a while. One of the reasons for lapsation is absence of convenient ways of depositing premia of the policy(ies). As such, it was under consideration of the Department to provide facility of automatic deduction of premia from Savings Account so that (i) the policy holder(s) need not have to visit Post Office every month for depositing premia of his PLI/ RPLI policy and (ii) lapsation of PLI/ RPLI policies gets reduced.

2. The competent authority has now approved the proposal for providing the facility to the policy holder of PLI and RPLI to get premium deposited/ credited by deduction of the same directly from his Savings Account standing in Post Offices. However, this facility can be opted by only those policy holders of PLI and RPLI whose Savings Accounts are maintained in the Departmental Post Offices (GPOs, HOs, MDGs or SOs).

3. It is requested to kindly take necessary action for implementation of aforesaid scheme and wide publicity may also be given for this scheme through various publicity channels.

4. Accounting and operating procedure for automatic transfer of premium of PLI/ RPLI from Savings Accounts of the policy holder is enclosed for information and action accordingly.

5. It is further informed that till the provisions are made in the software, automatic credit of PLI/ RPLI monthly premium by deduction from savings account of the policy holder will have to be done manually.

(A.K. Poddar)

General Manager (O)

(Vide PLI Directorate letter No. 29-08/2009-LI (Pt) dated 25.10.2012)