Amendment to Rule 16 (i) and Rule 61 of Post Office Life Insurance Rules, 2011

F.No.25-04/2021-LI
Ministry of Communications
Department of Posts
(Directorate of Postal Life Insurance)
Chanakyapuri PO Complex, New Delhi-110021

Dated: 27.04.2021

All Head of Circles

Sub: Amendment to Rule 16 (i) and Rule 61 of Post Office Life Insurance Rules, 2011.

The provisions in connection with settlement of claims arising due to death of insurant by suicide i.e. Rule 16 (i) and Rule 61 of Post Office Life Insurance (POLI) Rules, 2011 has been amended. The amendment provides as follows:

(i) payment of 80% of premia paid or surrender value, whichever is higher, in case of suicide committed before expiry of 1 year from date of acceptance or date of revival, whichever is later, and

(ii) treating suicide cases at par with other death claim cases if suicide committed after 1 year from date of acceptance or date of revival, whichever is later.

2. Accordingly, Gazette Notification amending Rules, 16 (i) and Rule 61 of POLI Rules, 2011 is enclosed (Annexure-I). Illustrations are enclosed as Annexure-ll.

3. This instruction may be widely circulated in the Circle for compliance.

This issues with the approval of CGM (PLI).

(Shiv Kumary)

Assistant Director

Copy to:-

1-2 Sr. PPS to Secretary (Posts)/Sr. PPS to Director General Postal Services.

3-9 PPS/PS to Addl. DG (Co-ordination)/Member (Banking)/Member (0)/ Member (P)/ Member (Planning & HRD)/ Member (PLI)/Member (Tech)

10-11 Sr. Deputy Director General (Vigilance) & CVO/Sr. Deputy Director General (PAF)

12-13 CGM (BD)/CGM (Parcel)

14. All DDGs, Dak Bhawan

15-40 All CPMGs/Addl. DG, APS/Director, RAKNPA, Ghaziabad/ CGM (CEPT)

41-47 All Director, PTCs/ Director, PLI, Kolkata

48-60 All Officers/Officials of PLI Directorate

Illustrations

Basic details of the illustrated Policy:

Name of the Policy Holder	Mr. X
Age at next birthday	22 years
Type of Policy and Term	PLI EA/60
Sum Assured	% 10,00,000/-
Monthly Premium	%1950/-
Date of Acceptance	20.03.2021

Now claim admissibility and calculation in various scenarios is as follows:

Scenario I: - Mr. ‘X’ committed suicide before expiry of 1 year from the date of acceptance of the proposal.

Premium paid upto	Aug-21
Date of Suicide	29.08.2021
Claim Admissible	Yes
Total Premium paid	6x Rs. 1950 = Rs. 11,700/-
Claim Admissible	80% of premium paid i.e. 80% of Rs. 11,700/- = >Rs. 9,360/- (as 1 year has not passed since acceptance of proposal)

Scenario II: - Mr. ‘Xx’ committed suicide after expiry of 1 year from the date of acceptance of the proposal.

Premium paid upto	May-22
Date of Suicide	28.05.2022
Claim Admissible	Yes
Total Premium paid	15 x Rs. 1950 = Rs. 29,250/-
Claim Admissible	Sum Assured of Rs. 10 lakhs plus accrued bonus (to be treated at par with normal death claim as 1 year has passed since acceptance of proposal)

Scenario III: - Mr. ‘X’ committed suicide before expiry of 1 year from the date of revival of the policy.

Date of Revival	Jan-27
Premium paid upto	Oct-27
Date of Suicide	18.10.2027
Claim Admissible	Yes
Total Premium paid	80 x Rs. 1950 = Rs. 1,56,000/-
Claim Admissible	80% of Rs. 1,56,000/- ie. Rs, 1,24,800/- or Surrender Value, whichever is higher (as 1 year has not passed since revival of policy)

d. Scenario IV: - Mr. ‘xX’ committed suicide after expiry of 1 year from the date of revival of the policy.

Date of Revival	Jan-27
Premium paid upto	Oct-28
Date of Suicide	18.10.2028
Claim Admissible	Yes
Total Premium paid	92 x Rs. 1950 = Rs. 1,79,400/-
Claim Admissible	Sum Assured of Rs. 10 lakhs plus accrued bonus (to be treated at par with normal death claim as 1 year has passed since revival of policy)

Illustration V: - Mr. ‘X’ committed suicide before expiry of 1 year from the date of acceptance of the proposal.

Premium paid upto	Apr-21
Date of Suicide	02.04.2021
Claim Admissible	No
Total Premium paid	2x Rs, 1950 = Rs. 3,900/-
Claim Admissible	No claim admissible, as suicide committed before amendment of Rule 61.

Post Office Calculators