Monopoly for securing life insurance business in India was created in favour of Life Insurance Corporation of India by passing the L.I.C. Act. 1956. The only exception was Postal Life Insurance. In fact Postal Life Insurance was started in 1884 as a welfare measure for the employees of Posts and Telegraph Department under Government of India. Seeing the popularity of its schemes, various departments of Central and State Governments were extended its benefits. Now Postal Life Insurance is open for employees of all Central and State Government Departments, Nationalized Banks, Public Sector undertakings, Financial Institutions, Local Bodies like Municipalities and Zila Parishads, Educational Institutions added by the Government etc.
Rural Postal Life Insurance
On 24th March, 1995, the benefits of Postal Life Insurance were extended to rural population of the country under the banner of Rural Postal Life Insurance.
The Postal Life Insurance and Rural Postal Life Insurance have following products : -
PLI RPLI
(a) Santosh (a) Gram Santosh
(b) Suraksha (b) Gram Suraksha
(c) Suvidha (c) Gram Suvidha
(d) Sumamgal (d) Gram Sumangal
(e) Yugal Suraksha (e) Gram Priya
(f) Children Policy (f) Children Policy
The main characteristic of the Postal Life Insurance Scheme is its simplicity and limited number of its products. The rates of premium are slightly lower and bonus raters are higher, as compared to LIC Plans. The surrender values are also more liberal. In real sense there are no marketing activities in PLI. In spite of this it has registered a modest growth.
The Postal Department is also chalking out plans to expand its operation on larger scale.
