Context

Recently, the Central Government has approved a simple reversionary bonus for the Postal Life Insurance Scheme and Rural Postal Life Insurance Scheme for fiscal year 2024-25 without changing the rate.

Bonus For Postal Life Insurance and Rural Postal Life Insurance Schemes for fiscal Year 2024-25

• The bonus rates for the Financial Year 2024-25 will be applicable from April 1, 2024. 
• Interim bonus at the notified rates will also be payable for all claims arising due to maturity or death until future valuation is completed.
• High Enrolment: At the end of FY22, the number of policyholders under the PLI Scheme was over 47.5 lakh and under the RPLI scheme, the number of subscribers was over ₹57.81 lakh. 

About Postal Life Insurance (PLI)

• Introduced in: Postal Life Insurance (PLI) is the oldest in the country and was introduced in 1884.
• Objective: A welfare scheme for the benefit of postal employees and later extended to the employees of Telegraph Department in 1888.
• Coverage and Inclusiveness: In 1894, PLI extended insurance cover to female employees of the P&T (Post & Telegraph) Department when no other insurance company covered female life. 
  • It now covers employees of Union Government and State governments, Central and State public sector undertakings, universities, government aided educational institutions, nationalized banks, local bodies, autonomous bodies, joint ventures having a minimum of 10% government/PSU stake, credit cooperative societies, etc. 
  • PLI also extends insurance cover to the officers and staff of the defense services and paramilitary forces.

Features of Postal Life Insurance (PLI):

• Superlative Returns: PLI offers the highest bonus rates, on payment of the lowest premium, when compared to any other life insurer in India.
• Modification and Appointment of Nominee: PLI schemes allows the appointment of a nominee for the policy. 
  • Also, the policyholder can change the nominee during the policy term.
• Loan Facility: The policyholder is permitted to easily avail loan against his/her policy through the Department or through any other financial institution by assigning the policy.
• Revival of Lapsed Policy: Policy can be revived on any number of occasions during the entire term of the policy. 
  • However, a period of consecutive 5 years should not have passed from the date of first unpaid premium.

About Rural Postal Life Insurance (RPLI)

• Introduced in: RPLI was introduced in 1995 for rural people on recommendations of the Official Committee for Reforms in the Insurance Sector (Malhotra Committee) headed by ex-RBI Governor RN Malhotra. 
• Objective: The prime objective of the scheme is to provide insurance coverage 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.
• There are six  life insurance plans, both in PLI and RPLI.