Govt notifies bonus for Postal Life Insurance, Rural Postal Life Insurance schemes for FY25

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The Centre has approved a simple reversionary bonus for Postal Life Insurance Scheme and Rural Postal Life Insurance Scheme for fiscal year 2024-25. There is no change in the rate.

According to a notification, under the Postal Life Insurance Scheme, rate of bonus will be ₹76 per thousand of sum assured for whole life assurance (WLA). Similarly, for endowment assurance (EA) (including joint life and children policies), it will be ₹52 per thousand of sum assured. Anticipated endowment assurance (AEA) will fetch ₹48 per thousand of sum assured. In case of convertible whole life assurance (CWLA), whole life bonus rate would be applicable, but on conversion, endowment assurance bonus rate will be applicable.

Rate of terminal bonus will be ₹20 per sum assured of ₹10,000, subject to maximum of ₹1,000 for WLA and EA policies with term of 20 years or more.

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“The rates of bonus for the Financial Year 2024-25 will be applicable from April 1, 2024,” the notification said. Interim bonus at the rates mentioned above will also be payable for all claims arising due to maturity or death until future valuation is completed, the notification added.

Last reported number of policy holders was given for the fiscal year 2021-22 in the report of Comptroller and Auditor General (C&AG). At the end of FY22, the number of policy holders under Postal Life Insurance Scheme was over 47.5 lakh and under the Rural Postal Life Insurance Rural scheme, the number of subscribers was over ₹57.81 lakh.   

Another notification gave bonus rate for Rural Postal Life Insurance. According to the notification, the rate for WLA will be ₹60 per thousand of sum assured. Similarly, for EA (including children policy), rate will be ₹48 per thousand of sum assured.

It will be ₹45 per thousand for AEA (including gram priya policies). In case of CWLA, whole life bonus rate would be applicable, but on conversion, EA bonus rate will be applicable. Similarly, terminal bonus of ₹20 per sum assured of ₹10,000, subject to maximum of ₹1,000 for WLA and EA policies with term of 20 years or more.

Postal Life Insurance (PLI), the oldest in the country, was introduced on February 01, 1884 as a welfare scheme for the benefit of postal employees and later extended to the employees of Telegraph Department in 1888.

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In 1894, PLI extended insurance cover to female employees of P&T 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, nationalised banks, local bodies, autonomous bodies, joint ventures having a minimum of 10 per cent government/PSU stake, credit cooperative societies, etc. PLI also extends insurance cover to the officers and staff of the defence services and paramilitary forces.

Rural Postal Life Insurance (RPLI) was introduced on March 24, 1995 for rural people on recommendations of the Official Committee for Reforms in the Insurance Sector headed by ex-RBI Governor RN Malhotra. 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.