POST OFFICE SAVING SCHEMES

Interest payable, Rates, Periodicity etc. Minimum Amount for opening of account and
maximum balance that can be retained
4.0% per annum on individual / joint accounts Minimum INR 20/- for opening
Salient features including Tax Rebate
o Account can be opened by cash only
o Minimum balance to be maintained in a non-Cheque facility account is INR 50/-
o Cheque facility available if an account is opened with INR 500/- and for this purpose minimum balance of INR
500/-in an account is to be maintained
o Cheque facility can be taken in an existing account also
o Interest earned is Tax Free up to INR 10,000/- per year from financial year 2012-13
o Nomination facility is available at the time of opening and also after opening of account
o Account can be transferred from one post office to another
o One account can be opened in one post office
o Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the
account
o Joint account can be opened by two or three adults
o At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active
o Single account can be converted into Joint and Vice Versa
o Minor after attaining majority has to apply for conversion of the account in his name
o Deposits and withdrawals can be done through any electronic mode in CBS Post offices.
o ATM facility is available

5-YEAR POST OFFICE RECURRING DEPOSIT ACCOUNT (RD)

Interest payable, Rates, Periodicity etc. Minimum Amount for opening of account and
maximum balance that can be retained
From 01.07.2019, interest rates are as follows:- Minimum INR 10/- per month or any amount in
o 7.2 % per annum (quarterly compounded) multiples of INR 5/-. No maximum limit.
o On maturity INR 10/- account fetches INR 725.05 . Can be

continued for another 5 years on year to year basis

Salient features including Tax Rebate

o Account can be opened by cash / Cheque and in case of Cheque the date of deposit shall be date of presentation of
Cheque
o Nomination facility is available at the time of opening and also after opening of account
o Account can be transferred from one post office to another
o Any number of accounts can be opened in any post office
o Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the
account
o Joint account can be opened by two adults
o Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month
and up to last working day of next month if account is opened between 16th day and last working day of a
calendar month.
o If subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, default fee @
0.05 rs for every 5 rupee shall be charged. After 4 regular defaults, the account becomes discontinued and can be
 revived in two months but if the same is not revived within this period, no further deposit can be made.
o *If in any RD account, there is monthly default amount , the depositor has to first pay the defaulted monthly

deposit with default fee and then pay the current month deposit. This will be applicable for both CBS and non
CBS Post offices.
o There is rebate on advance deposit of at least 6 installments

o Single account can be converted into Joint and Vice Versa

o Minor after attaining majority has to apply for conversion of the account in his name

o One withdrawal up to 50% of the balance allowed after one year. It may be repaid in one lumpsum along with

interest at the prescribed rate at any time during the currency of the account
Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor
subject to fulfillment of certain conditions.
In case of deposits made in RD accounts by Cheque, date of credit of Cheque into Government accounts shall be
treated as date of deposit.

POST OFFICE TIME DEPOSIT ACCOUNT (TD)

Interest payable, Rates, Periodicity etc. Minimum Amount for opening of account and
maximum balance that can be retained
Interest payable annually but calculated quarterly. Minimum INR 200/- and in multiple thereof. No
maximum limit.

Interest rates From 01.07.2019

Period Rate
1yr., 2yr., 3yr.A/c 6.9%
5yr.A/c 7.7%
Salient features including Tax Rebate

o Account may be opened by individual

o Account can be opened by cash /Cheque and in case of Cheque the date of realization of C heque in Govt. account
shall be date of opening of account
o Nomination facility is available at the time of opening and also after opening of account
o Account can be transferred from one post office to another
o Any number of accounts can be opened in any post office
o Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the
account
o Joint account can be opened by two adults.
o Single account can be converted into Joint and Vice Versa
o Minor after attaining majority has to apply for conversion of the account in his name
o *In CBS Post offices ,when any TD account is matured, the same TD account will be automatically renewed for
the period for which the account was initially opened . Example 2 Years TD account will be automatically
renewed for 2 Years. Interest rate applicable on the day of maturity will be applied
o The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from
1.4.2007.
 POST OFFICE MONTHLY INCOME SCHEME ACCOUNT (MIS)
Interest payable, Rates, Periodicity etc. Minimum Amount for opening of account and maximum
balance that can be retained
From 01.07.2019, interest rates are as follows:- o In multiples of INR 1500/-
o 7.6 % per annum payable monthly. o Maximum investment limit is INR 4.5 lakh in single account
and INR 9 lakh in joint account
o An individual can invest maximum INR 4.5 lakh in MIS
(including his share in joint accounts)
o For calculation of share of an individual in joint account, each
joint holder have equal share in each joint account.

Salient features including Tax Rebate

o Account may be opened by individual.
o Account can be opened by cash/Cheque and in case of Cheque the date of realization of Cheque in Govt. account
shall be date of opening of account.
o Nomination facility is available at the time of opening and also after opening of account.
o Account can be transferred from one post office to another.
o Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance
in all accounts.
o Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the
account.
o Joint account can be opened by two or three adults.
o All joint account holders have equal share in each joint account.
o Single account can be converted into Joint and Vice Versa.

o Minor after attaining majority has to apply for conversion of the account in his name.

o Maturity period is 5 years from 1.12.2011.

o Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or

ECS./In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account
standing at any CBS Post offices.
o Can be prematurely en-cashed after one year but before 3 years at the discount of 2% of the deposit and after 3

years at the discount of 1% of the deposit. (Discount means deduction from the deposit.)
A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07
and up to 30.11.2011. No bonus is payable on the deposits made on or after 1.12.2011.

Senior Citizen Savings Scheme (SCSS)

Interest payable, Rates, Periodicity etc. Minimum Amount for opening of
account and maximum balance that
can be retained
From 01.07.2019 , interest rates are as follows:- There shall be only one deposit in the
o 8.6 % per annum, payable from the date of deposit of 31st March/30th account in multiple of INR.1000/-
Sept/31st December in the first instance & thereafter, interest shall be maximum not exceeding INR 15 lakh.
payable on 31st March, 30th June, 30th Sept and 31st December.
Salient features including Tax Rebate
o An individual of the Age of 60 years or more may open the account.
o An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under
VRS can also open account subject to the condition that the account is opened within one month of receipt of
retirement benefits and amount should not exceed the amount of retirement benefits.
o Maturity period is 5 years.
o A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).

o Account can be opened by cash for the amount below INR 1 lakh and for INR 1 Lakh and above by C heque only.

o In case of Cheque, the date of realization of Cheque in Govt. account shall be date of opening of account.

o Nomination facility is available at the time of opening and also after opening of account.

o Account can be transferred from one post office to another

o Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance

in all accounts.
o Joint account can be opened with spouse only and first depositor in Joint account is the investor.

o Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or

Money Order.
o In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and

January. It will be applicable at all CBS Post Offices.

o *Quarterly interest of SCSS accounts standing at CBS Post offices can be credited in any savings account

standing at any other CBS post offices.

o Premature closure is allowed after one year on deduction of an amount equal to1.5% of the deposit & after 2 years

1% of the deposit.
o After maturity, the account can be extended for further three years within one year of the maturity by giving

application in prescribed format. In such cases, account can be closed at any time after expiry of one year of
extension without any deduction.
o TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a.

Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
 15 YEAR PUBLIC PROVIDENT FUND ACCOUNT (PPF )
Interest payable, Rates, Periodicity etc. Minimum Amount for opening of
account and maximum balance that
can be retained
From 01.07.2019, interest rates are as follows:- Minimum INR. 500/- Maximum INR.
o 7.9 % per annum (compounded yearly). 1,50,000/- in a financial year.
Deposits can be made in lump-sum or in
12 installments.

Salient features including Tax Rebate

o An individual can open account with INR 100/- but has to deposit minimum of INR 500/- in a financial year and
maximum INR 1,50,000/-
o Joint account cannot be opened.
o Account can be opened by cash / Cheque and In case of Cheque, the date of realization of Cheque in Govt.
account shall be date of opening of account.
o Nomination facility is available at the time of opening and also after opening of account. Account can be
transferred from one post office to another.
o The subscriber can open another account in the name of minors but subject to maximum investment limit by
adding balance in all accounts.
o Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
o Maturity value can be retained without extension and without further deposits also.
o Premature closure is not allowed before 15 years.
o Deposits qualify for deduction from income under Sec. 80C of IT Act.
o Interest is completely tax-free.
o Withdrawal is permissible every year from 7th financial year from the year of opening account.
o Loan facility available from 3rd financial year.
No attachment under court decree order.
The PPF account can be opened in a Post Office which is Double handed and above.

NATIONAL SAVINGS CERTIFICATES (NSC)

Scheme Interest payable, Minimum Salient features including Tax Rebate
Rates, Periodicity Amount for
etc. opening of
account and
maximum
balance that can
be retained
National Savings Certificates From 01.07.2019, Minimum of Rs. o A single holder type certificate can
(NSC) interest rates are as 100/- and in be purchased by, an adult for
follows:- multiples of Rs. himself or on behalf of a minor or
5 Years National Savings o 7.9 % 100/- No by a minor.
Certificate (VIII Issue) Maximum Limit o Deposits qualify for tax rebate under
compounded
annually but Sec. 80C of IT Act.
payable at o The interest accruing annually but
maturity. deemed to be reinvested under
o INR 100/- Section 80C of IT Act.
grows to INR *In case of NSC VIII , transfer of
146.9 3 after certificates from one person to another
5 years can be done only once from date of issue
to date of maturity.
*At the time of transfer of Certificates
from one person to another, old
 certificates will not be discharged. Name
of old holder shall be rounded and name
of new holder shall be written on the old
certificate and on the purchase
application(in case of non CBS Post
offices) under dated signatures of the
authorized Postmaster along with his
designation stamp and date stamp of Post
office.

Kisan Vikas Patra (KVP )

Interest payable, Rates, Periodicity etc. Minimum Amount for opening of account and
maximum balance that can be retained
From 01.07.2019, interest rates are as follows:- Minimum of Rs. 1000/- and in multiples of Rs.
o 7.6 % compounded annually 1000/- No Maximum Limit.
o Amount Invested doubles in 112 months (9 years & 4

months)

Salient features
o Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.
o KVP can be purchased from any Departmental Post office.
o Facility of nomination is available.
o Certificate can be transferred from one person to another and from one post office to another.
o Certificate can be en cash after 2 & 1/2 years from the date of issue.
 SUKANYA SAMRIDDHI ACCOUNTS

Interest payable, Rates, Periodicity etc. Minimum Amount for opening of account and maximum balance that
can be retained
Rate of interest 8.4% Per Annum(with Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year.
effect from 01-07-2019 ),calculated on Subsequent deposit in multiple of INR 100/- Deposits can be made in
yearly basis ,Yearly compounded. lump-sum No limit on number of deposits either in a month or in a
Financial year
Salient features including Tax Rebate
o A legal Guardian/Natural Guardian can open account in the name of Girl Child.
o A guardian can open only one account in the name of one girl child and maximum two accounts in the name of
two different Girl children.
o Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one
year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open
account up to1.12.2015.
o If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived
with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.
o Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be
taken after Account holder’s attaining age of 18 years.
o Account can be closed after completion of 21 years.
o Normal Premature closure will be allowed after completion of 18 years /provided that girl is married.
 POSTAL LIFE INSURANCE
Introduction

Postal Life Insurance (PLI) was introduced on 1st February 1884 with the express approval of the Secretary of State (for India) to Her
Majesty, the Queen Empress of India. It was essentially a scheme of State Insurance mooted by the then Director General of Post
Offices, Mr. F.R. Hogg in 1881 as a welfare scheme for the benefit of Postal employees and later extended to the employees of
Telegraph department in 1888. In 1894, PLI extended insurance cover to female employees of P & T Department at a time when no
other insurance company covered female lives. It is the oldest Life insurer in this country.
In the beginning, the upper limit of life insurance was only ₹ 4000/- which has now increased to ₹ 50 lacs (Rupees Fifty Lacs) and it will
be effective as and when notified through a Gazette notification for all schemes combined - Endowment Assurance and Whole Life
Assurance. Over the years, PLI has grown substantially from a few hundred policies in 1884 to more than 46 Lacs policies as on
31.03.2017. It now covers employees of Central 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% Govt./PSU stake, credit cooperative societies etc. PLI also extends the facility of insurance to the officers and staff of the Defence
services and Paramilitary forces. Apart from single insurance policies, Postal Life Insurance also manages a Group Insurance scheme for
the Extra Departmental Employees (Gramin Dak Sevaks) of the Department of Posts.
PLI is an exempted insurer under Section 118 (c) of the Insurance Act of 1938. It is also exempted under Section 44 (d) of LIC Act,
1956.

Insurance Plans in PLI

PLI offers the following six types of policies:

 Whole Life Assurance (Suraksha)
 Endowment Assurance (Santosh)
 Convertible Whole Life Assurance (Suvidha)
 Anticipated Endowment Assurance (Sumangal)
 Joint Life Assurance (Yugal Suraksha)
 Children Policy (Bal Jeevan Bima)
 Salient Features of PLI policies

1. Whole Life Assurance (Suraksha)

This is a scheme where the assured amount with accrued bonus is payable to the insured either on attaining the age of 80 years, or to
his/her legal representatives or assignees on death of the insured, whichever occurs earlier, provided the policy is in force on the date of
claim.
 Minimum & Maximum age at entry: 19-55 years
 Minimum Sum Assured ₹ 20,000; Maximum ₹ 50 lac
 Loan facility after 4 years
 Surrender after 3 years
 Last declared Bonus- ₹ 85/- per ₹ 1000 sum assured per year
2.Endowment Assurance (Santosh)
Under this scheme the proponent is given an assurance to the extent of the sum assured and accrued bonus till he/she attains the pre-
determined age of maturity i.e 35,40,45,50,55,58 & 60 years of age.
In case of death of insurant, assignee, nominee or legal heir is paid full amount of sum assured with accrued bonus
 Minimum & maximum age at entry: 19-55 years
 Minimum sum assured ₹ 20,000; Maximum ₹ 50 lac
 Loan facility after 3 years
 Surrender after 3 years
 Last declared Bonus – ₹ 58/- per ₹ 1000 sum assured per year
3.Convertible Whole Life Assurance (Suvidha)
This is a Whole Life Assurance Policy with the added feature of an option to convert to Endowment Assurance Policy at the end of five
years of taking policy.
 Assurance to the extent of sum assured with accrued bonus till attainment of maturity age
 In case of death, assignee, nominee or legal heir paid full amount of sum assured with accrued bonus
 Minimum age & Maximum age at entry: 19-50 years
 Minimum sum assured ₹ 20,000; Maximum ₹ 50 lac
 Loan facility after 4 years
 Surrender after 3 years
 Last declared Bonus- ₹ 85/- per ₹ 1000 per year (for WLA policy if not converted to Endowment Assurance)
 4. Anticipated Endowment Assurance (Sumangal)
It is a Money Back Policy with maximum sum assured of ₹ 50 lacs, best suited to those who need periodical returns. Survival benefits
are paid to the insurant periodically. Such payments will not be taken into consideration in the event of unexpected death of the insurant.
In such cases, full sum assured with accrued bonus is payable to the assignee, nominee of legal heir.
 Policy term: 15 years and 20 years
 Minimum age 19 years; maximum age at entry 40 years for 20 years’ term policy & 45 years for 15 years’ term policy
 Survival benefits paid periodically as under: -
 15 years Policy- 20% each on completion of 6 years, 9 years & 12 years and 40% with accrued bonus on maturity
 20 years Policy- 20% each on completion of 8 years, 12 years & 16 years and 40% with accrued bonus on maturity
 Last declared bonus -₹ 53/- per ₹ 1000 sum assured per year
5.Joint Life Assurance (Yugal Suraksha)
It is a Joint Life Endowment Assurance in which one of the spouses should be eligible for PLI policies.
 Life cover to both spouses to the extent of sum assured with accrued bonus.
 Minimum sum assured ₹ 20,000; Maximum ₹ 50 lac
 Minimum age & Maximum age at entry of spouses: 21-45 years
 Maximum Age of the elder policy holder should not be more than 45 years & the couple should be between 21 years to 45 years.
 Loan facility after 3 years
 Loan after 3 years
 Death benefits are paid to either of the survivors in the event of death of spouse or main policy holder
 Last declared Bonus- ₹ 58/- per ₹ 1000 sum assured per year
6. Children Policy (Bal Jeevan Bima)
The salient features of this scheme are as under:
 The scheme provides life insurance cover to children of policy holders.
 Maximum two children of policy holder (parent) are eligible
 Children between 5- 20 years of age are eligible
 Maximum sum assured ₹ 3 lac or equal to the sum assured of the parent, whichever is less
 Policy holder(parent) should not be over 45 years of age.
 No premium to be paid on the Children Policy, on the death of policy holder (parent). Full sum assured and bonus accrued shall be paid
on completion of term
 Policy holder (parent) shall be responsible for payment of Children policy
 Attract the rate of bonus applicable for Endowment policy (Santosh) i.e. last bonus rate is ₹ 58/- per ₹ 1000 sum assured per year.
Benefits

PLI is the only insurer in the Indian Life Insurance market today which gives the higher return (bonus) with the low premium charged
for any product in the market.
A PLI/RPLI policy holder may also get following facilities :-
 Change of nomination.
 The insurant can take loan by pledging his/her policy to Heads of the Circle on behalf of President of India, provided the policy has
completed 3 years in case of Endowment Assurance and 4 years in case of Whole Life Assurance. The facility of assignment is also
available.
 Assignment of Policy to any Financial Institution for taking loan.
 Revival of his/her lapsed policy. Policy lapses after 6 unpaid premia if it remained in force for less than 3 years and after 12 unpaid
premia if it remained in force for more than 3 years.
 Issue of Duplicate Policy Bond in case the original Policy Bond is lost, burnt or torn/mutilated.
 Conversion from Whole Life Assurance -Gram Suraksha to Endowment -Gram Santosh Assurance and from Endowment Assurance -
Gram Santosh to other Endowment Assurance-Gram Santosh with reduced sum assured or reduced term as per rules.

RURAL POSTAL LIFE INSURANCE

Introduction

Rural Postal Life Insurance (RPLI) came into being as a sequel to the recommendations of the Official Committee for Reforms in the
Insurance Sector (Malhotra Committee). The Committee had observed in 1993 that only 22% of the insurable population in this country
had been insured; life insurance funds accounted for only 10% of the gross household savings. The Committee had observed:
“The Committee understands that Rural Branch Postmasters who enjoy a position of trust in the community have the capacity to canvass
life insurance business within their respective areas…..”
 The Government accepted the recommendations of Malhotra Committee and allowed Postal Life Insurance to extend its coverage
to the rural areas to transact life insurance business with effect from 24.3.1995, mainly because of the vast network of Post Offices in
the rural areas and low cost of operations. The prime objective of the scheme is to provide insurance cover 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. As on 31.03.2017, we have more than 146 Lacs policies.
Insurance Plans in RPLI

Rural Postal Life Insurance (RPLI) scheme was introduced in 1995 for the benefit of rural populace to extend insurance cover to people
living in rural areas with special emphasis on weaker sections and women workers as a result of the recommendation of the Official
Committee for Reforms in the Insurance Sector (Malhotra Committee).
POLICIES UNDER RPLI

RPLI offers the following six types of policies:

 Whole Life Assurance (Gram Suraksha)
 Endowment Assurance (Gram Santosh)
 Convertible Whole Life Assurance (Gram Suvidha)
 Anticipated Endowment Assurance (Gram Sumangal)
 10 Year RPLI (Gram Priya)
 Children Policy (Bal Jeevan Bima)
Salient Features of Rural PLI policies

1. Whole Life Assurance (Gram Suraksha)

This is a scheme where the assured amount with accrued bonus is payable to the insured either on attaining the age of 80 years, or to
his/her legal representatives or assignees on death of the insured, whichever occurs earlier, provided the policy is in force on the date of
claim.
 Minimum & Maximum age at entry: 19-55 years
 Minimum Sum Assured ₹ 10,000; Maximum ₹ 10 lac
 Loan facility after 4 years
 Surrender after 3 years
 Last declared Bonus- ₹ 65/- per ₹ 1000 sum assured per year
 2.Endowment Assurance (Gram Santosh)
Under this scheme the proponent is given an assurance to the extent of the sum assured and accrued bonus till he/she attains the pre-
determined age of maturity i.e 35,40,45,50,55,58 & 60 years of age.
 In case of death of insurant, assignee, nominee or legal heir is paid full amount of sum assured with accrued bonus
 Minimum & maximum age at entry: 19-55 years
 Minimum sum assured ₹ 10,000; Maximum ₹ 10 lac
 Loan facility after 3 years
 Surrender after 3 years
 Last declared Bonus- ₹ 50/- per ₹ 1000 sum assured per year
3. Convertible Whole Life Assurance (Gram Suvidha)
A Whole Life Assurance Policy with the added feature of an option to convert to Endowment Assurance Policy at the end of five years
of taking policy.
 Assurance to the extent of sum assured with accrued bonus till attainment of maturity age
 In case of death, assignee, nominee or legal heir paid full amount of sum assured with accrued bonus
 Minimum age & Maximum age at entry: 19-45 years
 Minimum sum assured ₹ 10,000; Maximum ₹ 10 lac
 Loan facility after 4 years
 Surrender after 3 years
 Last declared Bonus- ₹ 65/- per ₹ 1000 per year (for WLA policy if not converted to Endowment Assurance)
4.Anticipated Endowment Assurance (Gram Sumangal)
It is a Money Back Policy with maximum sum assured of ₹ 10 lacs, best suited to those who need periodical returns. Survival benefits
are paid to the insurant periodically. Such payments will not be taken into consideration in the event of unexpected death of the insurant.
In such cases, full sum assured with accrued bonus is payable to the assignee, nominee of legal heir.
 Policy term: 15 years and 20 years
 Minimum age 19 years; maximum age at entry 40 years for 20 years’ term policy & 45 years for 15 years’ term policy
 Survival benefits paid periodically as under: -
 15 years Policy- 20% each on completion of 6 years, 9 years & 12 years and 40% with accrued bonus on maturity
 20 years Policy- 20% each on completion of 8 years, 12 years & 16 years and 40% with accrued bonus on maturity
 Last declared Bonus- ₹ 47/- per ₹ 1000 sum assured per year
 5. 10 Years Rural PLI (Gram Priya)
It is a short term money back scheme for Rural populace only
 Insurant is given life cover to the extent of Sum Assured for 10 years.
 Survival benefits are paid after 4 years- 20% after 7 years- 20%, and after 10 years – 60% with accrued bonus
 Minimum & maximum age at entry 20 – 45 years
 Minimum sum assured ₹ 10,000, maximum 10 lacs
 No interest is charged upto one year as arrears of premia in case of natural calamities like flood, drought, earthquake, cyclone etc.
 Last declared bonus ₹ 47/- per ₹ 1000/- sum assured per year.
6. Children Policy (Bal Jeevan Bima)
The salient features of this scheme are as under:
 The scheme provides life insurance cover to children of policy holders.
 Maximum two children of policy holder (parent) are eligible
 Children between 5- 20 years of age are eligible
 Maximum sum assured ₹ 1 lac or equal to the sum assured of the parent, whichever is less
 Policy holder(parent) should not be over 45 years of age.
 No premium to be paid on the Children Policy, on the death of policy holder (parent). Full sum assured and bonus accrued shall be paid
on completion of term
 No medical examination of child necessary. However, child should be healthy and risk shall start from day of acceptance of proposal
 Attract the rate of bonus applicable for Endowment policy (Gram Santosh) i.e. last bonus rate is ₹ 50/- per ₹ 1000 sum assured per year
GDSGIS
The salient features of the scheme are as follows :-
1.Short title and commencement.
 This scheme may be called the Gramin D ak Sevaks’ Group Insurance scheme, 2010.
 It shall come into force on the date of its publication in the Official Gazette.
2. Application. – The Scheme shall apply to all Gramin Dak Sevaks of the Department of Posts.
3. Objective of Scheme. – The scheme is intended to provide for the Gramin Dak Sevaks of the Department of Posts, at a low cost and
on a wholly contributory and self-financing basis, the twin benefits of an Insurance Cover to help their families in the event of death
while in service and a lumpsum payment to augment their resources on completion of service in the Department.
 4.Membership.
 The Schemes shall be compulsory for all those Gramin Dak Sevaks employed on or after the date of commencement of the Scheme.
 The Scheme shall be optional for those Gramin Dal Sevaks in service prior to the date of commencement of the Scheme. The employee
shall give his option adopting the Scheme in Form – I or Form – II, as the case may be, appended to this scheme.
 The option once exercised or not exercised shall be treated as final and no further choice shall be available.
 The last date for exercising option to join or option not to join the Scheme by the Gramin Dak Sevaks employed before the date of
commencement of the scheme is 31st July, 2010.
 The minimum age of entry to the Scheme shall be Nineteen years and maximum shall be Fifty years of age as on 1st May, 2010.
5. Recovery of monthly subion. –
 In order to provide an Insurance Cover of Fifty thousand rupees, a monthly subion of Fifty rupees shall be deducted from the salary bills
of Gramin Dak Sevaks.
 The subion shall be recovered every month including the month in which Gramin Dak Sevaks ceases to be in employment on account of
retirement, death, resignation, removal, etc., from service.
 For the periods when the Gramin Dak Sevaks is not on duty, he shall be personally responsible to credit his premia in cash and in case of
default, the arrear subion with the interest at the rate of one rupee per month of default shall be recovered from the salary of the Gramin
Dak Sevak as and when he joins duty and draws salary.
 If Gramin Dak Sevak dies when not on duty before recovery of premium, the arrears of subion due from him shall be recovered with
interest as indicated at (3) above from the amount of benefits payable to his legal heir or nominee.
6. Financing of Scheme. - The Scheme shall be self-financing, i.e., the entire amount of administration expenses, if any, shall be borne
out of the insurance fund.
7. Loan or withdrawal from Fund. – There shall be no provision for loan or withdrawal from this Scheme fund and no bonus shall be
given to member of this Scheme.
8. Management of Fund.;
 The fund shall be called Gramin Dak Sevaks’ Group Insurance Fund and shall be maintained separately and having no connection with
the Post Office Insurance Fund.
 The fund shall be maintained by the Department of Posts, with the advice and guidance of an Actuary on retainer basis as applicable to
the Post Office Insurance Fund.
9. Payment from Insurance Fund or Savings Fund.
1. The Scheme shall be divided in two funds, namely, the Insurance Fund and the Savings Fund, as per apportionment specified in
paragraph 14.
 2. The mode of payment from respective funds shall be as under, namely:-
1. The amount of Insurance Cover shall be Fifty thousand rupees for each unit of subion of Fifty rupees per month to be paid to the
families of those Gramin Dak Sevaks who unfortunately die, due to any cause, including suicide [reference section 309 of Indian
Penal Code, 1860 (No. 45 of 1860) while in service;
2. the total accumulation of savings together with in interest, to be decided from time to time, shall be payable to the member on his
retirement after attaining the age of superannuation or cessation of his employment with the Department or to his family after his
death while in service;
3. in the case of death of a member while in service, the payment of amount of insurance shall be in addition to the payment from
savings fund.
10. Nomination. - The Head Post Office shall obtain a nomination in Form-III annexed to this Scheme from the Gramin Dak Sevaks
who join the Scheme nominating one or more persons who shall be beneficiary of the amount due from the Scheme in the event of death
of the insured person and if nomination is in favour of more than one person, then the insurant should specify the share payable to each
nominee.
11.Accounting procedure.
 The transaction relating relating to the Scheme shall be accounted in accordance with procedure laid down separately.
 The Government dues recoverable from a member of the Scheme shall not be adjusted from the amounts payable under the Scheme.
12.Sanction of claims. – The sanction of claims shall be issued by the respective Divisional Superintendents or the Gazetted
Postmasters, as the case may be, on the basis of credits certificate furnished by the Head Postmasters, as the case may be, on the basis of
credits certificate furnished by the Head Postmasters concerned and the claims shall be processed by the Head Post Offices concerned.
13.Other features of Scheme.
 No medical examination shall be necessary to join the Scheme.
 Every Gramin Dak Sevak shall be insured on ‘as is where is’ basis subject to age restriction.
 On the absorption or promotion in the Department, the savings component shall be paid to the Gramin Dak Sevak concerned and he shell
cease to be a member of the Scheme from the date of his absorption or promotion.
14.Savings and insurance promotion.
 Out of the monthly contribution of Fifty rupees, the amount of Seventeen rupees and fifty paise and Thirty-two rupees and fifty paise
shall go to the insurance Fund and Savings Fund respectively of the scheme.
 The amount of Fifty rupees is subject to revision after the Scheme works for eighteen months and the ‘Actuary’ is able to carry out a
valuation.
 The break-up of savings and insurance portions shall also finally be decided in accordance with the results of the proposed actuarial
valuation.
15.Interpretation and clarification. – In the implementation of the Scheme, if any doubt arises in regard to interpretation of any of the
provisions of the Scheme or if any, point requires clarification, the matter may be referred to the Postal Life Insurance Directorate,
Chanakyapuri Post Office Complex, New Delhi – 110 021.
16.Review of the Scheme. - The working of the Scheme will be reviewed every three years to ensure that the Scheme remains self-
financing and self-supporting.