Amendment to Rule 16 (i) and Rule 61 of POLI Rules 2011

Amendment to Rule 16 (i) and Rule 61 of POLI Rules 2011 in connection with settlement of claims arising due to death of insurant by suicide

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

To
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 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-1). Illustrations are enclosed as Annexure-II.
3. This instruction may be widely circulated in the Circle for compliance.
   This issues with the approval of CGM (PLI).

(Shiv Kumar)
Assistant Director

MINISTRY OF COMMUNICATIONS
(Department of Posts)
DIRECTORATE OF POSTAL LIFE INSURANCE

NOTIFICATION

New Delhi, the 15th April, 2021

No. 25-04/2021-LI.—The President is pleased to make the following amendments to Rule16 (i) and Rule 61 of “Post Office Life Insurance Rules-2011” published on 28th April 2011 in the Gazette of India No. 85 (Part-I Section-I Extraordinary):

2. Rule 16 (i) is amended as under: –
   FOR
   16 (i). Thirty five percent of sum assured along with the accrued bonus in case the death of the insured person occurs before the completion of one year from the date of acceptance of the proposal.
   READ
   16 (i). Thirty five percent of sum assured along with the accrued bonus in case the death of the insured person occurs before the completion of one year from the date of acceptance of the proposal except in case of death by suicide, which shall be dealt as per Rule 61.
3. Rule 61 is amended as under: –
   FOR
   61 (Suicide Cases)50:
   In the event of an insured person committing suicide any time after the date of acceptance of the policy (whether sane or insane at that time) and after having paid his first premium in full but not after expiry of two years from such date of acceptance or payment of first premium whichever is later, the policy shall become void and no claim whatsoever shall be entertained by the department by the virtue of the said policy except to the extent of the bonafide beneficial interest which any person ( other than the life assured) shall have acquired in the said policy for valuable consideration for which one calendar months notice, before the death of insured person, should have been given to the Director General of Posts or Postmaster General concerned on his behalf; and provided further that sufficient proof shall have to be produced in regard to having acquired such interest in the policy to the satisfaction of the Director General of Posts or Postmaster General.
   READ
   61 (Suicide Cases) 50:
   In the event of an insured person committing suicide any time after the date of acceptance or revival of the policy (whether sane or insane at that time) and after having paid his first premium in full but not after expiry of one year from such date of acceptance or date of revival whichever is later, the policy shall be entitled for 80% of the premium paid till the date of death or the surrender value, if applicable, as on date, whichever is higher provided the policy is in force.

MANJU KUMAR, Chief General Manager (PLI) Equivalent to Addl. Secy

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