1. 1

2. Postal Life Insurance
LOW PREMIUM ---- HIGH BONUS
Tahir Mahmood
KASB Institute of Technology

3. Postal Life Insurance
 Established in 1884
 Initially meant for low-
paid postal employees
 Its ambit stands extended
to general public
 Also available for sale to
all Government Servants /
Private organizations
 Post Office Insurants Fund
has risen from Rs.9.6
million to Rs.20 billion

4. Objectives
• Contribute to National Savings
and progress of the country
• Extend insurance business
even to the remotest and
neglected areas
• Use of policy holder’s fund in
the interest and welfare of the
society
• Maximum benefits to the
policy holders at the minimum
possible cost
• Ensuring efficient and quality
service to the policy holders
A beautiful view of Shangrila resort Skardu

5. Administrative Setup
• Chairman/ DG Pakistan Post
• Add Director General (PLI)
• General Managers (PLI)
• Regional Directors (PLI)
• Asstt General Managers(PLI)
• Assistant Directors Field (PLI)

6. Salient Features of PLI Schemes
 Ensures bright future and
prosperity to the insurant
and to the nation
 Low premium rates with high
bonus rates
 Premium payable on monthly
quarterly, six monthly and
yearly basis
 Payment of premium at any
post office in Pakistan
 Maximum limit is Rs.5 million
Centaurus Islamabad

7.  Risk of all sorts of casualties
covered under the scheme
 Compulsory savings for all
 Insurance coverage on very
easy terms and conditions
 Loan facilities on policies
 Attractive rebates on the
advance payment of each
yearly / 6 monthly premium
 Payment guaranteed by
Government of Pakistan
Muzaffarabad after Earthquake 9 Oct 2005

8. Types of policies
WHOLE LIFE POLICY
• Cheapest survival arrangement
for a family against premature
casualty of the bread earner
• Premium can be paid till the
age of 50,55,60 or 70 years as it
suits to the insurant
• The sum assured + bonus is
payable at the attaining the age
of 85 years or the casualty of
policy holder

9. ENDOWMENT POLICY
• Purchasable for any sum
• Payable at the expiry of the
specified term or on his
attaining the age of 30,35
------ 70 years or on his death
whichever is earlier
JOINT LIFE INSURANCE
• Any sum payable at the
expiry period of 10,15 ------
35 years or at the death of
either of the two insured
persons

10. THREE PAYMENT PLAN
• Insurants feel comfortable with TPP
• Can be purchased for fixed term of
12,15 ----- 30 years
• 25 % of the sum assured is payable
to the policy holder at the end of
the one third of the term
• 25 % at the end of the two third of
the term, 50 % along with the
accrued bonus at the end of term
• In case of death of the policy
holder, total sum assured + full
bonuses is payable to the claimant
irrespective of the payments
already made to the policy holder
during his life time

11. EDUCATIONAL & MARRIAGE
ENDOWMENT
• Issued for the period ranging from 5-17
years
• The period of endowment is timed as
per requirement of the beneficiary
child
• In case of death of the insured before
the specified date, the policy becomes
a claim and payment of further
installments are waived off
• The amount of claim is deposited in
S.B account in the name of the
nominated child and is paid with
accruing profits on the specified
date/expiry of term

12. ACCIDENTAL INSURANCE
• Issued in combination with whole
life or endowment assurance as a
supplementary contract
• Minimum Rs. 50000
• Payment of an additional amount of
Rs. 1500 for accidental disability.
(for 5 Lac)
• Supplementary contract ceases to
be operative on maturity of the
principle policy in the natural course
• Disability includes loss of one or two
of his hands/legs or eyes
• Supplementary contracts are not
admissible in case of non medical
policies and in case of defence
personnel

13. CHILD PROTECTION POLICY
• CPP is issued jointly on the lives
of the child and the father or
mother
• No other relative is allowed to
be associated with the policy
• It is issued when the age of the
child is between 1 to 17 years as
per details given below:
AGE ON MINIMUM MAXIMUM
ENTRY
Child 6 months 17 years
Payer 20 years 50 years

14. GROUP INSURANCE
• Under the Group Insurance
scheme, the entire group,
(all employees of a particular
department are insured)
• Premium is paid collectively
by the department
• Agreement is signed for one,
two or three years
• After the expiry period of
contract the GM PLI may
refund a part of the profit, if
any revealed, to the party
concerned

15. Strength of PLI
• A relatively well organized
system both in terms of
management and its
physical network
• About 126 years of
experience in Life Insurance
• High bonus and lowest
premium
• Guaranteed by the state
• Accessibility in the remotest
areas of Pakistan through
wide network
15

16. • Departmental and non-
departmental field force
• Premium payable on
monthly, quarterly, six
monthly and annually
• Confidence of general public
in Pakistan Post and PLI
• Exemption fromTax
• Exemption from supervisory
fee
16

17. 17