SURRENDER OF POLICIES

POLI Rule no 55:-  

A policy other than an Anticipated Endowment Assurance, 10 Year Rural PLI and Children policy may be surrendered for an immediate payment in cash, provided the policy is of not less than three years duration. In such a case, the insured person or the assigns of the policy, as the case may be, shall give notice of surrender, in writing, to the Postmaster/Manager of Central Processing Centre (GPO/Head Office) concerned and forward the policy or a duplicate copy thereof or Indemnity bond (if policy is lost) at any Post office along with the premium receipt book, if premia had been paid in cash and loan repayment receipt book, if loan principal/interest is outstanding. The concerned Post Office will send all those documents to the Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) from where the same will be sent to the concerned approving authority for approval. Further deductions on account of premium from the pay of the insured person shall cease on receipt of instructions of Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) issued after approval of the concerned approving authority. A policy surrendered under this rule shall continue to be in force till the end of the month in which the application for surrender is received by the approving authority concerned and accordingly the premium shall also be payable for the period for which the policy continues to be in force. For policies in respect of which premium is paid annually in advance, surrender value is to be calculated at the end of the year irrespective of the date of surrender but payment of surrender value may be made when the policy holder asks for it. No bonus will be paid in respect of a policy with effect from the date of discontinuance of premia43. Proportionate bonus shall be paid on paid up value after completion of 5 years i.e. if a policy remains in force at least for 5 years.

POLI Rule no :- 55.1

 On receipt of the notice and the documents referred to in this rule, the Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) shall examine the title of the claimant and calculate the surrender value of the policy in accordance with the prescribed formula. The admissible surrender value of the policy should also be communicated to the claimant for sending his consent/dissent in writing regarding taking payment or not taking payment of the admissible surrender value of the policy intended to be surrendered. On receipt of consent of insurant for taking payment of admissible amount of surrender value communicated to him, Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) will approve the case at his own level, if within his powers, or send the case to concerned approving authority for approval. After approval of the case by concerned approver, Postmaster/ Manager of Central Processing Centre (GPO/ Head Office) will issue sanction for payment of admissible amount of surrender value to the concerned Postmaster under intimation to the claimant. The amount sanctioned shall be paid to the claimant on his surrendering the payee’s copy of the order at the Post Office and signing a receipt for it, duly stamped, where necessary, on the back of the order. In case of payment through cheque Rule as prescribed in 52(2) may be followed.

POLI Rule no 55.2

 Approving Authority (as modified from time to time by executive order of CGM (PLI), in his discretion, may allow withdrawal of an application for surrender at any time before the surrender value is actually paid to the applicant if sufficient reasons are adduced for such a withdrawal, and if the withdrawal would not adversely affect the interest of the Fund.