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.
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