The Department of Post also informed the waiver on default fee on revival of a lapsed PLI/RPLI policy upto November 30, 2023.
When can you surrender PLI policy
A policy can be surrendered only if it has been in existence for at least three years and is still in force at the end of the month in which the surrender application is submitted. Note that only a policy in force (active policy, not lapsed) can be surrendered.
How to surrender PLI policy
The policyholder must submit a surrender claim form along with the consent form and any necessary supporting papers, to any Post Office counter or PLI CPC of HO. The consent form must clearly state that the surrender value specified in the surrender quote is acceptable to the policyholder and that once paid, the policy cannot be recovered.
In case policyholder is medically or abroad
If a policyholder is unable to attend the Post Office due to medical reasons or because he or she is outside India, he or she may appoint any person as a messenger to submit the surrender application along with the requisite documentation. A messenger can only be appointed if he or she is an adult, literate, of sound mind, and not insolvent.
How to calculate surrender value
According to the OM, “It is further informed that Surrender value is calculated on reduced sum assured/paid up value. Paid up value = No of premium paid/total number of premium payable x sum assured. Surrender Value is equal to Surrender Factor x (paid up value+ proportionate bonus)”Policies that can be surrendered
- Whole Life Assurance (Suraksha and Gram Suraksha),
- Endowment Assurance (Santosh and Gram Santosh),
- Convertible Whole Life Assurance (Suvidha and Gram Suvidha) and
- PLI Joint Life Assurance (Yugal Suraksha).
Policies that cannot be surrendered
- Anticipated Endowment Assurance (Sumangal and Gram Sumangal),
- 10-year RPLI Anticipated Endowment Assurance (Gram Priya) and
- Children Policy (Bal Jeevan Bima and Gram Bal Jeevan Bima).
The following documents are required to be submitted along with the Surrender Claim Form:
|Sl.||List of Documents||Cash||Pay|
|1||Surrender Claim Form (format at Annexure-I)||Yes||Yes|
|2||Consent of the policyholder to the effect of that the policyholder is agreed upon receiving the calculated surrender value||Yes||Yes|
|3||Original Policy Bond/Duplicate Policy Bond or Letter of Indemnity* (Format at Annexure- II)||Yes||Yes|
|4||Self-Attested copy of ID and Address proof of the Policyholder (list of Documents acceptable as ID and Address proof is given in Annexure-III)||Yes||Yes|
|5||Cancelled Cheque for Bank mandate or Self Attested copy of POSB passbook||Yes||Yes|
|6||Self-Attested Document of Credit, if any**||No||Yes|
|7||Premium Receipt Book ***||Yes||No|
|8||Loan Receipt Book#||Yes||Yes|