Clarification for settlement of surrender claim in respect of lapsed policies
The letter, issued by the Directorate of Postal Life Insurance under the Ministry of Communications, Government of India, addresses the settlement of surrender claims for lapsed policies. It clarifies that policies in a lapsed status cannot be directly surrendered as per the SOP outlined in a previous office letter. However, such policies may be processed for surrender after revival or converted into “Reduced Paid-up” status.
F.No.25-02/2023-LI
Government of India
Ministry of Communications
Department of Posts
(Directorate of Postal Life Insurance).
New Delhi-110021
Dated 24.11.2023.
To,
CPMG
Karnataka Circle
Bengaluru-560001
Sub: Clarification for settlement of surrender claim in respect of lapsed policies-reg.
Ref: AD (PLI) letter no. PLI/5-10/RIgs/XVII/CCI dated 16.11.2023.
Please refer to the office letter no. cited above on the subject matter.
2. In this regard, it is clarified that a PLI/RPLI policy in lapsed status cannot be directly surrendered as mentioned in Point no. 1.5 of “SOP for handling of Surrender Claim Cases in PLI/RPLI” issued vide this office letter no. 25-02/2023-LI dated 05.09.2023.
3. However, a policy lying in lapsed status may be processed for surrender after revival or by getting the same as “Reduced Paid-up” as instructed vide this office letter no. 20-13/2013-LI (Pt-I) dated 29.11.2017.
This issues with the approval of competent authority.
(Mrinalimi Srivastava)
Additional General Manager (PLI)
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