expr:class='"loading" + data:blog.mobileClass'>

Saturday, 17 September 2016

Conversion of PLI Policy

Conversion of PLI Policy
If you have a Postal Life Insurance policy with maturity date at the age of 60 yrs or less , you can change policy terms depending upon your current age and health factor after converting the policy i.e 60 yrs to 50 yrs or vise versa etc..
What is conversion

    Conversion” means any alteration affecting the date of maturity of a contract of insurance and includes not only alteration from Whole Life Insurance class to the Endowment class but also the antedating or post dating of the maturity of an Endowment policy and consequent increase/decrease of premium.
    In the case of policies other than Joint Life Assurance, Children Policy Anticipated Endowment Assurance policies and 10 Year Rural PLI, conversions involving alteration of policy terms other than reduction, discontinuance or commutation of premia referred to above will be allowed only after payment of premia for an integral number of years ( on after completion of one year and month of policy acceptance only i.e if policy date of acceptance is 10.03.2015 than conversion will be allowed in the next march-16,Marhc-17,March-18 so on but before 1yr of maturity) and in any case where it is intended to extend the premium term or to defer the maturity date, on the production of a medical certificate of good health at the expense of the assured

Conditions for Conversion :-

    Conversion of a policy other than CWL class to an EA class payable at the ages of 35, 40, 45, 50, 55, 58 and 60 only will be admissible.
    Conversion of policy as would put the date of maturity or the date of cessation of premium to a date preceding or within one year from the date of conversion is not admissible.
    Such conversions will be permitted only once on the duration of each policy without a fee. Second and subsequent conversions shall be subject to a small fee not exceeding Rs. 20/- or as may be fixed by the Department, in each case.
    No alteration from Anticipated Endowment Assurance and 10 Year Rural PLI policies to other classes of policies or vice-versa, or alterations in the selected term or in the sum assured of the Anticipated Endowment Assurance policy and 10 Year Rural PLI policy will be allowed.

The other formalities to be observed in this connection are detailed below:-
a) In the case of an unassigned policy, consent of the insured to the terms of conversion in the existing form would be sufficient.

b) If the policy is conditionally assigned, consent of both the assignee and the insured would be necessary. If the assignment is absolute consent of the absolute assignee will be sufficient. The consent of the assignee is to be obtained in the form indicated below :

I----------------------------------- assignee of policy No---------------------------- standing in the name of insurant Shri------------------------------- hereby consent unconditionally to the conversion of Policy as described by insurant

Attested. Signature of the assignee,

Place :-

Documents required for Conversion

    Application Form:- Download
    Policy document
    Premium Receipt Book/Loan receipt book if loan taken.
    Certificate of Pay Disbursing Officer regarding recovery of premia from pay for the last six months
    Fee receipt of Rs.20/ if second or subsequent conversion.
    Medical Certificate if required. ( In case Term extended)

No comments:

Post a Comment