Centenary of Postal Life Insurance

Postal Life Insurance (PLI), established on February 1, 1884, is one of India’s oldest welfare schemes for government employees. Its inception was driven by concerns over the financial hardships faced by employees and their dependents, especially post-retirement or during illness. The scheme initially targeted postal employees but soon extended to telegraph employees and eventually to a broader range of government and semi-government employees.

Key Developments in PLI:

1. Early Years:

• Inception: Proposed by the then Director General of the Post Office, PLI was introduced on an experimental basis exclusively for postal employees.
• Expansion: It gradually included telegraph employees and later extended to other government employees at the central and state levels, employees of local bodies, government-aided educational institutions, universities, nationalized banks, and certain autonomous and financial institutions.

1. Policy Evolution:

• Initial Offerings: Initially, PLI provided only life insurance and two classes of monthly allowances, which were abolished in 1930.
• New Policies: The Endowment Policy was introduced in 1898, followed by the Convertible Whole Life Insurance Policy. In 1984, the Anticipated Endowment Insurance Policy was introduced to offer greater benefits.

Administrative and Financial Growth:

• Administration: The PLI fund is managed by the Government of India for the benefit of policyholders, offering convenient terms and significant benefits such as:
• Premium deduction at source
• Facility of nomination
• Coverage of war risks without increased premium
• Easy availability of loans and flexible repayment terms
• Lower premiums and higher bonuses
• Growth: PLI has seen substantial growth over the years:
• 1900: 4,656 active policies with an aggregate insurance value of ₹73.40 lakhs.
• 1947: 92,000 active policies with an aggregate insurance value of ₹19.10 crores.
• 1983: 10,06,910 active policies with a value of ₹685.32 crores.
• Insurance Fund Balance: From ₹14.36 lakhs in 1900 and ₹11.35 crores in 1947, it surged to ₹190.63 crores in 1983.

Post-Independence Impact:

After India’s independence, PLI’s growth paralleled the expansion of governmental activities. Millions of government and semi-government employees have trusted PLI, which has reciprocated with reliable returns and dedicated service. Its inherent advantages and the ability to serve clients faithfully have enabled PLI to spread happiness and well-being among its policyholders.

Commemoration:

To celebrate the centenary of Postal Life Insurance, the Indian Posts & Telegraphs Department issued a special commemorative stamp, honoring its enduring legacy and continued contribution to the welfare of government employees.

Summary:

Postal Life Insurance stands as a testament to the Indian government’s commitment to the welfare of its employees. Its evolution from a small-scale experiment to a nationwide institution highlights its importance in providing financial security and support to countless government and semi-government employees across the country. The centenary commemorative stamp not only marks a milestone in PLI’s history but also celebrates its ongoing mission to serve with dedication and integrity.