Insurance Services and Types of Life Insurance: Postal Life Insurance and Rural Postal Life Insurance (For CBSE, ICSE, IAS, NET, NRA 2022)

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Insurance Services

With mail and remittance of money, post offices provide life insurance coverage to individuals. Insurance is a contract between two parties whereby one party agrees to pay a fixed sum of money to the other party on the happening of any event that causes damage or loss to that party. The party who agrees to pay money on happening of any event is called insurer, and the other is called assured. As per the contract, the insured pays fixed amount (called premium) either in lump sum or in instalments to the insurer for a fixed period. If any such event happens during that period and the insured or assured suffers a loss, then the insurer has to pay the agreed amount to him or his family members. Post offices offer life insurance under two schemes:

Types of Life Insurance

Postal Life Insurance

Postal Life Insurance (PLI) was initially introduced for postal employees. The post office allows the employees of these organizations, who are below 50 years of age, to insure their life on payment of a fixed premium for a particular period. Over the years it has been extended to the employees of central and state governments, public sector undertakings, universities, government aided institutions, nationalised banks and financial institutions. It undertakes to pay a certain sum of money either on the death of the insured or on the expiry of a specified period.

Rural Postal Life Insurance

Post Offices provide life Insurance coverage to the people living in rural areas and the weaker sections of society, which is known as Rural Postal life Insurance (RPLI) . Under RPLI, the insured person pays a very low premium for the insurance coverage.

Other Postal Services

Post office provides postal services like mail, remittance, banking and insurance services. Apart from these services, post office also provides various other services like-

Sale of Stamps

In addition to postal stamps, various other types of stamp like revenue stamp, share transfer stamps, recruitment stamp etc. are also sold at post offices. Revenue stamps are used while getting a receipt from the receiver if the amount of transaction exceeds Rupees five hundred. Share transfer stamps are used for transferring shares or other securities in the name of others.

Sale of Forms

Post office facilitates sale of different forms like passport forms, UPSC (Union Public Service Commission) forms, SSC (Staff Selection Commission) forms and forms of other national level competitive examinations.

Bill Payment

Post office collects payment of telephone, electricity, and water bills from the consumers.

Pension Payment

Post office provides the facility of old age pension to senior citizens. Ministry of Social Welfare and State Governments grant this old age pension. For the convenience of pensioners, Government of India has made necessary arrangement for payment of pension through post office. Military, railways, coalmines, telecom pensioners can avail of this facility from the nearest post offices.

Post Shoppes

Post shoppers are the small retail shops established for sale of postal stationery items, greeting cards and small gift items to the customers. These shops are found within the premises of some post offices.


Special and commemorative postage stamps as well as special covers (envelopes) are issued by the Postal Department that cover a wide range of themes reflecting the rich natural and cultural heritage of the country. Important national and international events, famous personalities and institutions are honoured through the medium of commemorative postage stamps and envelopes. These stamps enjoy wide popularity in the world of philately.

Gramin Sanchar Sewak Scheme

With a dream to provide telephone facility to every home, Gramin Sanchar Sewak Scheme has been launched. It is a joint effort of Department of Post and Bharat Sanchar Nigam Limited (BSNL) Under this scheme, the postmen while delivering mails from door to door will also carry a mobile phone with them. This facility is available only in rural areas of our country.

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