CAG rebukes Dept of Post for lesser life insurance policies

CAG rebukes Dept of Post for lesser life insurance policies
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First Published: Sun, Oct 26 2008. 12 44 PM IST
Updated: Sun, Oct 26 2008. 12 44 PM IST
PTI
New Delhi: The Comptroller and Auditor General of India has criticised at Department of Post for diminishing procurement of business under the Postal Life Insurance and Rural Postal Life Insurance schemes.
“In the case of Postal Life Insurance (PLI), the shortfall in business procurement target went up from 17% in 2002-03 to 41% in 2006-07, and in the case of Rural Postal Life Insurance (RPLI), the shortfall had gone up from 16% to 27% during the same period,” the CAG report tabled in Parliament said.
The annual growth in the number of PLI policies ranged between 4% and 8% during 2002-07. Except ‘Santosh´, other schemes of PLI have not been very popular and the number of new policies procured under Suraksha, Suvidha, Sumangal, and Children Policy has declined consistently during the same period, the report said.
During a test check in seven circles, delay in acceptance of proposals for PLI/RPLI policies was found by CAG.
“In PLI, 4% of the proposals received during the period 2002-07 were accepted with delays of more than 30 days, whereas in RPLI, 23% of proposals were delayed for more than 30 days during the same period,” the report added.
With regard to settlement of claims, during check in eight circles CAG observed, “In PLI, 25% of the claims received during the period 2002-07 were settled with delays of more than 30 days, whereas in RPLI, 17% of claims were delayed for more than 30 days during the same period.”
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First Published: Sun, Oct 26 2008. 12 44 PM IST