Rural Postal Life Insurance (RPLI) came into being as a sequel
to the recommendations of the Official Committee for Reforms in the Insurance
Sector (Malhotra Committee). The Committee had observed in 1993 that only
22% of the insurable population in this country had been insured; life insurance
funds accounted for only 10% of the gross household savings. The Committee
“ The Committee understands that Rural Branch Postmasters who enjoy a position
of trust in the community have the capacity to canvass life insurance
business within their respective areas…..”
The Government accepted the recommendations of Malhotra Committee and
allowed Postal Life Insurance to extend its coverage to the rural areas to transact
life insurance business with effect from 24.3.1995, mainly because
of the vast network of Post Offices in the rural areas and low cost of operations.
The prime objective of the scheme is to provide insurance cover to the rural public
in general and to benefit weaker sections and women workers of rural areas in particular
and also to spread insurance awareness among the rural population. As on 31.03.2015,
we have more than 23.51 million RPLI policies.