Saturday, 30 October 2021

CHQ Writes to Chief GM PLI on modifying harsh conditions imposed on retiring staff and discharged GDS!

 CHQ Writes to Chief GM PLI on modifying harsh conditions imposed on retiring staff and discharged GDS!

 CHQ Writes to Chief GM PLI on modifying harsh conditions imposed on retiring staff and discharged GDS!

The PLI Directorate has issued an OM dated 25.06.2021 making the retired postal employees and discharged GDS officials ineligible to any incentive to PLI or RPLI procured by them. This condition is in contrast to LIC where the Agents are continue to be granted with commission even after their retirement by granting exemption to them.

The copy of the letter is given below:

No. AIPRPA / PLI Incentive of Pensioners - Dated 28.10.2021


The Chief General Manager (PLI)
New Delhi – 110021


Sub: Request to modify the harsh conditions imposed through your office OM No.F.No.2803/2019-LI(4) Dated 25.06.2021

This CHQ of All India Postal & RMS Pensioners Association would like to draw your personal attention to the harsh conditions imposed through your above-mentioned OM which are detrimental to the retired pensioners who had toiled for the growth of PLI and RPLI while in service.

The rate of commission fixed is very low in contrast to the public sector LIC where 35% commission is paid in the first year and 7.5% for the next five years and thereafter during the entire term of the live policy a commission of 5% is disbursed by the LIC. However, the purpose of this CHQ is not to point out the difference in the rate of commission between our PLI/RPLI and LIC. The purpose of this CHQ is mainly to point out the terms mentioned in Para 7.1 and 7.2 of the said OM as under:

1. Para 7.1 says that after the termination of the agency, no procurement/ renewal incentive will be paid. This condition puts a blanket ban on all terminations. Insurance companies like LIC had fixed a ceiling of five years and any termination of agency after five years will not debar the persons from receiving his or her commission on the policies procured earlier. The OM of the Department of Posts cancels any incentive irrespective of the years of service rendered by the terminated persons.

2. Para 7.2 is even harsher. Any retired or superannuated Postal Departmental Employee or the Gramin Dak Sewaks are made ineligible to draw any procurement or renewal incentive. This condition is forfeiting all the past services rendered by the retired officials to the growth of PLI / RPLI for years earlier and all those valuable services are made unremunerative. This is totally in contrast to the Insurance companies like LIC where the Agents even after retirement are exempted from continuing to procure policies and commission for the past policies procured are paid to them and after their death the commission if any is continued to be paid to the legal heir. The practice of PLI Directorate is akin to robbery which a Government Department is not expected to follow. This condition forgets the fact that every one is expected to pay income tax according to his or her income and any incentive paid along with the pension is taxable above the limits.

The right of termination of any employee or GDS from the job is not questioned by us as it is the prerogative of the Department after due process. But any termination after five years shall continue to render commission or incentive to the terminated agents also. Similarly, the retirement or discharge of employees or GDS shall not result in stoppage of incentive to them but continue to be paid till their death and to their legal heir if the policies procured by them are current.

This Association is hopeful that while PLI / RPLI Directorate tries to maintain the lower premium collected from customers, it will not harm the terminated or superannuated / discharged officials who had toiled for the growth of the PLI/RPLI. We are confident that necessary reconsideration of the above OM will be made and appropriate improvements ordered.

Thanking you,

Yours faithfully,
General Secretary


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