F.no. 25-02/2020-LI
Department of Posts
(Directorate of Postal Life Insurance)
Dated: 26.09.2022
Regarding mandatorily collection of LI-7 (a) (Preliminary Receipt) form with the new PLI/RPLI proposal forms.
It has been observed that collection of LI-7 (a) (Preliminary Receipt) is not being ensured by PLI-CPCs/Circles which is a serious irregularity and may cause misappropriation of advance premia amount collected by the salesforce.
As per the extant instructions LI-7(a) (Preliminary receipt) is prescribed for PLI/RPLI salesforces to receive an advance deposit in cash or cheque equal to 1st premium from the proponent, while procurement of a policy. LI-7 (a) receipt is issued on the spot by the concerned salesforce in token of having received the premium from the proponent. The salespersons /agents are required to deposit the premium so collected with the Post Office as early as possible, but not later than the following working day, after the day of receipt of advance deposit.
Therefore, LI-7 (a) serves as an important document for reckoning and comparing the date & amount of premium collected from the proponent vis-a-vis its submission/ presentation in the DOP accounts, by a salesforce. Barring usage of this receipt in collection of 1st premia from the proponent or removing the compulsory submission of this receipt by salesforces with the proposal form, may lead to serious grievances, irregularities, or instances of misappropriation of premia amount.
It is therefore, requested that all the Circles may instruct their PLI-CPCs & Postal Divisions to ensure collection of LI-7 (a) form with each of the new PLI/RPLI proposals for collection of 1st premia towards the proposal from the salesforces. It is mentioned here that LI-7 (a) form shall only be used for collection of 1st premium and do not apply for subsequent/renewal PLI/RPLI premia.
Copy of PLI Directorate letter no. 26-02/2009-LI dated 03.05.2011 containing instructions on usage and verification of LI-7 (a) form in PLI/RPLI is also being enclosed with this letter for your kind information and necessary action.
These instructions should immediately be brought into the notice of all concerned and followed scrupulously.
This issues with the approval of competent authority.
