Post Office Gram Priya Scheme- RPIL Scheme

Post Office Gram Priya scheme (RPLI) was started on March 24, 1995, by the government of India on the recommendations of the Malhotra committee for people living in rural areas.  

The Malhotra Committee found in 1993 that only 22% of India’s population was insured; life insurance funds account for only 10% of gross household savings.

The Malhotra Committee’s recommendations were approved by the government and allowed Postal Life Insurance to expand its coverage to the rural areas because the postal department has an extensive network in rural areas and low operating costs.

 In addition to raising awareness of insurance, the main aim of the post office gram priya scheme is to provide general insurance coverage for rural people and to benefit the weaker section of the society, especially working women.

What is Post Office Gram Priya scheme?

Post office gram priya scheme is a rural postal insurance plan started in 1995. Gram priya scheme is a predictable financial insurance scheme that provides regular returns. 

This plan’s primary aim is to make people aware of life insurance and make them financially sound, especially the weaker section and working women.

Gram priya plan is beneficial for those who want to get benefits during the period of insurance to manage their regular expenses at essential life periods. The scheme also provides higher bonuses for policyholders if there is no withdrawal.

Post office gram priya scheme focuses on the rural population; it is a money-back plan that provides life insurance cover for ten years to the sum assured. 

Benefits under the scheme to the survival are given- 20% after four years, 20% after seven years, and after ten years – 60% with accumulated bonuses.

Bonuses, last declared is Rs. 47/1000 on the sum insured. 

The minimum insurance amount for this plan is Rs 1 lakh, and the maximum amount is ten lakhs.

Benefits of RPIL (Rural Postal Life Insurance)

Post office gram priya life insurance scheme benefits are as under:

  • The Indian government backs the scheme, so it is a secure investment plan.
  • RPIL provides high bonuses, but the premium payments are low. 
  • Gram Priya insurance policyholder can be transferred to any place in India free of charge.
  • The facility of a passbook for RPIL is available.
  • A discount of 1% is given on six months’ advance premium payments.  
  • A 2% discount is given if the policyholder pays premium payments in advance for twelve months. 
  • Policyholders can choose a nominee.
  • If the policy expires due to non-payment of the installment, the policy can be re-started by paying the premiums, which are due. 
  • If six premiums for a policy running for less than three years are not paid, the policy will lapse, and if premiums for a policy running for more than three years are unpaid, the policy will lapse. 
  • Installments for RPIL can be paid through any post office across India. 
  • RPIL settlement is easy since the process of settlement is fully computerized.
  • If the installment amount is higher than 20 rupees, the premium can be paid by cheque.
  • If necessary, the nominee can be changed.
  • The facility of duplicate policy bond is available in case the policyholder lost the bond. 
  • Premium can be paid monthly, quarterly or yearly, according to your choice. 

Also Read: Central Government Computer Courses Scheme

Eligibility for Gram Priya Postal Life Insurance Scheme

Eligibility for RPLI is as under: 

  • Residents in rural areas can apply for the gram priya scheme.
  • A person can also take this policy if he lives in a city but has rural residence proof. 
  • The minimum age for applying is 19 years.
  • The maximum age to apply for the scheme is 45 years.

Medical Test For RPLI

Whether a medical test is necessary or not for a person who wants to invest in RPLI depends on his age and sum insured. 

If the insurance amount is less than Rs. 25 000 and the person’s age is 35 years or less; there is no need to undergo any medical test.

If the insurance amount is more than Rs. 25 000 and the person’s age is above 35 years; then the medical test is necessary to prove that the investor is healthy. 

Maturity Period of RPLI

The maturity period for the gram priya scheme is ten years from the opening date of the scheme. 

Gram Priya Income Tax Benefit

Income tax benefits for anyone taking the RPLI are as follows:

  • RPLI returns provide tax benefits to the policyholders under section 80C of the Income Tax Act, 1961
  • Deductions on premium payments as per the Income Tax Act, 1961 are also available to the investor
  • From July 2017, 18% GST (Goods and Services Tax) is applicable on life insurance policies.  

How to Get Gram Priya Insurance Cover

To get the insurance policy under RPLI, follow the steps below:

  • Visit any branch or sub-post office and get the RPLI form
  • You can also download the RPLI form from
  • One passport size photograph 
  • Date of birth proof (PAN Card/Driving License)
  • Proof of address (Aadhaar card/Ration card/Electricity bill/Passport) 
  • Fill up the form and attach the documents mentioned; submit the form with the first premium. 

After submitting the form, your policy bond and passbook will be delivered to you through registered post. 


Post office gram priya scheme was started in 1995 after the Malhotra Committee recommendations. The plan aims to provide insurance cover for the rural population through India. 

It is a money-back scheme that provides life insurance cover for ten years to the sum assured. RPLI benefits the investor as the plan provides benefits during the insurance period. 

Similar Articles

Leave a Reply

The reCAPTCHA verification period has expired. Please reload the page.