Customers now bear MDR fees for postal life insurance
If you hold a Postal Life Insurance (PLI) or Postal Rural Life Insurance (RPLI) policy, you will now incur the Merchant’s Discount Rate (MDR) charge when paying premiums. online insurance. The Postal Department issued a memo to this effect on January 18.
According to the notification, “No MDRs will be paid by the Government Portal to the Approved Acquiring Bank and its PGs/PGAs.” The customer/cardholder would pay all MDR fees, and necessary orders are implemented for PLI/RPLI online premium payment transactions, he added.
The MDR is a charge charged to a merchant by their issuing financial institution to accept payments from their customers by credit card, net banking and debit cards.
Typically, a client who is an employee of state and central governments, state and central public sector enterprises, Indian government aided educational institutions, universities, local bodies, nationalized banks , joint ventures with at least 10% government/PSU ownership, cooperative credit societies, and personnel of defense services and paramilitary forces may purchase or hold a postal life insurance policy.
The scheme was introduced on February 1, 1884. Over the years, PLI has grown significantly from a few hundred policies in 1884 to over 46 lakh policies as of March 31, 2017.
Also, Rural Postal Life Insurance was introduced on March 24, 1995 for the rural people of India. The Malhotra Committee noted in 1993 that only 22% of the insurable population in this country were insured; life insurance funds accounted for only 10% of gross household savings. The government accepted the recommendations of the Malhotra Committee and allowed the postal life insurance to extend its coverage to rural areas to carry out life insurance operations, mainly due to the extensive network of post offices in rural areas and low cost of operations.
The main objective of the scheme is to provide insurance coverage to the rural public in general for the benefit of the weakest strata and female workers in rural areas in particular and to raise awareness among the rural population about insurance.
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