Applicability of Penalty Charges on recovery of defrauded amount in respect of PLI/RPLI

 Applicability of Penalty Charges on recovery of defrauded amount in respect of PLI/RPLI

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F. No. 25-6/2020-LI

Govt. of India

Ministry of Communications

Department of Posts

Directorate of Postal Life Insurance

Chanakyapuri PO Complex,

New Delhi - 110 021. Dated 05.07.2024

To
The All Heads of the Circle.

Subject: Applicability of Penalty Charges on recovery of defrauded amount in respect of PLI/RPLI-reg.

Respected Sir/Ma'am

With reference to the subject mentioned above, clarification/guidelines have been sought from some circles.

The matter has been examined and it is decided that the applicability of penalty charges on recovery of defrauded amount in respect of PLI/RPLI shall be double of the prevailing bonus rate +2% at the time of misappropriation or double of the prevailing bonus rate +2% at the time of recovery whichever is higher. The same will be chargeable from the date of misappropriation.

For instance,

If misappropriation happened in the year of 2015-16 and the recovery was effected in the year 2021-22. The bonus rate in the year 2015-16 was 5.8%, and the bonus rate was 5.2% in the year 2021-22, then the applicable rate shall be (5.8% *2+2% ) = 13.6% (higher bonus rate).

As such, it is requested to kindly issue necessary instruction to all concerned to deal the recovery cases of defrauded amount in respect of PLI/RPLI accordingly.

This is issued with the approval of the competent authority.

(Sahabuddin Laskar) 

Accounts Officer (PLI)