The Department of Post has published guidelines for the swift settlement of diseased claim applications after determining that many post offices are not adhering to the prescribed procedures and timelines for settlement of diseased claim cases related to Public Provident Fund (PPF) and other small savings. Post Offices will be able to ensure that issues are completed within the given time range according to guidelines.
Department of Post (DoP) claims many post offices not following prescribed procedures and timelines for settlement of diseased claim cases
According to a press release from the DoP dated September 1, 2023, Post Offices are required to ensure that diseased claim cases are resolved within the allotted time frame. Additionally, it was noted that Head Post Offices and Sub Post Offices needed to be made aware of the necessity to follow the rules for prompt settlement.
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Procedures for processing diseased claim cases
(a) The claimant’s KYC document(s) must be compared to the original KYC papers at the time the deceased claim case and KYC documents are received.
(b) Physical presence of witnesses is not necessary if their signatures are on a copy of the KYC documents.
(c) It should be made clear to the claimant(s) that they must include their bank account or PO savings account information when submitting a decease claim case in order for the payment to be transferred and to obtain an account number and signature on the acquittance portion. This way, the nominee(s) or claimant(s) won’t have to go to the post office once more to pick up a check.
(d) The Sub Post Office and Head Post Office are not required to issue a separate sanction document for the resolution of deceased claim cases. The claim on the second portion of Form 11 that is marked “For Office Use Only” must be approved by SPM/PM.
(e) After receiving a dead claim case with the necessary documentation, additional verification through PRI (P)/SDI (P) is not necessary.
(f) All post offices must guarantee that deceased claim claims are resolved within the allotted time frame or norms, which is one working day in cases when a nomination is present and seven working days in all other circumstances.
DoP circular dated 06.11.2020
According to a circular dated 06.11.2020, DoP said that “if the eligible amount in a deceased account is above Rs. 5 lakh where no nomination or legal evidence available, the amount shall be paid to the claimant on submission of ‘Succession Certificate’ issued by the court.” According to the post office, up to Rs. 5 lahks can be refunded after six months after the depositor’s death if there is no nomination in the plan. This amount can be claimed by submitting a claim form, and a death certificate.
The department also said in the circular that “The Post Office where the account stands, on receipt of the claim either directly or by Insured Post will issue acknowledgment to the claimant on the same day. The claim case is to be settled within 1 (one) working day when nomination exists and within 7 working days in other cases, if the claim falls under its financial powers of the Post Office. If the claim case falls above the financial powers, it shall be forwarded to the sanctioning authority by service Insured Post on the day of its receipt. 2. Divisional office will dispose-off the claim case within 7 working days of the receipt of the same.”
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