Payments amounting to Rs8 billion for Postal Life Insurance (PLI) policyholders have faced significant delays due to a shortage of funds, creating growing concern among those waiting for their claims to be settled, according to a news report.Â
Thousands of policyholders are experiencing prolonged wait times for compensation, with many claims unresolved for extended periods.
The delay in transforming PLI into a registered company, along with the failure to appoint a Chief Executive Officer (CEO), has exacerbated the issue, leading to growing frustration. As a result, the once-profitable entity is on the brink of collapse, with claims piling up and no resolution in sight.
According to sources, the Ministry of Finance (MoF) has allocated only Rs3 billion out of the Rs8 billion needed to settle the claims. This sum is set to be released in four quarterly installments, but billions more in claims are expected as policyholders continue to submit requests for payment.
Reports indicate a sharp decline in PLI’s revenues, which have plummeted from Rs500 million in 2020 to just Rs50 million in 2024. The financial strain, combined with the growing number of outstanding claims, has raised serious concerns.
The absence of a CEO and an incomplete board of directors have further hindered the settlement of large claims. A senior official from Pakistan Post explained that, since PLI was incorporated as a company, Pakistan Post no longer has direct control over its operations. In the absence of a CEO, the Federal Secretary for Communications is overseeing the institution’s affairs.
As a result, policyholders are resorting to all available government and legal channels in an effort to resolve the delays and secure their payments.
