The scheme worked smoothly, and, taking into consideration that many employés of the Post Office are poorly paid officials, a fair measure of success was attained during the first few years except in the Monthly Allowance branch and in the system of Life Insurance by single payment. The following figures show the proportion of officials who availed themselves of insurance during the first three years:--
1884-85 1·05% of the whole Post Office establishment. 1885-86 1·46% " " " 1886-87 1·79% " " "
In 1887 the rule under which one-half surrender value could be allowed on all policies and contracts when payment had been discontinued was modified so as to exclude from this privilege policies and contracts on which three years' premia or subscriptions had not been paid. In September, 1887, the Fund was opened to the Telegraph Department, and in 1895 to employés of the Indo-European Telegraphs and to women employed in all the departments.
With effect from the 1st February, 1898, the benefits of the scheme were extended generally to all permanent Government servants whose pay was audited in Civil or Public Works Account offices and all members of establishments of the Military Department, under audit of the Military Account offices, who were subject to Civil rules. From the same date a system of Endowment Assurances providing for payment at any age between 45 and 55 was introduced. With this general extension of the scheme it was decided that the medical examination of proposers for insurance should be more stringent and that medical officers, who had until then been examining proposers for insurance free of any charge, should be allowed a fee of Rs.4 for each examination, as their insurance work would be substantially increased. In the same year (1898) the system of Life Insurance by a single payment which had proved to be a failure, was abolished.
In 1899, Temporary Engineers and Temporary Upper Subordinates of the Public Works Department were allowed by Government to be admissible to the benefits of the Fund, provided that the Chief Engineer declared that they were eligible for admission. In 1903 it was extended to permanent Government servants in foreign service in India, and in the same year Life Insurance policies were allowed to be converted into Endowment Assurance policies.