CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SHEHEME:

1982

Introduction:

1. This scheme was introduced by the Central Govt to replace the

“Central Govt Employees Insurance Scheme-1977. This Insurance scheme
was notified on 01 Nov 1980 and came into force wef 01 Jan1982 (FN).

Authy: Govt of India Min of Fin. OM No. F.15 (3)/78/WIP dated 31 Oct
1988 and subsequent orders on this subject thereon and
Swamy’s – Group Insurance Scheme.

Scope and Objectives:

2. It provides benefits for Central Govt Employees, at a low cost and on a

wholly contributory and self financing basis; the twin benefits an Insurance
cover to help their families in the event of unfortunate death while in service
and lump sum payment to augment their resources on Retirement,
Resignation etc.

3. A portion of the subscription is credited to “Insurance Fund” and

another portion credited to “Saving Fund” earns interest at the prescribed
rate compounded quarterly. The apportionment is at 30% to Insurance Fund
and 70% to Saving Fund.

Application of scheme

4. This scheme applies to All Central Govt Employees including those in

Railways and Deptt of P & T, Defence Civilians etc. except Casual
Labourers/Contract employees.

Membership:

5. The scheme is compulsory for all the employees who entered service
after 1st Nov 1980. Employees will be enrolled as a member of the scheme
only from 01 January every year. If an employee enters service on or after
02 January in any year, he will be enrolled as a member only 1 st January of
the next year. From the month of entry into service till the end of that year,
he will subscribe at reduced rates and he will be entitled only to Insurance
cover appropriate to the group he belongs.

Monthly Subscriptions and amount of Insurance cover :

6. The present rate of subscription and Insurance cover admissible
under this scheme are as under:-

Group Rate of subs Amt of Insur cover

‘A’ Rs.120.00 Rs.1, 20,000.00

‘B’ Rs. 60.00 Rs. 60,000.00

‘C’ Rs. 30.00 Rs. 30,000.00

‘B’ Rs. 15.00 Rs. 15,000.00

Promotion during the year

7. On regular promotion of a member to higher group after 01 st January in

any year, his subscription will be raised only from 1 st January of the next
year. Once an employee is admitted to the higher group, his subscription
and Insurance cover will continue to be at the same rate, even if he
subsequently reverted to the lower group for any reason.

Benefits payable

8. The employee will be paid as per the CGEGIS Table on retirement,

retirement, resignation, death etc:-

a) When an employee proceeds on retirement, resignation etc- Lump

sum amount of accumulation in the ‘Saving Fund’ above as per the
table for the relevant year.

b) In the event of death while in service – His family/nominee will

be paid lump sum amount in the ‘Saving Fund’ and and in addition
the amount of appropriate ‘Insurance Cover’ to which the Govt was
entitled at the time of death.

c) In the event of death before becoming member of the scheme -

Only the amount of ‘Insurance Cover’ and no benefits from ‘Saving
Fund’ as he subscribed at reduced rates for Insurance cover only.

Income Tax

9. Income Tax Rebate is available for the amount of subscription made

under this scheme.

Nomination

10. If the employee has a family, he shall make such nomination only in
favour of members of his family. Family means Husband, Wife or Wives,
Parents, Children, Unmarried sister, deceased Son’s widow and children or
paternal grand father. However, a female subscriber can exclude her
husband from family by a notice to her Head of Office. In any of the
nominated family member subsequently ceases to be the member of family
under any circumstances, nomination in favour of such members would
become invalid. For example minor brother attaining the age of majority and
unmarried sister on getting married. Their share of insurance amount in
such cases will be paid of other nominated members of family in equal share.

When valid Nomination is not available

11. When an employee dies without leaving a valid nomination the amount
due and payable under the scheme is paid as the nomination, if any, made
under GP Fund Rules. If there is no nomination for GP Fund even, the amount
may be paid in equal shares to widow or widows, minor Son and unmarried
daughters without insisting upon a succession certificate. The mother shall
be deemed to be the natural guardian in the case of minor children.
However, guardianship certificate is necessary in the case of a Muslim Lady.

When no eligible family is surviving

12. The amount may be paid to legal heirs on production of a successor

certificate.

Debarring an eligible person for receiving Insurance amount

13. If the eligible member of the family is charged with murdering of the
Govt servant or for abetting in the commission of such an offence, his/her
claim will be suspended till finalization of criminal proceedings launched
against him/her.

Payment to Nominee/heir when an employee is missing

14. The nominee/heir is to a lodge a FIR at the nearest Police Station. In

case employee’s whereabouts are not known, the amount due under Saving
Fund will be paid to nominee/heir after one year following the month of
disappearance of the employee. The amount due under Insurance cover will
be paid after seven years following the month of disappearance on
production of proper and indisputable proof of death or a Decree of the court
presuming the employee deemed to be dead as per the section 108 of Indian
Evidence Act. Full subscription for one year and at reduced rates for the next
six years will recovered together with the interest before making payment to
nominee/heir.

Interest on arrears of subscription

15. If an employee is on EOL, the arrears of subscription will be recovered

with interest in not more than three instalments. However, no interest shall
be charged on the arrears of subscription if the non-recovery is due to
mistake/delayed payment of salary.

Recovery of Govt dues

16. Except arrears of subscription under this scheme or outstanding dues

to the Financial Institution on the specific authorisation of an employee, no
Govt dues like over payment of Pay and Allces, due to wrong fixation of pay,
licence fee etc can be made.

Financing from GP Fund

17. Non refundable withdrawal of an amount equivalent to one year’s

subscription permissible under exceptional circumstances when the financial
position of the explore does not permit him to contribute to both GPF/CPF
and this scheme.

Procedure of claiming amount due under the scheme

18. The employee on cessation in the Govt Service is required to submit an

application in Form No.4. Similarly in the event of death of an employee, the
NOK/Nominee has to submit the requisite application in Form No. 6. The
sanction of the competent authority is also required for payment of benefits
under the scheme. The Annexure’C’ (Pre-receipted bill) duly signed by the
employee, NOK/Nominee as the case may be which shall be submitted to
PAO GREF for early releasing payment.

19. The following documents are required to be enclosed with Annexure ‘C’
(Pre-receipted bill);-

a) Application on For No. 4 or Form No.6 as the case may.

b) Sanction of the competent authority.

c) Working sheet shown the amount due from Saving Fund.

d) Copy of Relevant part II order notifying the retirement/death.

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