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Group Insurance scheme 1982

Group Insurance Scheme, 1982 came into force w.e.f   2.10.82 (FN)

Group Insurance Scheme, 1982 is applicable to all Govt. employees except who are on deputation from other States, Public sectors employees, Part time, Work charged and ad-hoc employees. It is compulsory for those regular employees who entered Govt. Service on or after 15.8.1982. It is not applicable to those who are recruited after the age of 50 years.

This scheme was optional for Govt. employees who were in Govt. scheme before 15.8.1982. It a Govt. employee did not opt out of scheme by 30.9.82, the scheme was automatically made applicable to him her.         

Date of Anniversary:-

If a Govt. employee enters Govt. service other than the month of October, he/she is eligible for membership from the next anniversary of the scheme. For example if a govt. employee enters Govt. service on 12.11.1983, he/she is eligible for membership from 2.10.1984. This procedure was continued up to 31.12.89. After 31.12.1989, the anniversary is fixed 1st January of every year. If a Govt. employee who enters Govt. service between 2^nd January to 31^st December of a year shall become member of the Scheme with effect from 1^st January of succeeding year.

Amount of Contribution:-

                        The employee’s contributions towards the scheme in units is as under:-

                        Group D                       1 Units

                        Group C                       2 Units

                        Group B                       4 Units

                        Group A                       8 Units

                        The value of each unit is as under:-

Position of insurance on promotion:-

                        If a employee is promoted to one group to another group, his/her subscription for higher Group will be changed from the date of anniversary i.e. on 1st Jan. If he/she dies while in service his/her nominee/family will get the insurance amount of lower group. For example,  If a Jr. Asstt. is promoted to Supdt-II in the month 6/2010, but he dies on 24.12.10. His nominee/family will get insurance amount of Rs.30, 000/- only.

                              If a Govt. employee is reverted to lower group his/her subscription of higher group will not be reduced and he / she shall continue to be covered for insurance for the same higher group amount.

Rate of Insurance:-

                        The insurance cover provided under this scheme is Rs.1000/ against each rupee of subscriptions in case of sudden death while in service. At present rate of Insurance Cover (in case of sudden death while in service) is as under:-

                        Group D                       Rs. 15,000/-(Now 60000)

                        Group C                       Rs. 30,000/-(Now 120000)

                        Group B                       Rs. 60,000/-(Now 240000)

                        Group A                       Rs. 1,20,000/-(Now 240000)

Investment of Money:-

5/16 i.e. 31.25 % of the amount of subscription w.e.f 10/82 to 9/88 and 30% w.e.f 10/88 onwards is credited into the Govt.  Account for providing Insurance cover to the members of scheme.

70% of subscription amount along with interest is credited to saving fund of the subscriber. This amount is payable to the subscriber at the time of retirement, dismissal and resignation. In other words Rs. 7 out of Rs. 10, Rs. 14 out of 20, Rs. 21 out of 30, Rs. 42 out of 60, Rs. 84 out of Rs.120 are credited to saving fund of the subscriber.

Calculation of Interest of Saving Fund:-

                        Every year Govt. issues unit wise membership table depicting balance at the end of every month. It includes interest component………(Para 8 (2) of Scheme)

                        Due to sudden death while in service nominee/family will receive the amount of insurance cover of the Group and saving fund of the subscriber.

Position regarding deductions of subscriptions:-

                        Subscription of GIS becomes due on the 1st day of every month.

Responsibility of deduction of subscription from the salary of subscriber lies with the Drawing and Disbursing Officer.  Govt. circulated Judgment of Hon’ble High Court to all Govt. Departments, Where in it was stated that a Class III employee entered into Govt. service in Feb. 1992 & he died while in service in June 1992. But the concerned Drawing and Disbursing Officer did not deduct the amount of subscription from the salary of the employee.  It was held that it was the responsibility of Drawing and Disbursing Officer to deduct subscription. Therefore it was ordered that   Insurance amount of Rs. 30,000/- be paid.

Deduction of subscription is required to be deducted every month including the month of retirement, dismissal, resignation & suspension, except in that month in which subscribed remained on leave without pay for full month.

If salary is drawn late from Govt. treasury due to some reason, no interest will be charged. But when on the subsequent occasion salary is drawn in lieu of leave without pay, full subscription will be deducted along with interest. Due subscriptions can be deducted in lump sum or maximum in three installments. If subscriber dies during leave without pay his/her nominee will get due amount after deduction of subscription along with interest.                                                                                                           

Loan/Income Tax Facility:-

                        Due to poor financial condition of the subscriber, he/she is eligible to get Non-refundable advance equivalent to the annual subscription from General Provident Fund .

Income Tax rebate is admissible on the annual subscription of Group Insurance Scheme.

Responsibility of Head office regarding sanction of Amount:-

                        Head of Office is competent to accord sanctions to pay amount of saving fund.

                        In case of sudden death, request in form Group Insurance Scheme-6 will be obtained from the nominee by the Head of Office. After getting request sanction to pay amount of saving fund and Insurance fund will be accorded by the Head of Office. It will be ensured that full subscription is deducted for the month in which death occurs.

Position in case of Death/Retirement:-

                        In case of sudden death while in service nominee or family members will get the amount of insurance cover of that Group in which he/she was member…………..(Para 11 (3) of Scheme)

                        The following amount is payable in case of death/resignation

  In case of death                                                In case of retirement/Dismissal/resignation

1. a) Insurance cover of that Group in which a) saving amount of units of lower Group.

employee was member.

1. b) Amount in lieu of units of saving fund of b) Additional amount in lieu of  promotion              lower Group.                                                                      (from lower to higher Group.) If any

1. c) Additional amount in lieu of promotion  from lower to higher Group.

Position regarding wrong deduction:-                                                                  

If any amount is deducted erroneously towards Group Insurance Scheme from the salary of an employee who was not a member of the scheme, the same amount will be refunded.

No advance will be sanctioned in favour of subscriber of family member from the saving fund.

Responsibility of Head of office regarding membership:-

                        In the year 1982, this scheme was required to be  brought to the notice of all employees.

Option of those employees duly counter signed who opted this scheme was required to be kept in their service books.

                        Up to 10th of every month a list of employees who joined govt. service during the last month mentioning date of birth, Group etc. is required to be sent to the Drawing Disbursing Officer by the Head of Office.

                        Employee will be made member in form G-1 by Head of Office indicating date of membership, amount of subscription.

                        Head of Office will maintain employee wise register in form GIS-11 and record a certificate that subscription has actually been deducted.

Nomination of Fund:-

                        Head of Office will obtain nomination in the prescribed form from the member of this scheme. Minor employee is not eligible to exercise the right of option. He/She becomes eligible to exercise to right of option when he/she gets majority. Only family members can be nominated. If employee/subscriber wants to nominate more than one person, he/she has to specify the share of every member.

                        Nomination can be cancelled at any time with the condition that there should be a fresh nomination form attached with the cancellation   request.

Nomination will be counter signed by the Head of office and its entry is required to be recorded in service book.

Fresh nomination will come into being as & when it is received in the office.

Head of Office will issue annual statement to every member of this scheme indicating opening balance, deposit during the year, interest allowed &closing balance.