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Central Government Employees General Insurance Scheme - CGEGIS

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One of the oldest scheme for Central Government Employees, and let we see how to calculate the Insurance amount...

Central Government Employees General Insurance Scheme - CGEGIS
Retirement Benefits : Terminal Benefits

CGEGIS scheme provides for the CG Employees the two benefit viz.
1. Insurance cover
2. Lumpsum Payment


A portion of monthly contributions paid while in service is credited in a Saving Fund, on which interest accrues. A Government servant while entering service has to apply in Form No. 4 of the above Scheme to the Head of Office, who shall issue a sanction for the payment of subscriber’s accumulation in the Savings Fund segment together with interest and arrange for its disbursement, soon after retirement. Payments under this Scheme are made in accordance with the Table of Benefit which takes in to account interest up to the date of cessation of service. Insurance cover benefit under this Scheme is available to the family in the event of death of the subscriber. No interest is payable on account of delayed payments under this Scheme.

The scheme, which is compulsory to all Central Government Employees, provides at a low cost and on contributory and self-financing basis, the twin benefits of an insurance cover to help their families in the event of death in service and a lumpsum payment to augment their resources on retirement.

Insurance & Savings Fund:-
A portion (30%) of the subscribing is credited to the Insurance Fund and the other portion (70%) to the saving find which earns interest at eh prescribed rate compounded quarterly.

Membership :-
Employees are enrolled as members of the scheme only from 1st January every year. From the actual date of appointment to 31st December of that year, he will be entitled only to Insurance cover.

Monthly Subscription & Amount of Insurance cover :-
 (X) : Applicable to all employees who were members of the scheme on 31/01/1989 and have opted to continue to subscribe at eh old rates.

 (Y) : Applicable to all employees who were members of the scheme on 31/01/1989 and have opted to subscribe at the revised rates with effect from 01/01/1990 and to those who joined service on or after 01/02/1989.

 Group to which the employee belongs will be determined with reference to the post held by him on a regular basis on the 1st January.

 On regular promotion of a member to a higher Group after the 1st January in any year, his subscription will be raised only from the 1st 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 is subsequently reverted to the lower group for any reasons.

 Subscription is payable till the end of service including the month in which an employee retires, dies, resigns, or is removed from service.

Benefits Payable :-
Retirement, resignation, etc., : The employee will be paid as per the Table of benefits.

Lumpsum due to him out of the Savings Fund for entire period of membership in the lowest group.

Amount due to him for the additional units by which subscription was raised due to promotion – for the period from which the rate was raised, to the date of cessation of membership.

Death while in service : The nomination / heir will be paid.

The amount of appropriate Insurance Cover to which the employee was entitled at the time of death.

Lumpsum and amount as in the case of (a) above, for the period till the date of death.

Only the Insurance Cover, if death takes place before becoming a member.

Nomination :-
If the employee has a ‘family’, he shall make such nomination only in fovour of a member or members of his ‘family’. However, a female subscriber can exclude her husband from her family for the purpose of this scheme by a notice in writing to the Head of Office.

‘Family’ means husband, wife or wives, parents, children, a ward, minor brothers, unmarried sisters, deceased son’s widow and children and where none of the parents of the members of the scheme is alive, a paternal grandparent. If any of the nominated members of the family subsequently ceases to be the member of the family under any circumstances, nomination made members of the family in equal shares.

In absence of valid nominations under the scheme, nomination made under CPF/GPF, the amount will be paid in equal shares to the widow/widows, minor sons and unmarried daughters.

In case of absence of any eligible member of the family, the payment may be made to other legal heirs on production of succession certificate issued by a competent Court of Law.

Debarring an eligible person from receiving Insurance amount :-
If a person who, in the event of death of a Government servant while in service, is eligible to receive the insurance amount, is charged with the offence of murdering the Government servant or for abetting in the commission of such an offence, his/her claim to receive insurance amount will be suspended till the conclusion of the criminal proceedings. On the conclusion, the person, if convicted, will be debarred from receiving the share of insurance amounts, which will be paid in equal shares to other eligible persons.

Other Points :
Recovery of Government does not permissible

Eligible for Income Tax exemption

No withdrawal / Loans / Advances are permissible

Member can be permitted by HOD to assign the insurance cover and accumulation in the savings find in favour of a recognized Finance Institutions as security for obtaining loans for construction / purchase of house / flat.

Illustation :-
An employee joined the scheme with effect from 1.1.1982
Retiring on superannuation on 31.12.2007


Entitlement of the employee, If he was a Group ‘D’ employee throughout :
When continued to subscribe at the old rate :
Amount as per table for cessation on 31.12.2007 = Rs. 11,515
When subscribed at the old rates up to 31.12.1989
and at eh new rate from 1.1.1990 = Rs. 13,646

Entitlement of the employee, If he was a Group ‘D’ employee 31.12.1986
And a Group ‘C’ employee from 1.1.1987:
When continued to subscribe at the old rate :
Amount as per table for cessation on 31.12.2007
For a monthly subscription of Rs.10 = Rs. 11,515

Amount as per table for cessation on 31.12.2007
For a additional monthly subscription of
Rs.10 (20-10) from 1.1.1987 = Rs. 6,276

Total = Rs.17,791

When subscribed at the old rate up to 31.12.1989
And at the new rate from 1.1.1990 :

Amount as per table for cessation on 31.12.2007
For a monthly subscription of Rs.10/15 : = Rs.13,646

Amount as per table for cessation on 31.12.2007
For an additional monthly subscription of
Rs.10/15 from 1.1.1987 = Rs. 8,409

Total = Rs.22,055

Source: centalgovernmentnews.blogspot.com



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