Enhancement of Insurance Coverage under CGEGIS – BPMS Demand

Enhancement of Insurance Coverage under CGEGIS – BPMS Demand – Resolutions adopted in the Central Executive Committee meeting of BPMS.

BPMS Resolution regarding Enhancement of Insurance Coverage under CGEGIS

BHARATIYA PRATIRAKSHA MAZDOOR SANGH

(An Industrial Unit of B.M.S)

CENTRAL OFFICE : 2-A NAVIN MARKET, KANPUR-208001

REF: BPMS / RESOLUTION / 10(7/1/M)

Dated: 02.04.2018

To,

The Secretary,

Govt. of India, Min of Defence, South Block, DHQ PO,

New Delhi – 110011

Subject: Resolutions adopted in the Central Executive Committee meeting of BPMS.

Respected Sir,

With due regards, it is submitted for your kind information that the Central Executive Committee meeting of this federation has held on 27th  & 28th  March, 2018 at Ordnance Factory Estate, Dehu Road, Pune and 03 Resolutions have been unanimously adopted by the CEC of the federation & the same are enclosed herewith for your kind consideration and further necessary action please.

This federation is in full hope to get favourable consideration in this regard.

Thanking you in anticipation.

Enclosed: As Mentioned

Sincerely yours

(MUKESH SINGH)
Secretary/BPMS &
Member, JCM-II Level Council (MOD)

Read / Download Grant of Minimum Guaranteed Pension under NPS – BPMS REF: BPMS / RESOLUTION / 10(7/1/M) Dated: 02.04.2018

Resolution No.1

Enhancement of Insurance Coverage under CGEGIS

Central  Government  Employees  Group  Insurance  Scheme,  1980 was  notified on 01/11/1980 and came into force with effect from the forenoon of 01/01/1982.

The `scheme’ is intended to provide for the Central Government employees, at a l ow cost and on a wholly 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 lump-sum payment to augment their resources on retirement.

The rates of benefit under the scheme, till date is as under :

Category Rates of monthly subscriptions (Rs.) Insurance
Coverage (Rs.)
  As on 31/01/1989 After 01/02/1989  

A

40

120

1,20,000

B

20

60

60,000

C

10

30

30,000

D

05

15

15,000

Ever since then, except merging of Group “D” with Group “C” and subsequent change in subscriptions and coverage thereof, nothing has changed.

Taking cognizance of this static state of affairs, the 7th  CPC in its recommendations commented under Para 9.3.7 The Commission also took note of the fact that the Tables of Benefits published by Ministry of Finance are based on the mortality rate of 3.75 per thousand per  annum up  to 31.12.1987 and 3.60 per thousand  per annum thereafter. In its  report (brought  out  in  January 1997),  the  V  CPC  had  pointed  out  that  the  mortality  rate,  life expectancy and health delivery systems have improved over a period of time. They had highlighted the need “for a detailed review of the current mortality rates with a view to revising the apportionment between the Savings and Insurance Funds.” Since it was likely to take some time, they had recommended a ratio of Savings Fund to Insurance Fund of 75:25, with “appropriate machinery for a periodical review of the mortality rates and adjustment of the apportionment ratio.”

Further, under Para 9.3.8 All the three factors viz., mortality rate, life expectancy and health  delivery  systems  have further  improved  over  the  course  of  nearly  twenty  years following the V CPC recommendations. Accordingly, this Commission recommends that the ratio of Savings Fund to Insurance Fund be modified from the present 70:30 to 75:25, as an interim measure, pending a detailed review. It is also recommended that periodical reviews of mortality rates should be undertaken for suitable adjustment of the apportionment ratio. The Tables of Benefits may be modified accordingly.

After carefully examining all relevant aspects, the 7th  CPC finally recommended the following as revised rates and benefits:

Level of Pay Matrix Monthly Deduction (Rs.) Insurance Amount (Rs.)
10 and above

5000

50,00,000
Between 06 to 09

2500

25,00,000
Between 01 to 05

1500

15,00,000

However, vide notification No.1-2/2016-IC dated 25/07/2016, it was announced that”The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.”

However, in spite of lapse of more than 19 months, the concerned department is silent thus defeating the very purpose of the Government’s intention to replace the existing scheme with a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

The Central Executing Committee of Bharatiya Pratiraksha Mazdoor Sangh, at its meeting held at Dehu Road (Pune) deliberated on this very serious issue and demands that the  Government  should  immediately  notify  the  customized  group  insurance  scheme  for Central Government Employees with low premium and high risk cover.

Resolved on this, 28th Day of March, 2018.

You might also like