What is Central Government Employees Group Insurance Scheme ? How CGEGIS works ?
Central Government Employees Group Insurance Scheme (CGEGIS): Ministry of Finance
Central Government Employees Group Insurance Scheme (CGEGIS) came into force from 1st January,1982. The scheme provides for two fold benefit, viz., (1) insurance cover to help their families and (2) lump sum payment to augment their resources on retirement.
Also Read : Need for revising CGEGIS (Group Insurance)
Details of Central Government Employees Group Insurance Scheme (CGEGIS)
|Name of the Scheme||Central Government Employees Group Insurance Scheme (CGEGIS)|
|Sponsored by||Central Government|
|Funding Pattern||The scheme has two funds namely (1) Insurance Fund and (2) Savings Fund. A portion of the subscription is credited to Insurance Fund and the other portion to the Savings Fund in the ratio of 3:7. The Savings Fund will earn interest at the prescribed rate to be compounded quarterly.|
|Ministry/Department||Department of Expenditure|
|Description||Central Government Employees Group Insurance Scheme (CGEGIS) came into force from 1st January, 1982. The scheme provides for two fold benefit, viz., (1) insurance cover to help their families and (2) lump sum payment to augment their resources on retirement.|
|Eligibility criteria||All the employees who had entered Central Government Service after 1st November,1980 will be compulsorily covered under the scheme from the date it came into force, i.e. from 1st January,1982.|
|How to Avail||The employees will be enrolled as members of the scheme only from 1st January every year. If an employee enters service on or after 2nd January in any year, he will be enrolled as a member only from 1st January of the next year.|
|Validity of the Scheme|
|Introduced On||01 / 01 / 1982|
|Valid Upto||12 / 11 / 2011|
CENTRAL GOVERNMENT EMPLOYEES’ GROUP INSURANCE SCHEME, 1980.
5.1 The Scheme, Central Government Employees’ Group Insurance Scheme (CGEGIS)
came into force from 1st January,1982. This scheme provides for the Central Govt. employees the two fold benefit viz. (1) insurance cover to help their families and (2) lump sum payment to augment their resources on retirement.
5.2 The scheme has two funds namely (1) Insurance Fund and (2) Savings Fund. A portion of the subscription is credited to Insurance Fund and the other portion to the Savings Fund in the ratio of 3:7. The Savings Fund will earn interest at the prescribed rate to be compounded quarterly.
5.3 All these
employees’ who had entered Central Government Service after 1st November,1980 will be compulsorily covered under the scheme from the date it came into force i.e. from 1st January,1982. The employees will be enrolled as members of the scheme only from 1st January every year. If an employee enters service on or after 2nd January in any year, he will be enrolled as a member only from 1st January of the next year. However, he will be entitled to insurance cover from the actual date of entry of service till the end of that calendar year by paying monthly subscription of Rs. 5/- p.m. as premium for every Rs. 15,000/ – of the insurance cover.
Similarly, on regular promotion of a member of a lower Group to a higher Group after 1st January in a year, his subscription will be raised from the 1st January of the next year.
Note :- If an employee once admitted to a higher Group is subsequently reverted to the lower Group for one reason or the other, he will continue to subscribe at the same rate as that of higher Group.
5.4 Contract employees, persons on deputation from State Government Public Sector Undertakings, or other autonomous organisations locally recruited staff in the Missions abroad, casual labourer, part-time and ad-hoc employees will not be covered by the scheme. It will also not apply to persons recruited in the Central Government after attaining the age of 50 years.
5.5 Re-employed Defence personnel availing of the extended insurance cover under the Group Insurance Scheme applicable to the members of Armed Forces shall not be eligible to become members of this Scheme until expiry of the extended insurance cover.
5.6 Subscription at the appropriate rate should be recovered by the DDO from each member every month irrespective of whether the member is on duty, leave or under suspension. In the case of absence on Extra Ordinary leave, subscription due should be recovered in arrears in not more than 3 instalments after the member rejoins duty, along with appropriate interest thereon. In the event of death of a member during Extra-ordinary leave, the DDO should recover arrears in subscription along with interest, from the payment to the nominee admissible under the scheme.
Note:- Subscription is payable till the end of service including the month in which an employee retires, dies or is removed from service. If an employee dies during a month before recovery of subscription for that month, his dues will be paid after deducting the subscription.
5.7 In the case of members proceeding on foreign service, the recovery of subscription would be watched by the PAO concerned in the same manner as recovery of leave salary and pension contributions is watched.
5.8 The Head of Office should obtain Nomination(s) in Form 7 or Form 8, as the case may be, from all members without delay, and after counter signature, have them pasted in their service books.
5.9 The Head of Office should ensure that Group-wise register of members is maintained in Form 9 and kept up-to-date. This register shall be sent to the DDO concerned once a year to verify whether appropriate subscription are being recovered from all employees who have joined the Insurance Fund or both the Insurance Fund and the Savings Fund under the Scheme and to record a certificate to this effect.
Central Government Employees Group Insurance Scheme (CGEGIS) Rules Eligibility Table after 7th Pay Commission
Many central government employees get a wide range of benefits from the Central Government Employees Group Insurance Scheme (CGEGIS). A portion of monthly contribution from every employee of offices that come under the central government throughout the service and the overall interest for these contributions plays the major role in the CGEGIS.
Below listed table describes the basic things about the central government CGEGIS plan.
|S. No||Things needed to know about Central Government Employees Group Insurance Scheme (CGEGIS)||Detailed Explanation|
|1||The Insurance Scheme for government employees sponsored by whom?||The Central Government of India sponsors for CGEGIS, which handles by Department of Expenditure.|
|2||Who are all the beneficiaries under this CGEGIS||All central government employees and their respective family members are eligible to get merged with this insurance scheme|
|3||What are the monthly deduction details under this CGEGIS||At present central government employees getting deduction of Rs.120 from their monthly salary and it is be increased to Rs. 5000 as per proposal place by central government|
|4||Insured amount under CGEGIS||Current the insured amount is Rs. 1,20,000 and government plans to increase the sum amount to Rs. 50,00,000|
Once people have entered the central government service, they have to apply for this scheme through the Form No. 4 to the head of office. The head of office is responsible for sanctioning the subscriber’s accumulation payment in the segment of Savings Fund along with interest. This fund can be received by the central government employees after their retirement.
In the event of death of central government employees, the CGEGIS is available to their family. All payments associated with this insurance scheme are as per the Table of Benefit at all times. Central government employees have to keep focusing on the Table of Benefit and make an informed decision about how they can make use of this CGEGIS.
Central Government Employees Group Insurance Scheme (CGEGIS) Important Factors:
- There are two types of funding patterns associated with the CGEGIS. The first type is insurance fund. The second type is savings fund.
- The ratio in which a portion of the central government employees salary is allotted for the insurance and savings funds is 3:7.
- Each contribution to the savings fund earns interests at a certain rate specified by the central government. The interest rate is compounded quarterly.
- The Department of Expenditure manages every aspect of the CGEGIS from the beginning to end of this scheme for every employee of the central government offices.
CGEGIS Table 1 2016 – Subscription of Rs.10 / month per unit from 1.1.1982 to 31.12.1989
Eligibility to join CGEGIS:
Every regular employee of the central government is eligible for the CGEGIS. Employees who are joining the service on any day and month of a year are considered as the member of CGEGIS from the January 1 of a year they joined.
On the other hand, they will be entitled for this insurance cover from the actual date of joining the service to the end of a year. They will be fully qualified member of this insurance scheme from the January 1 to the next year.
Bear in mind that re-employed defense personnel are not eligible for the CGEGIS until the expiry of insurance cover from the Group Insurance Scheme for Armed Forces.Once they get their existing insurance cover expired, they can meet the requirements for the CGEGIS easily.
Benefits under CGEGIS:
- There are many benefits for central government employees by the CGEGIS. The following details explain these benefits.
- The amount of contributions to the savings fund together with the overall interest will be paid to the central government employee when they leave their job or retire.
- Nominee or hires of the central government employees will receive the amount of insurance cover from this group belonged on the date of death and savings fund’s accumulation in case of the death of employees.
- If central government employees die before they were enrolled as members of CGEGIS, nominee or heirs of these employees will get the insurance amount only.
- Central government employees obtain housing loans by assigning their accumulation in the saving fun and the insurance cover. They cannot withdraw, loan or advance from their savings fund and insurance fund.
Central Government Employees Group Insurance Scheme (CGEGIS) change after 7th Pay Commission
- The 7th pay commission enhanced the CGEGIS that has remained unchanged for a long time. The latest enhancements in the CGEGIS attract and satisfy every employee of the central government.
- The level of employee from 1 to 5, 6 to 9 and 10 and above paid 30, 60 and 120 per month for the insurance amount 30000, 60000 and 120000 respectively so far.
- The 7th pay commission proposed that the level of employee 1 to 5, 6 to 9 and 10 and above can pay 1500, 2500 and 5000 per month for the insurance amount 1500000, 2500000 and 5000000 respectively hereafter.
CGEGIS Table of Benefits for previous period