GROUP INSURANCE SCHEME 2011

GROUP INSURANCE SCHEME
Objective


The Kerala State Employees’ Group Insurance Scheme, is intended to provide for the State employees, at a low cost and on a wholly contributory and self-financing basis the twin benefits of an insurance cover to help their nominees in the event of death while in service and a lumpsum payment to augment their resource on retirement.
Application


1.  The ‘Scheme’ shall apply to -
  • all State Government employees appointed in accordance with the rules of recruitment,
  • State Government employees borne on work-charged establishment on time scales of pay
  • State Government employees borne on contingent establishment on time scales of pay,
  • Full time teaching and non-teaching staff of private schools and colleges under direct payment scheme and
  • Employees, other than those mentioned at (i) to (iv) above, to whom the “Scheme: may be extended under orders of Government.
2.  The ‘Scheme’ shall not apply to-
  • persons in casual employment,
  • persons subject to discharge from service on less than one month’s notice, and
  • persons for whose appointment and other matters provisions are made by or under any law for the time being in force or in any contract in regard to matters covered by such law or such contract.
Membership
  1. Membership of the ‘scheme’ shall be optional for all those ‘employees’ who are in service as on 1st September 1984 and compulsory to those in service on or after 1st September 1984.
  2. Those ‘employees’ who are in service as on 1st September 1984 continue to subscribe or cease to subscribe to the Kerala State Employees’ Family Benefit Scheme with effect from 1st September 1984.  Those who cease subscribe to Family Benefit Scheme should get themselves enrolled as members of the scheme with effect from the said date.
  3. All ‘employees’ who enter service in a month other than September   after the ‘scheme’ has come into force, shall be enrolled as members of the ‘Scheme’ on the next anniversary of the ‘Scheme’.  Those joining in September will be enrolled immediately.
  4. Every “employee” enrolled as member of the ‘Scheme’ shall be informed by the head of office concerned the date of his enrolment and the subscription to be deducted from his salary/wages in Form I.  This will also be entered in the Service Books of the employees.
Subscription of members


Grouping of employees is as follows:-

Scale of pay

Group
Rate of subscription (Rs.)
Rs.29180 - 43640 and above A 300
Rs.18740 - 33680 and above but below Rs.29180 - 43640 B 250
Rs.9190 = 15780 and above, but below Rs.18740 - 33680 C 200
Rs.8500 - 13210 and above, but below Rs.9190 = 15780 D 150
(The subscription for the Scheme shall continue to be in units of Rs.10 per mensom)
In the event of regular promotion/appointment of a member from one Group to another, his subscription shall be revised, from the next anniversary of the ‘scheme’ to the level appropriate to the Group to which he is promoted or appointed.  Until the date of the next anniversary of the ‘scheme’ he shall continue to be covered for insurance for the same amount for which he was eligible before such promotion/appointment.
Premium and insurance cover for ‘employees’ other than members .


An  ‘employee’ entering service in a month other than September falling  after September, 1984 shall be given the benefit of insurance cover applicable to the Group to which he belongs from the date of joining Government service to the date of his becoming member of the ‘scheme’ on payment of subscription of Rs.3/- per month as a premium for every Rs.10,000/- of the insurance cover.


Insurance Fund and insurance cover for members
  1. In order to provide an insurance cover to each member of the ‘scheme’ such portion of the monthly subscription as may be specified from time to time under orders of Government and for the present an amount of Rs.3.125 for each unit of subscription shall be credited to an Insurance Fund to be held in the Public Account of the State Government. The amount of insurance cover shall be Rs.10,000 for each unit of subscription.  It shall be paid to the nominee/nominees of the member who dies due to any cause, while in service.
  2. The positive or negative balance under the Insurance Fund shall be credited or debited, as the case may be, with the amount of interest calculated at the prevailing rate of interest of 6% or as fixed by Government from time to time.
Recovery of subscription.
  1. The subscription of a member for a month shall fall due at the commencement of the normal working hours on the first day of the succeeding month.
  2. The subscription as a premium for the insurance cover on joining Government service shall initially fall due on the commencement of first day of the subsequent month.
  3. The subscription for a month shall be recovered by deduction from salary/wage of the member/employee for the preceding month, irrespective of the date of actual payment of the salary/wages.
  4. The subscription shall be recovered every month including the month in which the member/employee ceases to be in employment on account of retirement, death, resignation, removal from service etc., and entered in the pass book prescribed in Form 9 and attested by the Drawing and Disbursing Officers concerned in the case of non-gazetted officers.  Self drawing officers may enter the details and sign themselves.
  5. The Drawing and Disbursing Officer shall recover the subscription from the members/employees irrespective of their being on duty, leave or suspension.
  6. No interest shall be levied on arrears of subscriptions if the non-recovery is due to delayed payments of salary/wages.
  7. If an ‘employee’ or a member is on leave without allowances and there is no payment of his salary/wages for the period, his subscriptions for such period shall be recovered with interest admissible under the ‘scheme’ on the accretions to the Savings Fund in not more than three instalments commencing from his salary/wage for the month including the month in which he resumes duty after leave.  If an ‘employee’ or a member dies while on leave without allowances, the subscriptions due from him shall be recovered with interest admissible under the ‘scheme’ on the accretions to the Savings Fund from the payments admissible to his family.
  8. If an ‘employee’ or a member proceeds on deputation or on foreign service, the borrowing authority/foreign employer shall be requested to effect the recovery of the subscription and credit the same to the relevant heads of account.  It shall be ensured that necessary clause to this effect is included in the terms of deputation/Foreign Service in future.  The recovery of this amount shall be watched in the manner specified in the accounting procedure prescribed by Government.  If at any time the recovery of subscription falls in arrears, the same shall be recovered with interest admissible under the ‘scheme’ on the accretions to the Savings Fund in not more than three instalments.
Payment from Insurance Fund/Savings Fund
  1. If a member retires on attaining the age of superannuation or otherwise ceases to be in State Government Service and his Service book discloses that he has been a member of the ‘scheme’ the Director of Insurance shall issue a sanction for the payment of the member’s accumulation in the Savings Fund after obtaining a simple application in Form No.3
  2. If an ‘employee’ or a member dies while in service and his Service Book discloses that he was given the benefit of insurance cover or was a member of the ‘Scheme’ the Head of Office shall address the nomionee(s)/heir(s) of  the ‘employee’ concerned in Form No.4 to submit an application in Form No.5 and on receipt thereof shall forward it to the Director of Insurance who shall issue a sanction for the payment of the amount of insurance or/and the accumulation in the Savings Fund to him (them).
  3. The amount payable to the nominee(s)/heir(s) of an ‘employee’ who has the benefit of an insurance cover only shall be the amount of insurance appropriate to his group.
  4. The amount payable to the nominee(s)/heir(s) of a member of the ‘scheme’ who dies while in service shall be-
  • the amount of appropriate insurance to which he was entitled at the time of his death; plus
  • the amount due to him out of the Savings Fund for the entire period of his membership in the lowest Group; and
  • the amount or amounts due to him for the additional units by which his subscription was raised on each occasion due to appointment/promotion to higher group for the period from which the rate of subscription was raised to the date of his death.


Register of Members


The Head of Office shall ensure that Group-wise register of members is maintained in Form No.8 and Pass Book kept up-to-date.  The Drawing and Disbursing Officer concerned shall inspect these registers once in a year and Disbursing Officer concerned shall inspect these registers once in a year to verify whether appropriate subscriptions 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 record a certificate to this effect.


Nomination
  1. The Head of Office shall obtain from every ‘employee’ a nomination conferring on one or more persons of the family the right to receive the amount that may become payable under this Scheme’s in the event of his death before attaining the age of superannuation.  In the case of employees’ who are in State Government Service as on 1st September, 1984, such nomination shall be obtained immediately and in any case within two months and in the case of employees’ who join State Government Service on or after 1st September, 1984, such ‘nomination’ shall be obtained along with the joining report.
  2. If any ‘employee’ or member of the ‘scheme’ has a family at the time of his making the nomination he shall make such nomination only in favour of a member or members of his family.  In the case of married employee/member, family for this purpose will include only the wife/husband as defined above at the time of nomination.  He may nominate any person coming under ‘family’ as defined in Rule 71, Part III, Kerala Service Rules.  However, such nomination will become invalid in the event of his acquiring a family as defined above.  On acquiring the family, he shall make a fresh nomination in favour of the family.
  3. If any ‘employees’ or member nominates more than one person under rule 17 he shall specify in the nomination the amount of share payable to each of the nominees in such a manner as to cover the whole of the amount payable under the ‘scheme’, failing which the amount payable under the ‘scheme’ shall be equally distributed among the nominees.
  4. The nomination shall be made in Form No.6 or Form No.7 appropriate in the circumstances.
  5. Any ‘employee’ or member of the ‘scheme’ may at  any time cancel nomination by sending a notice to the Head of Office along with a fresh nomination made in accordance with the above provision.
  6. The nomination received from the ‘employees’/members shall be countersigned by the Head of Office and pasted on their Service Books.  The Head of Office shall also make an entry in the service book that the nomination has been duly received.

Procedure for Enrolment, Payment etc.



Enrolment of Self Drawing Officers viz, Gazetted Officers and those who draw pay and allowances on countersigned salary bills -  In G.O.(P) 655/84/Fin. Dated 13.11.1984, Government have ordered that the application in Form GIS-A in respect of self drawing officers should be given to the Head of Office and that of the Head of Office to the next higher authority and that the nominations of these officers are to be kept by the Heads of Departments concerned.  For ensuring prompt deduction of subscriptions towards Group Insurance Scheme and to facilitate a better control in keeping the nominations, collection of subscriptions and forwarding of claims, the Heads of the Department will discharge the duties of the head of office as per the Scheme, in respect of Gazetted Officers, drawing salary based on Pay Slips as per Rule 164 of K.T.C, Volume I.  For Officers who draw salary on countersigned salary bills as per exception below Rule 169(b) of K.T.C., Volume I, the Officers who countersign the Salary Bills will discharge the duties of the Head of Office.  The nominations obtained from such officers should be pasted in their Service Books.


Enrolment of members other than Self Drawing Officers- Instructions relating to the enrolment of members were issued in Government Circular No.71/84/Fin. Dated 8.10.1984.  An employee who wishes to join the scheme should submit an application in Form GIS-A to the Head of the Office along with his nomination in Form No.GIS-6 or Form No.GIS-7.  The Head of Office will issue the Memorandum in Form No.GIS-I enrolling him/her as a member and enter the name of the employee in the Register of Members in Form No.GIS-8.  He will also enter in red ink on the top of page one of the Service Book, the group, the rate of subscription and the date of encashment of the bill in which the first deduction is made.


Forwarding the List of Members to the Director of Insurance- At the end of each anniversary, after encashment of the bill in which the first deduction is made, every Head of Office/D.D.O. should forward to the Director of Insurance in Form GIS-C a list of members who have joined the Scheme, since the last anniversary.  The Director of Insurance will assign Account Nos. (Revenue District-wise) and forward the Pass Books in Form No.GIS-9 to the Head of Office, from whom the list has been received.


Register of Members in Form No.GIS-8 (Vide Para 16 of the Scheme) – The Group Insurance Account numbers when received from the Director of Insurance should be noted against each name in the Register of members maintained in each Office.  While noting the Account Nos. if one member is seen assigned more than one Account Number the fact should be intimated to the Director of Insurance immediately.  One pass book with the Account Number may be retained and the remaining Pass Books should be returned to the Director of Insurance so as to avoid duplication of claims in future.


The group and rate of subscription should also be noted against each employee/member in the Register of Members, if only a single register is maintained for different groups.  However, if separate registers are maintained for each group, the rate of subscription alone need be noted at the top of the Register on each page.  Every Drawing and Disbursing Officer should record a certificate (referred to in Para 16 of the Scheme) in the following form in the Register of Members in the first week of October at the end of that year’s anniversary.  “Certified that (i) subscriptions at the appropriate rates have been recovered from all the members during the year; and (ii) all members who have been subscribing to the insurance fund only have been enrolled as full members, subscribing at the rate of Rs.10 per unit per mensem from this September onwards”.


Recovery of Subscriptions without default – Once an employee/member is enrolled, the subscription shall be recovered every month including the month in which the employee/member ceases to be in employment (vide Para 9 of the Scheme).  The recovery of subscription without default, should be ensured through the Register of Members in Form No.GIS-8, the L.P.C and the register maintained in Form GIS-E to watch the recovery of subscriptions from employees/members on leave without allowances, suspension, deputation/foreign service etc.


Recovery of subscription by deduction from Pay Bills – The deduction towards Group Insurance Scheme should be entered in a separate column in the Pay Bills as in the case of General Provident Fund deductions.  In the portion of the Pay Bill on the facing sheet pertaining to classification, it must be written separately “Group Insurance Scheme Savings Fund” and the total subscription recovered from the employees shown against it.  A deduction statement in Form GIS-B1 indicating only the total amount of credit under the Group Insurance Scheme should be attached to the Pay Bill.  For example, if the total deduction in one Establishment Bill for November 1984 towards Group Insurance Scheme is Rs.500 the deduction statement need show only the total ie., Rs.500(in words and figures).  Self Drawing Officers should furnish the deduction statements in Form GIS-B.


T.R.72 Certificate in respect of Self Drawing Officers – There are two categories of Self Drawing Officers:
  1. Gazetted Officers drawing salary based on Pay Slips issued by the Accountant General (vide Rule 164 of K.T.C. Vol. I)
  2. Officers drawing salary on countersigned salary bills (vide exception below Rule 169 (b) of K.T.C. Vol. I)
These officers should give their applications in Form GIS-D to the relevant Treasury/cheque issuing/countersigning officers for T.R.72 Certificates after they join the Group Insurance Scheme or when the group is changed.  This certificate should be obtained by a member before the next anniversary of the scheme(i.e.) before the next September.  When the Pass Book is received from the Director of Insurance, the certificate in original should be pasted in it.


The Treasury/cheque issuing/countersigning Officers should issue the certificates as prescribed in Form GIS-D Gazetted Officers drawing salary on Pay Slips should forward self attested copies of the T.R.72 certificates to their Heads of Departments who will make necessary entries in the Register of Members in Form No.GIS-8.  The Heads of Departments should see that copies of such certificates are received by them before the commencement of the next anniversary by making a note in the Register of Members.


“The countersigning officers should ensure that T.R.72 certificate is issued on request to all officers, whose salary bills are countersigned by them.  The fact of having issued the certificate should be noted on page 1 of the Service Books of these Officers”.


Transfer of Members and L.P.C – If an employee/member is transferred from one Department/Office to another Department/Office, the L.P.C. issued as per Rule 182 of K.T.C., Vol. I should clearly indicate the group to which he belongs and the year and month of commencement of his continuous membership in each group.  These details will be available on page one of the Service Book (vide Rule 5)


The Heads of Offices/Drawing and Disbursing Officers/Treasury Officers/Cheque issuing Officers/Countersigning Officers will be responsible for ensuring that the above details are entered in the L.P.Cs.  The Drawing and Disbursing Officer/Heads of Office to which he is transferred will enter the rate of deduction to be made and other details in the Register of Members in Form No.GIS-8.  In respect of self drawing Officers, the Treasury/Cheque issuing/countersigning Officers will enter the details in T.R.72 (combined Register of L.P.Cs and pay slips) or corresponding registers.  The recovery of subscriptions towards Group Insurance from the individuals concerned will be effected beyond the month up to which such subscription has been recovered earlier.


The Finance Department will take steps to modify the form of L.P.C.(vide Rule 182 of K.T.C., Vol. I) to add the words Group, Rate of Recovery, Date of encashment of the bill in which first deduction was made under each Group on Page-2 below “Details of Recoveries”.


Change of group on promotion – Para 5.2 of the Scheme refers to regular promotions and consequent changes of groups.  It is clarified that unless the promotion has been made for a specified or short period and if it is not expected that the employee would revert to a post in the lower group at the end of that period, he should be deemed to have been promoted, for the purpose of this scheme, on a regular basis and his subscription should be recovered from him accordingly.  The question whether the employee would revert to a post in the lower group may be decided by the administrative authority according to his discretion, taking into consideration the circumstances of each case.


In such cases, the employee should be informed of the change of group and the revised rate of subscription in form No.GIS-2 and the fact should be reported, after the first deduction at the higher rate is effected, to the Director of Insurance in Form GIS-C with suitable modifications.  The Director of Insurance will note the change of group against the Account Number of the employee.  The change in group should invariably be indicated in the Last Pay Certificate also, wherever necessary.


When a group is changed by a member, an entry thereof should be made in the Index Register against his Account Number in the Directorate of Insurance.


Once a person has been admitted to a higher group, the rate of his subscription will continue at the same level even if he reverts to a past in the lower group later on.

Payment from the Insurance Fund and the Savings Fund –
Para 10 of the Scheme deals with payment from the Insurance Fund/Savings Fund.  The Head of Office will forward to the Director of Insurance, at the earliest, an application in Form No.GIS-3 along with Pass Book in the case of retirement.  In respect of employees who die while in service, the application should be forwarded in Form No.GIS-5 along with the Pass Book, nomination and death certificate in original.  Claims in respect of Self Drawing Officers should be forwarded by the Head of the Office to which he was attached.  T.R.72 certificate referred to in Rule 12 also should be forwarded.  The Head of office while forwarding the claim shall report, without fail, the period of default and the amount of arrears of subscription, if any, (Please also see Rule 21 below).



Settlement of claim – Action in the Directorate of Insurance
The Director of Insurance will verify the claim, when received from the head of office, with reference to the original entry in the Index Register and other records.  If the claim is in order, he will issue separate sanctions for payment from the Insurance Fund and the Savings Fund in Form GIS-F as per paras 10.1 or 10.2 of the scheme as the case may be.


Recovery of subscription from Employees on leave without allowances, Deputation, Foreign Service or under suspension – For watching the recovery of subscriptions from employees on leave without allowances, deputation, foreign service or under suspension, the head of the parent office should maintain a register in form GIS-E.  The recovery of the amounts of subscription should be watched in the same manner as in the case of leave salary and pension contribution.


In cases, where subscriptions for a continuous period of 6 months are in default, the membership will automatically cease and in such cases, the members will also lose their entitlements under the Insurance Fund, in the event of their death.  The accumulations in their Savings Fund with interest upto the dates of termination of their membership will be repaid to them ONLY at the time of retirement/death, whichever is earlier.


Group Insurance Scheme- Rate of Subscription
Revised
-
Revised Rate of Subscription
50 വരെ പ്രായമുള്ളവർ പുതിയ പോളിസി എടുക്കണം. നാലാം പേജിന്റെ കോപ്പി അറ്റാച്ച് ചെയ്തത് കാണുക.  GIS Rules 2010