1. We seek your kind intervention to consider Revision of coverage & monthly subscription on Central Government Employees Group Insurance Scheme (CGEGIS) as per the recommendations of 110th report on “Pensioner’s Grievances-Impact of Pension Adalats and Centralized Pensioners Grievance Redress and Monitoring System (CPENGRAMS)”
2. Rates of subscription and insurance cover for Central Government Employees Group Insurance scheme (CGEGIS) were last revised in January 1990. Recommendations of Fifth & Sixth CPCs on CGEGIS rates of subscription & insurance cover were not implemented by the Government. Continuing the same rates of insurance amount for 30 long years defeats the basic purpose of providing insurance cover to the employees so as to extend adequate security to the families in the event of employees’ death.
3. In para 3.3. of 110th report on “Pensioner’s Grievances-Impact of Pension Adalats and Centralized Pensioners Grievance Redress and Monitoring System (CPENGRAMS)”, it was recommended that, “The Committee is of the view that the benefits provided by social security systems should improve quality of life, support independence and compensate for the loss of income after retirement. As regards CGEGIS, the Committee notes that the monthly deduction as well as the insurance amount have remained unchanged since 1990. In the present context, the insurance cover provided by CGEGIS seems to be too meager to be commensurate with the elevated cost of living. Therefore, the Committee recommends the Government to implement the recommendations of Seventh Central Pay Commission and increase the Insurance amount to Rs. 50,00,000, Rs. 25,00,000 and Rs.15,00,000 for Group ‘A’, ‘B’ and C officers/ staff respectively with commensurate enhancement in monthly contribution of Rs. 5000, Rs. 2500 and Rs. 1500 for respective Groups of officers/ staff.
4. In our earlier memorandum (copy attached), we have submitted all detailed justifications with low premium and high risk cover,
a) Cabinet decision taken on 29.06.2016 not to accept the recommendations of 7th CPC due to steep hike in monthly subscription towards CGEGIS recommended by the commission. b) Cabinet decision and direction to Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover. c) Premium for risk coverage in insurance policies have come down very drastically since 1990. d) For 38.6 lakh sanctioned strength of Central Government employees covered in the CGEGIS, subscription for the insurance amount of Rs.50 lakh, Rs.25 lakh and Rs.15 lakh has to be much lesser than LIC’s policies which are offered for individuals and for groups. e) Availability of LIC policies for the insured amount of Rs.50 lakh with much less premium, etc.
5. OUR PROPOSALS
For the sum assured recommended by 7th CPC the following rates of Monthly subscription @ 20% less than the Premium for Individual Term Insurance plus Savings Fund as derived in table-3 above are proposed,
Proposed monthly subscription for CGEGIS – (20% less than LIC’s Jeevan Amar Term Assurance Plan’s premium)
Pay Level of Employee
Insurance Amount Recommended by 7th CPC Rs.
Insurance Fund (25%) Rs.
Savings Fund (75%) Rs.
Total Monthly Subscription Rs.
Level 10 & above
Level 6 to 9
Level 1 to 5
7th CPC Central Government Employees Group Insurance scheme
a) Monthly subscriptions of Rs.1920, Rs.960 and Rs.640 for Sum Assured of Rs. 50 lakh, 25 lakh and 15 lakh for the Levels proposed by the 7th Pay Commission respectively, and payable to the family of the deceased employee in case of an employee’s death. b) Ratio of the Insurance Fund and Saving Fund should be 25%:75% respectively. c) In case of retirement, employees be paid a maturity benefit in proportion to the subscription, length of service and applicable interest rates.