SO FAR VISITED

SO FAR VISITIED
please visit postalguide100.blogspot.in - Solved question Paper IPO 2012 Paper III and model question papers for various examination

Tuesday, August 10, 2010

Need for revising CGEGIS (Group Insurance)?!

It came into force from 1st January,1982, and provides employees either the life insurance cover in the case of death during service or a maturity amount in the case of retirement from service.

A portion of the subscription is credited to Insurance Fund and the other portion to theSavings Fund in the ratio of 3:7. The Savings Fund will earn interest at the prescribed rate to be compounded quarterly.

Monthly subscription, life insurance sum assured and Maturity amount applicable for different cadres are as follows

Employee CadreContribution per Month (Rs.)Insurance cover (Rs.)
A1201,20,000
B6060,000
C3030,000
D1515,000

Features of this Scheme:

  • On Resignation/Retirement :- Amount of subscription credited to the Savings Fundalong with interest thereon will be paid to the employee.
  • On Death : Amount of insurance cover of the group to which he belongs on the date of death and the accumulation in Savings Fund will be paid to his nominee/heirs.
  • If an employee dies before he was enrolled as a member (i.e. between the date of his joining service and the following Ist January), only the insurance amount will be paid to the nominee/heirs.
  • Employee can assign the insurance cover and accumulation in the savings fund to a recognized financial institution, for obtaining housing loans. However, no loans/advance or withdrawals are permitted from Insurance Fund/Savings Fund.
  • The amount of subscription is eligible for Income Tax Rebate u/s 88 of IT Act.

No comments:

Post a Comment

LinkWithin

Related Posts Plugin for WordPress, Blogger...