What is Central Government Employees Group Insurance Scheme ? How CGEGIS works ?
Particulars
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Description
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Name of the Scheme
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Central Government Employees Group Insurance Scheme (CGEGIS)
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Sponsored by
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Central Government
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Funding Pattern
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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.
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Ministry/Department
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Department of Expenditure
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Description
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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.
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Beneficiaries
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Individual, Family
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Benefits
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Benefit Type
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Material
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Eligibility criteria
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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.
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How to Avail
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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.
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Validity of the Scheme
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Introduced On
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01 / 01 / 1982
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Valid Upto
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12 / 11 / 2011
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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.
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.
S. No
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Things needed to know about Central Government Employees Group Insurance Scheme (CGEGIS)
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Detailed Explanation
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1
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The Insurance Scheme for government employees sponsored by whom?
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The Central Government of India sponsors for CGEGIS, which handles by Department of Expenditure.
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2
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Who are all the beneficiaries under this CGEGIS
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All central government employees and their respective family members are eligible to get merged with this insurance scheme
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3
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What are the monthly deduction details under this CGEGIS
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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
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4
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Insured amount under CGEGIS
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Current the insured amount is Rs. 1,20,000 and government plans to increase the sum amount to Rs. 50,00,000
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- 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.
- 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.
- 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.