THE KERALA STATE EMPLOYEES' GROUP INSURANCE SCHEME RULES, 1984

 

PREAMBLE

In exercise of the powers conferred by Sub-section (i) of Section 2 of the Public Services Act, 1968 the Governor of Kerala hereby makes the following rules, namely:-

Rule - 1. Title and date of effect.

(1)       These rules shall be called the Kerala State Employees' Group Insurance Scheme Rules, 1984.

(2)       These rules shall come into force from the first day of September, 1984

Rule - 2. Objective.

(1)     The Kerala State Employees' Group Insurance Scheme, hereinafter referred to as "the 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 resources on retirement

(2)     Definitions:-

(i)       "Family" as defined in Rule 71, Part 111, K. S. R.

Rule - 3. Application

(1)     The 'Scheme' shall apply to-

(i)       all State Government employees appoint in accordance with the rules of recruitment,

(ii)      State Government employees borne on work-charged establishment on time scales of pay.

(iii)     State Government employees borne on contingent establishment on time scales of pay.

(iv)    Full time teaching and non - teaching staff of private schools and colleges under direct payment scheme and

(v)      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-

(i)       persons in casual employment,

(ii)      persons subject to discharge from service on less than one month's notice, and

(iii)     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.

(3)     Such State employees to whom the 'Scheme' applies are hereafter referred to as "employees", or "employees".

Rule - 4. 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 who join service on or after 1st September 1984.

(2)     Those 'employees who are-in service as on 1st September 1984 shall continue to subscribe or cease to subscribe to the Kerala State Employees' Family Benefit Fund with effect from 1st September 1984. Those who cease to subscribe to Family Benefit Scheme should get themselves enrolled as members of the Scheme with effect from the said date.

(3)     All 'employee' who enter service in a month other than September 1984, 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)     All "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.

Rule - 5. Subscription of members.

Grouping of employees are as follows:-

(The subscription for the scheme shall continue to be in units of Rs. 10 month)

[2]Order

(1)     The scales of pay of State Government employees were revised in the G. O. read as 3rd paper above. In the letter read as fourth paper above, the Director of Insurance has recommended to reclassify the scales of pay of Groups and revise the rate of subscription of Kerala State Employees Group Insurance Scheme.

(2)     Government after examining the Proposal in detail are pleased to reclassify the scales of pay of Groups and revise the rate of subscription of Group Insurance Scheme with effect from 1-9-1999 as shown in the Annexure to this order.

(3)     The above reclassification and revision of rate of subscription are not applicable to the teaching and non-teaching staff of aided schools, private colleges and privated polytechnics. Their cases will be examined separately and suitably orders issued.

(4)     All other employees now subscribing to the Group Insurance Scheme should come over to the revised rate of subscription with reference to the revised scales of pay as noted in the Annexure.

(5)     Suitably amendments to the Kerala State Employees Group Insurance Scheme Rules, 1984 will be issued separately.

 

Annexure

(The subscription for the scheme shall continue to be in units of Rs. 10 month)

[3][5.1. The subscription to the Scheme shall be in units of Rs. 10 per month 'D' Group employees shall subscribe for 3 units, 'C' Group Employees for 5 units. 'B' Group Employees for 7 units and TV Group Employees for 10 units. Thus the rate of subscription for a member of the 'Scheme' shall be Rs. 30, Rs. 50, Rs. 70 and Rs. 100 per month for Group D, C, B and A employees respectively]

[4][5.1 (a) Subscribers shall be allowed the option to take more units under the Scheme subject to the condition that such subscribers have not attained the age of 45 as on the date of option. Application for exercising option for taking more units shall be made during the month of September every year in Form No. 2. The position of allowing more units shall be reported, after the first deduction at the higher rate is effected, to the Director of Insurance. ]

[5][5.2 For example a Group 'D' Employee promoted or appointed on regular basis to Group 'C' in October, 1995 shall continue to subscribe at the rate of Rs. 30 p. m. upto August, 1996 and be eligible for the Insurance cover of Rs. 30,000 only in addition to the benefits from Savings Fund appropriate to his subscription. From September, 1996 his subscription shall be revised to Rs. 50 p.m. and shall become eligible for an Insurance coyer of Rs. 50,000 in addition to appropriate benefits from the Savings Fund. ]

5.3. On his regular promotion /appointment from one Group to another every member shall be informed by the head of office concerned the month from which the subscription to be deducted from his salary/wages is revised as in Form 2.

Rule - 6. Premium and insurance cover for 'employees other than members.

(1)     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 a subscription of Rs. 3 per month as the premium for every Rs. 10,000 of the insurance cover. From the date of next anniversary of the "Scheme' he shall pay subscription at the rate indicated in para 5. 1 above.

[6][For example a Group 'D' Employee entering service in October, 1995 shall pay a subscription of Rs. 9 p. m. as premium for an insurance cover of Rs. 30,000 for a period of 11 months upto August, 1996 and from September, 1996 his subscription shall be raised to Rs. 30 p. m and he shall become eligible for the benefits from Savings Fund in addition to the insurance cover of Rs. 30,000. Similarly a Group 'C' Employee entering service in October, 1995 shall pay a subscription of Rs. 15 as premium for an insurance cover of Rs. 50,000 for a period of 11 months up to August, 1996 and from September, 1996 his subscription shall be raised to Rs. 50 p.m. and shall become eligible for the benefits from the Savings Fund in addition to the insurance cover of Rs. 50,000.]

Rule - 7. 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 Insuarance Fund to be held in the Public Account of the State Government. The amount of insurance cover shall 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.

Rule - 8. Savings Fund.

(1)     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. 6, 875 for each unit of subscription shall be credited to a Savings Fund. The amount in the Savings Fund shall be held by the State Government in Public Account. The total accumulation of savings together with interest thereon shall be payable to the member on his retirment after attaining the age of superannuation or on cessation of his employment with the State Government or to his family on his death while in service.

(2)     The benefit admissible from the Savings Fund shall be as determined by Government from time to time and for the present as per illustrtion table attached herewith. This benefit is illustrative and in practice could be a little more or less than the amount shown in the table which has been constructed on the basis of individual's subscription reduced by the costs of insurance at mortality rate of 3. 75 per thousand and the compound interest of [7][12 per cent] thereon. If at any time the rate of interest changes and/or the cost of insurance changes the benefit available from the savings fund is liable to be changed correspondingly.

(3)     In the case of death of a member the payment of the amount of insurance shall be addition to the payment from the Savings Fund.

(4)     The positive balance under the Savings Fund shall be credited with the amount of interest calculated at the rate of notified by the Government for the purpose.

(5)     Subject to provisions of sub-rule 4 above, interest shall be allowed at [8](12 per cent) per annum on the balances in the Savings Fund for a block of five years commencing from the date the scheme comes into force.

Rule - 9. 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 subsequent month.

(3)     The subscription for a month shall be recovered by deduction from the salary/wage of the member/employee for the proceeding month respective of the date of actual payment of the salary/wage.

(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 initialed by their 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 their duty, leave or suspension.

(6)     No interest shall be levied on arrears of subscription if the non recovery is due to delayed payments of salary /wage.

(7)     [9][For example if a Group 'D' member/employee proceeds on ten months Leave Without Allowances from the 5th October, 1995 to 4th August, 1996 and no salary/wage is paid to him for any day from November, 1995 to July 1996 his subscriptions totalling Rs. 270 shall be recovered together with, interest calculated at the compound rate of 12% per annum in not more than three instalment, commencing from August 1996. )

(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 the 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 accretion to the Savings Fund in not more than three instalments.

Rule - 10. Payment from Insurance Fund/Savings Fund.

(1)     If a member retires on attaining the age of superannuation of otherwise ceases to be in State Government Service and his Service Book discloses that he has been a member of the 'scheme', the Administrator of the scheme 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 nominee (s)/ heir (s) of the 'employee' concerned in Form No. 4 submit an application in Form No. 5 and on receipt thereof shall forward it to the Administrator of the Scheme 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 bet

(a)      the amount of appropriate insurance to which he was entitled at the time of his death; plus.

(b)      the amount due to him out of the Savings Fund for the entire period of his membership in the lowest Group; and

(c)      [10][For example, if a Group 'D' Employee, who is a member of the 'Scheme' acquires a membership in Group 'C' and Group 'B' after 5 years and 15 years of service respectively and dies while in service after 30 years of total membership in all these groups, his nominee or nominees shall be paid the sum of the following amounts:-

(i)       the amount of insurance of Rs. 70,000 due on a monthly subscription of Rs. 70 being a Group 'B' Employee on the date of his death,

(ii)      the amount due from Savings Fund on a monthly subscription of Rs. 30 for 30 years,

(iii)     the amount due from Savings Fund on a monthly subscription of Rs. 20 (Rs. 50-30) for 25 years,

(iv)    the amount due from Savings Fund on a monthly subscription of Rs. 20 (70-50) for 15 years. ]

(5)     The amount payable to the 'member' who ceases to be in employment with the State Government on account of resignation, retirement etc, shall bet

(a)      the amount due to him out of the Savings Fund for the entire period of his membership in the lowest Group; and

(b)      the amount or amounts clue 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 so raised to the date of cession of his membership.

[11][For example, if a Group 'D' Employee who is a member of the Scheme acquires a membership in Group 'C' and 'B' after 10 years and 20 years of service respectively and retires on superannuation after 30 years of total membership in all these Groups he shall be paid the sum of the following amounts:-

(i)       the amount due to him from Savings Fund on a monthly subscription of Rs. 30 or 30 years,

(ii)      the amount due to him from Savings Fund on a monthly subscription of Rs. 20 (50-30) for 20 years,

(iii)     the amount due to him from Savings Fund on a monthly subscription of Rs. 20 (70-50) for 10 years)

(6)     If any 'employ' or member dies during a month before the recovery of subscription for that month from him, the amount due in respect of him shall be paid after deducting the subscription.

(7)     If any 'employee' or member joints later on an All India Service, he can either continue as a member of the scheme or seek, closure of accounts at his option.

Rule - 11. Withdrawals from Insurance Fund/Savings Fund.

(1)     It will not be permissible for any member or other beneficiary of the 'scheme' to withdraw any amount out of the Insurance Fund to which ) he has been subscribing. The amount due from the fund on the death of member of the 'scheme' while in service, shall be worked out in accordance with rule 10 and paid to his nocounting procedure prescribed by Government.

(2)     It shall also not be permissible for any member of the 'scheme' to withdraw any amount from the Savings Fund to which he has been subscribing. The amount due to him from the fund on his cessation of employment on account of resignation, retirement etc. , shall be worked out in accordance with rule 10 and paid to him or his nominee (s) in accordance with the accounting procedure prescribed by government.

Rule - 12. Loans/Advances from or against accumulations in Insurance Fund/ Savings Fund.

No loans or advances shall be paid to any member or other beneficiary of the 'scheme' from or against his accumulations in the Insurance Fund/ Savings Fund to which be he has been subscribing.

Rule - 13. Utilisation of accumulation in Insurance Fund/Savings Fund.

The accumulations in the Insurance Fund /Savings Fund shall be at the disposal of the Stale Government. Since the 'scheme' is wholly self-financing and self-supporting, the bulk of these 'accumulations may be utilised for housing schemes and other schemes for the benefit of the members of the 'scheme'.

Rule - 14. Mode of notification of the 'Scheme'.

The 'scheme' shall be notified to the 'employees' by displaying a copy thereof on the notice board or where no such notice board is provided, at a prominent place in the premises where the employees are working. A few copies of the 'scheme' may also be supplied to the recognised unions/associations of the employees. It will also be published in the Gazette.

Rule - 15. Action on the 'scheme' coming into force.

(1)     By the 10th of the month preceding the month in which the 'scheme' comes into forced, the Head of Office shall supply to the Drawing and Disbursing Officer a statement indicating the name, the Group and the date of birth of every 'employee' in service on the date of commencement of the scheme.

(2)     By the 10th of every month from the month in which the 'scheme' comes into force, the Head of Office shall supply to the Drawing and Disbursing Officer, names, group, dates of birth and dates of appointment of persons:-

(a)      Who may be appointed to any service or post under the State Government during the preceding month and who would be eligible for Insurance cover under the 'schemes' in terms of rule 6. 1;

(b)      Who have been enrolled as members of the scheme during the preceeding month in terms of rule 4. 3; and

(c)      who have been promoted/appointed from one Group to another and whose rate of subscription is revised in terms of rule 5. 2

Rule - 16. 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 to verify whether appropriate subscriptions are being recovered from all employees who have jointed the Insurance Fund or both the Insurance Fund and the Savings Fund under the 'scheme' and record a certificate to this effect.

Rule - 17. Nomination.

(1)     The Head 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 'Schemes' 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 alter lst 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 member of his family. In the case of married employee/member. , family for this purpose will include only the wife/ husband and children of the employee/member. In case he does not have a family as defined above at the time of nomination, he may nominated any person coming under 'family[12] 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 17.1, 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[13], 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 as is appropriate in the circumstances.

(5)     Any 'employee' or member of the 'scheme' may at any time cancel a 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 'employee' /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.

Rule - 18. The existing Kerala State Employees' Family Benefit Scheme.

(1)     Those Government employees who are subscribing to the Kerala State Family Benefit Scheme can also join this Scheme.

(2)     However, if they request to discontinue the Family Benefit Scheme, the amount remitted under the scheme shall be repaid to them at the time of leaving service.

(3)     Those 'employees' who join service on or after 1st September 1984 shall be exempted from joining the Kerala State Employees' Family Benefit Scheme.

Rule - 19. Administration.

The Director of Insurance is nominated as Administrator of the Scheme.

Rule - 20. Accounting.

The transactions relating to the 'scheme' shall be accounted for in accordance with the procedure laid down by the Finance Department in this behalf.

Rule - 21. Interpretation and clarification.

(1)     If any categories of 'employees' are not specifically classified into Group A, Group B, Group C, or [14][Group D] classification shall be assumed in accordance with the principles laid down in this regard separately.

(2)     In the actual implementation of the 'scheme if any doubt arises in regard to the interpretation of any of the provisions of this 'scheme[15] or if any point requires clarification, the matter shall be referred to the Finance Department whose decision shall be final.

Rule - 22. Review of the 'Scheme'.

The Finance Department may review the working of the 'scheme' every three years to ensure that the 'scheme' remains self-financing and self supporting.