Group Insurance Scheme Enhanced from Rs.3 lakh to Rs.5 lakh for TN State Government Employees
GROUP INSURANCE SCHEME – Group Insurance Scheme for employees of Local Bodies, Aided Schools, Aided Colleges, Aided Technical Education Institutions including employees working under Nutritious Meal Programme, Panchayat Assistant /part time clerks and other part-time employees like Sanitary Workers, Over Head Tank / Power Pump Operators drawing consolidated pay / honorarium -Enhancement of lumpsum payment from Rs.3,00,000/- to Rs.5,00,000/- Orders – Issued.
Finance (Pension) Department
G.O.(Ms).No. 198,
Dated:01.09.2021.
Pilava, Aavani – 16,
Thiruvalluvar Aandu – 2052.
Read:-
1. G.O.Ms.No.1515, Finance (Pension) Department, dated: 03-12-1973.
2. G.O.Ms.No.171, Education Department, dated: 02-02-1974.
3. G.O.Ms.No.1383, Rural Development and Local Administration
Department, dated: 31-05-1974.
4. G.O.Ms.No.1386, Rural Development and Local Administration
Department, dated: 31-05-1974.
5. G.O.Ms.No.1680, Rural Development and Local Administration
Department, dated: 17-07-1974.
6. G.O.Ms.No.1471, Finance (Pension) Department, dated: 04-12-1974.
7. G.O.Ms.No.10, Finance (Pension) Department, dated: 02-01-1978.
8. G.O.Ms.No.58, Finance (Pension) Department, dated: 22-02-2016.
9. G.O.Ms.No.197, Finance (Pension) Department, dated: 01-09-2021.
ORDER:
The Tamil Nadu Government Servants’ Family Benefit Fund Scheme, subsequently renamed as the Tamil Nadu Government Servants’ Family Security Fund Scheme was extended to the employees of local bodies and the teaching / non-teaching staff of the aided educational institutions. In the Government Order sixth read above, as both the Government of India and the Life Insurance Corporation of India had pointed out that the Family Benefit Fund Scheme was not in consonance with the Life Insurance Corporation of India Act, 1956, the employees of local bodies and aided educational institutions were brought under Group Insurance Scheme administered by the Life Insurance Corporation of India.
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2. In the Government Order seventh read above, Government introduced the revised Group Insurance Scheme for the employees of all local bodies and the teaching / non-teaching staff of the aided educational institutions with effect from 1-1-1978. According to the revised Group Insurance Scheme, the employees of Local Bodies and Aided Educational Institutions have to contribute a sum every month as fixed by the Government. The excess of premium payable to the Life Insurance Corporation of India over and above the contribution of the employees has to be shared among the Government, Local Bodies and the Management of aided educational institutions on a net cost basis.
3. As and when the monthly contribution and lumpsum amount payable under Tamil Nadu Government Servants’ Family Security Fund Scheme were revised, the monthly contribution and lumpsum amount payable under Group Insurance Scheme were also revised from time to time. In the Government Order eighth read above, a sum of Rs.60/- p.m. is deducted as subscribers contribution and a sum of Rs.3,00,000/- is paid as lumpsum amount directly by the LIC of India in the event of death of the subscribers under Group Insurance Scheme.
4. The Hon’ble Minister for Finance and Human Resources Management of Tamil Nadu in the Budget Speech 2021-2022 on 13-08-2021 has announced that, “the lumpsum grant from the Family Security Fund paid to the family of a Government employee who dies while in service will be enhanced from Rs.3 lakh to Rs.5 lakh Accordingly, the subscription to the Fund shall be enhanced to Rs.110/- per month This benefit is also applicable to the employees covered under Group Insurance Scheme”.
5. Accordingly, the Government issues the following orders:-
i. In the case of death of an employee while in service covered under the Group Insurance Scheme, a sum of Rs.5,00,000/- ( Rupees Five Lakh only) shall be paid to the legal heirs directly by the Life Insurance Corporation of India. The institutions shall follow the existing procedure in claiming the amount from Life Insurance Corporation of India.
ii. The employees of Local Bodies, Aided Schools, Aided Colleges, Aided Technical Education Institutions including employees working under Nutritious Meal Programme, Panchayat Assistant /part time clerks and other part-time employees like Sanitary Workers, Over Head Tank / Power Pump Operators drawing consolidated pay / honorarium shall contribute Rs.110/- p.m. with effect from September 2021. These contributions shall be credited into Government account.
iii. This order shall take effect from 01-09-2021.
iv. There shall be no change in the existing rules governing the Group Insurance Scheme.
v. The local bodies shall remit their share as revised by Government per month per employee into the concerned Treasury/Sub- Treasury in the Government account every month along with the employees’ contribution. The dues of subscription and management contribution, if any, in respect of employees of local bodies under Group Insurance Scheme shall be recovered from Finance Commission grant / Devolution grant payable to the local bodies and remitted to Government under relevant head of account. The orders regarding the local body share of contribution will be issued separately.
vi. The Commissioner of Treasuries and Accounts, the administrator of the Group Insurance Scheme, shall take necessary further action in this regard and report to the Government.
vii. The Head of the Departments and the Local bodies concerned shall furnish the member data of each of the Group Insurance Scheme Policies as mandated by the Insurance Company to the Commissioner of Treasuries and Accounts for consolidation and avoiding any lapse in the policies immediately.
(BY ORDER OF THE GOVERNOR)
S.KRISHNAN
ADDITIONAL CHIEF SECRETARY TO GOVERNMENT