The 7th Pay Commission has recommended the following rates for Central government Employees Group Insurance Scheme (CGEGIS). The subscription amount has been increased considerably to increase the Insurance amount.
This has been objected by NCJCM in its memorandum. The demanded to reduce the monthly deduction as it is much higher than the Premium rates available for Term life Insurance in Open Market. The Central Government accepted this demand and rejected this recommendation and asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.
|
Level of Employee
|
Monthly Deduction (Rs.)
|
Insurance Amount (Rs.)
|
|
10 and above
|
5000
|
50,00,000
|
|
6 to 9
|
2500
|
25,00,000
|
|
1 to 5
|
1500
|
15,00,000
|
The Press release issued by the Central Government says,
” The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.”
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